The Trump administration has recently established a $1.8 billion fund intended to compensate individuals who allege mistreatment by the federal government. Legal experts express concerns that this fund seems to breach established Justice Department standards and practices along with directives issued by the administration previously.
On Pam Bondi’s first day as Attorney General in February 2025, she signed a directive that ostensibly prohibited the creation of such a fund. Despite this, Todd Blanche, the acting Attorney General, defended the fund during a Senate hearing on Tuesday, describing it as ‘unusual’ but appropriate, referencing past settlements.
Justice Department veterans express skepticism toward these defenses, mainly focusing on a clause within the agreement granting President Trump, his sons Eric and Donald Trump Jr., and the Trump Organization immunity from tax penalties. This has fueled criticism regarding a lawsuit resolution favoring a separate group of individuals with substantial financial benefits.
“I have never heard of the department ever being willing to grant blanket immunity,” stated Jennifer Ricketts, a former branch director in the department’s civil division. “That seems blatantly corrupt. It’s a shocking gift to the president.”
The fund appears to defy a Trump administration policy from the preceding year, put into effect by Attorney General Pam Bondi, that mainly restricted payments to groups not directly involved in any lawsuit. Attempts to obtain remarks from a Justice Department spokeswoman went unanswered.
The agreement reached between the president’s legal representatives and the administration, lacking judicial supervision, potentially offers significant financial compensation to individuals who had not previously filed suit against the government.
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