DOJ Fund Dispute Intensifies
DOJ Refuses Judge's Sworn Declaration, $1.8 Billion Anti-Weaponization Fund Lawsuit Proceeds
Key Points
In the court notice, Andrew Block—senior counsel to Associate Attorney General Stanley Woodward—argued the declaration was “unnecessary,” and challenged the judge’s assumption that “mootness can arise only by compelling testimony from three senior government officials,” saying that premise “implicate[s] separation of powers concerns.”
Block told the court that acting AG Todd Blanche had already stated to Congress that the fund is “not going forward, period,” and said similar statements have appeared in DOJ court filings.
DOJ’s filing attached evidence of Blanche’s congressional testimony to support its position—Raw Story reported the DOJ included a copy of Blanche’s testimony with its notice to the court.
A critical analysis in MeidasTouch News said DOJ’s discussion of “penalties” for falsity in connection with Blanche’s congressional testimony may be misleading: it noted that one possible penalty would be a criminal statute for false statements to Congress, which could only be enforced by DOJ, while other referenced penalties are lawyer-conduct rules that don’t extend to criminal contempt beyond monetary sanctions.
CBS News reported that the lawsuit seeking to challenge the fund includes “a coalition that includes two nonprofits and a former federal prosecutor,” and Brinkema warned the case would move forward if the administration did not file the declaration under penalty of perjury.
The Justice Department refused on June 19 to submit a sworn court declaration stating that Trump's $1.776 billion "Anti-Weaponization Fund" is permanently dead. CBS News reported that the DOJ instead argued the declaration was "unnecessary" and that forcing senior officials to sign one raises "separation of powers concerns."
The refusal came one week after U.S. District Judge Leonie Brinkema set a firm deadline. She had offered to dismiss the lawsuit entirely if Acting AG Todd Blanche, Treasury Secretary Scott Bessent, and Associate AG Stanley Woodward signed a sworn statement under penalty of perjury. They did not. The case will now move forward.
DOJ Says Blanche's Word Should Be Enough
Senior DOJ counsel Andrew Block filed the refusal notice on behalf of Associate AG Stanley Woodward's office. Block argued that Blanche had already told Congress the fund is "not going forward, period." He said that statement, made during a June 2 Senate hearing, should be enough for the court to drop the case, according to CBS News.
The DOJ attached a copy of Blanche's congressional testimony to its court filing as supporting evidence, Raw Story reported. Block argued the court was wrong to assume a sworn declaration is the only way to prove the fund is dead. He said that assumption "implicate[s] separation of powers concerns" because it would force Cabinet-level officials to testify under a judge's command.
Judge Brinkema's Injunction Stays in Place
Judge Brinkema first blocked the fund with a temporary restraining order on May 29. She extended that block indefinitely on June 12. The fund, which was set up using the Treasury's Judgment Fund — a permanent pool of money used to pay government settlements — remains frozen, according to AP News.
The plaintiffs include two nonprofits and a former federal prosecutor, CBS News reported. They argue the fund is an unconstitutional "slush fund" for political allies. Because the DOJ refused the sworn declaration, the case — *Floyd v. Department of Justice* — will now enter the discovery phase. That could mean subpoenas for internal DOJ communications.
Congressional Testimony Is Not the Same as a Court Oath
MeidasTouch News published a sharp critique of the DOJ's strategy. It noted that lying to Congress is a crime — but only the DOJ itself can prosecute it. That creates a direct conflict of interest. A court declaration, by contrast, carries the threat of criminal contempt enforced by the judge. The DOJ's argument, critics say, replaces a hard consequence with a soft one.
The DOJ pointed to lawyer-conduct rules as another penalty for false statements. But MeidasTouch News noted those rules only allow monetary sanctions — not criminal contempt. The distinction matters because it tells the court how seriously the government is willing to be held accountable for its word.
Blanche's Senate Confirmation Now at Greater Risk
The fund was created from a settlement in a $10 billion Trump lawsuit against the IRS over a 2019 tax-return leak. The DOJ settled the case using the Judgment Fund and set aside $1.776 billion — a figure that symbolically references 1776 — for "victims of lawfare," according to The Guardian.
Todd Blanche is currently acting AG. His permanent confirmation is pending in the Senate. The New Republic noted that defying a federal judge's direct request is likely to become a major issue in his confirmation hearings. Democratic senators have already called the fund a "payout" for January 6 rioters. The administration's refusal to sign a sworn statement gives those critics fresh ammunition.
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