A judge granted a long-term block of the Department of Justice's "Anti-Weaponization Fund," which sought to pay people who claimed to be targeted by the government.
Judge Leonie Brinkema is also seeking written assurances from Acting Attorney General Todd Blanche and Treasury Secretary Scott Bessent that they won't seek to move forward with it and gave then a week to submit a sworn declaration.
CNBC noted that, according to Brinkema, Blanche's recent testimony to Congress saying that the DOJ was not going forward with it, was not enough guarantee.
The fund in question, announced by the Justice Department in May, was set to the power to issue formal apologies and provide monetary relief to approved claimants. The DOJ said there were "no partisan requirements" to apply and that any unspent money would have returned to the federal government when the fund stops processing claims by Dec. 1, 2028.
However, the first wave of public interest came from Trump supporters, Jan. 6 defendants and longtime allies who say prosecutions, investigations or public scrutiny damaged their lives and finances.
Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, called the arrangement a "slush fund" for Trump loyalists.
Some Republicans criticized the fund too. Sen. Thom Tillis called it a "payout pot for punks."
"These people don't deserve restitution; they- many of them deserve to be in prison," Tillis said following reports that January 6 defendants and Trump allies were already lining up to seek compensation from the fund.
However, a new report has claimed that allies of the Trump administration are looking at alternatives to the fund.
Citing sources familiar with the matter, Reuters detailed that the allies have set their sights on a law called the Federal Tort Claims Act, which allows people to sue the government for alleged wrongdoing. Those claims, the outlet added, can be settled out of court, giving the administration a path to make payments bypassing judges.
Stanley Woodward, the third-ranking official at the Justice Department, told the outlet that "at my level, the fund is dead," but if "somebody wants to submit a claim against the government and sue us, they can still do that."
Elsewhere in the report, Trump ally Michael Caputo said other ways to pay people are being explored. "I've heard no indication that they've slowed down on trying to get victims paid," he said, adding that he's received positive indications from administration officials on the matter.