A federal judge on Friday temporarily blocked the Trump administration from making payouts or moving forward with a $1.776 billion settlement fund designed to compensate individuals who believe they were victims of government weaponization.

U.S. District Judge Leonie Brinkema in Alexandria, Virginia, issued the temporary restraining order to prevent any funds from being "irreversibly disbursed" while litigation challenging the fund proceeds. She scheduled a June 12 hearing to consider arguments on whether to extend the order blocking the so-called "Anti-Weaponization Fund."

The Justice Department established the fund as part of a settlement to resolve President Trump's civil lawsuit against the Internal Revenue Service over the leak of his tax returns. The fund was announced last week as part of the Trump administration's broader effort to address what it characterizes as the weaponization of government agencies against political opponents.

The legal challenge was filed by Democracy Forward, a legal advocacy group, which argues there is no legal basis or accountability framework for the fund. Their lawsuit seeks a court order permanently halting the fund's implementation and preventing any disbursements.

The fund has generated significant controversy since its announcement, with critics including some Republicans raising concerns about eligibility criteria and the possibility that participants in the January 6, 2021 Capitol riot could seek compensation. The Justice Department has not yet formed the five-member commission that would determine payout criteria, and no money has been distributed or claims processed.

Acting Attorney General Todd Blanche has faced questioning from lawmakers about the fund's structure and oversight mechanisms. The temporary order ensures the status quo is maintained while the court considers the legal challenges to the fund's creation and operation.