A federal judge on Wednesday dismissed a lawsuit from a government watchdog seeking to block the Department of Justice’s now-abandoned $1.776 billion “anti-weaponization” fund, but not before issuing a pointed warning to agency attorneys to avoid obfuscation.

U.S. District Judge Richard Leon, a George W. Bush appointee, denied the temporary restraining order request from Citizens for Responsibility and Ethics in Washington (CREW), a group that describes itself as nonpartisan. The judge ended the hearing by cautioning DOJ attorney Andrew Block not to “play possum with this court” regarding the fund’s status, according to The Associated Press.

Read also
Politics
White House UFC Fight Cost Tops $60M, Sparks Ethics Concerns
Federal agencies and the UFC have spent at least $60 million on a White House cage fight for President Trump's birthday, prompting a lawsuit alleging corruption.

CREW had filed suit on May 22, arguing that the fund constituted a “jaw-dropping act of presidential corruption” and was “brazenly illegal” because Congress never authorized it. The fund was created by Acting Attorney General Todd Blanche—whom President Trump formally nominated for the permanent role earlier this week—as part of a settlement in a reopened lawsuit by Trump against the Internal Revenue Service.

The DOJ initially said the fund would provide monetary payments to individuals who successfully argued the government had wronged them. But the proposal drew immediate bipartisan backlash on Capitol Hill, with lawmakers from both parties expressing alarm that people convicted of assaulting police officers during the January 6, 2021, Capitol attack could receive taxpayer dollars.

The department backed down earlier this month after a federal judge in Virginia temporarily blocked any payouts. Blanche told a House Appropriations subcommittee on June 2 that the DOJ is “not moving forward” with the fund. However, he declined to commit to putting that decision in writing, and noted he would not withdraw a memo that bars the IRS from reviewing prior tax returns of Trump, his family, and his businesses.

President Trump defended the fund in an interview that aired Sunday on NBC’s “Meet the Press,” expressing hope the department would revive it. “I think the weaponization fund is a great idea, and so do many other Republicans,” he told host Kristen Welker. “You have to get it approved. If they get it approved, that’s great. If they don’t get it approved, I’d be disappointed.”

The episode underscores ongoing tensions between the executive branch and Congress over spending authority, as well as the broader political debate over the administration's approach to federal power. Critics argue the fund was an end-run around congressional appropriations, while supporters see it as a necessary check on alleged government overreach.

Legal experts note that while the temporary restraining order was denied, the underlying legal questions about the fund’s constitutionality and the scope of executive authority remain unresolved. The case could resurface if the DOJ attempts to revive the program or if Congress takes further action to restrict such funds.