Trump Critics Sue to Dissolve $1.8B 'Anti-Weaponization Fund' Created Through IRS Settlement

A coalition of individuals and organizations targeted by Trump's Justice Department filed a lawsuit in Alexandria, Virginia, seeking to dissolve the newly created 'Anti-Weaponization Fund.' The $1.776 billion fund, established May 18, 2026, through a settlement in Trump v. IRS, purports to compensate victims of government 'weaponization' under Democratic administrations. Plaintiffs include a fired prosecutor, a college professor, and the City of New Haven. They argue the fund unconstitutionally exceeds executive authority, bypasses Congress's spending power, violates the Administrative Procedure Act, and discriminatorily favors Trump allies. Legal experts told PolitiFact the fund lacks precedent, with critics calling it 'blatant corruption' and a 'slush fund' with no legal basis or accountability. This lawsuit is separate from the May 20 Capitol officers' lawsuit, filed by different plaintiffs in a different venue challenging the same fund.

"The plaintiffs claim the tax-dollars-backed fund is wrongly applied only to those who claim to have been the targets of the Justice Department under Democratic administrations." — From the lawsuit filed in Alexandria, Virginia, describing the discriminatory nature of the fund's application criteria