Business Insights: Global Markets, Strategy & Economic Trends
- Justice Department created a fund to compensate people who claim the Biden administration improperly targeted them, including Trump supporters and Jan. 6 participants.
- The Treasury will deposit $1.776 billion into an account overseen by a panel chosen by acting AG Todd Blanche, funded from the Judgment Fund.
- Judgment Fund is an uncapped pot used to pay federal settlement claims without needing congressional approval.
- The fund stems from a settlement of President Trump's lawsuit against the IRS over alleged tax disclosures; he later dropped the suit under judicial scrutiny.
The top lawyer at the Treasury Department stepped down on Monday in the wake of the creation of a $1.8 billion “anti-weaponization fund” that could soon make payments to President Trump’s political allies, according to three people familiar with the move.
Brian Morrissey, the Treasury’s general counsel, resigned from the position seven months after he was confirmed to it by the Senate and just hours after the Trump administration announced the fund on Monday.
Mr. Morrissey did not respond to requests for comment. A Treasury spokesman said, “Mr. Morrissey has served the United States Treasury with both honor and integrity. We wish him all the best in his next endeavors.” In his resignation letter, Mr. Morrissey said he was grateful to have worked for Mr. Trump and Treasury Secretary Scott Bessent, according to two people familiar with the letter.
The Justice Department created the fund to disburse payments to people who claim that the Biden administration improperly targeted them — a population that includes supporters of Mr. Trump and former members of his staff. Among them are people who stormed the Capitol on Jan. 6, 2021.
The Treasury Department is responsible for depositing $1.776 billion into an account that will be controlled by a group of people selected by the acting attorney general, Todd Blanche, according to the terms of the fund released on Monday. That money will come from the Judgment Fund, an uncapped pot of funding that is available for the federal government to pay settlement claims without needing congressional approval.
The Justice Department is creating the anti-weaponization fund as part of an agreement to settle a lawsuit that Mr. Trump brought against the Internal Revenue Service, which falls under the umbrella of the Treasury Department. In his suit, Mr. Trump accused the I.R.S. of not doing enough to prevent the unauthorized disclosure of his tax information during his first term. The president dropped the suit on Monday under scrutiny from a judge who questioned whether Mr. Trump could legally sue a government agency he controls.
Read the full article from the original source


