U.S. Justice Department resists sworn pledge on halted anti-weaponization fund

Traders Union
All News
Financial News
Justice Dept anti-weaponization fund

Highlights

Judge Leonie Brinkema extends her block on the $1.8 billion anti-weaponization fund, demanding sworn statements from DOJ and Treasury officials by next week.
The DOJ argues a sworn declaration is unnecessary, citing public commitments and separation of powers concerns, while the court insists prior verbal assurances are insufficient.
The fund, announced in May as part of Trump's $10 billion IRS lawsuit settlement, faces bipartisan criticism for potentially aiding Trump allies linked to the Jan. 6, 2021 Capitol riot.

Court dispute over written assurances

As reported by CNBC, the Department of Justice tells a federal judge that it is "unnecessary" to submit a sworn written declaration saying it will not proceed with the fund, arguing that senior administration officials have already made that position clear to Congress and in court filings.

Judge Leonie Brinkema requests a sworn declaration from Acting Attorney General Todd Blanche before agreeing to dismiss a lawsuit that seeks to block the fund permanently. In a Friday filing, DOJ attorney Andrew Block says the demand raises serious separation of powers concerns and points to prior public statements that the fund is "not going forward, period."

Block says those statements were made under circumstances carrying serious penalties for falsity. Brinkema, however, says earlier verbal assurances from DOJ leadership are not enough and last week extends her block on the fund while giving Blanche and Treasury Secretary Scott Bessent a week to file written sworn declarations.

Political and financial stakes of the fund

The $1.8 billion fund is designed to compensate purported victims of prosecutorial overreach during the Biden administration. The DOJ announces in May that it is creating the fund as part of a settlement of Trump's $10 billion lawsuit against the Internal Revenue Service over the leak of his tax records by an IRS contractor.

Critics argue the plan could channel money to Trump's allies, including people charged with or pleading guilty to crimes related to the Jan. 6, 2021 riot at the U.S. Capitol. Blanche previously testifies to a House panel that the fund is not moving forward, but Brinkema notes that Trump later says he wants to proceed with it, reinforcing her doubts about the administration's position.

The proposal draws sharp criticism from both Republicans and Democrats, adding to the pressure on the administration as the court weighs whether the fund is truly abandoned or could still be revived.

In our earlier article, we covered the diplomatic spat between Italy and the U.S. after Giorgia Meloni publicly rejected Donald Trump’s claim that she had “begged” him for a photo at the G7 summit. We noted that Italy’s foreign minister Antonio Tajani canceled a planned trip to the United States in response, underscoring broader strains in U.S.-Italy relations tied to disputes over Iran, Ukraine, and trade.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.