June 26, 2026

In a recent legal twist, Associate Attorney General Stan Woodward's unusual approach to dismiss a lawsuit challenging former President Trump's controversial $1.8 billion slush fund was thwarted by Federal Judge Leonie Brinkema. The fund, intended to address grievances against the IRS, was blocked from operation by Judge Brinkema on June 12, requiring senior officials to declare under oath that they would not proceed with the fund's creation or operation.
Despite the option to end the lawsuit by filing straightforward declarations, the DOJ, led by Woodward, chose a more confrontational route. Woodward argued that such declarations were unnecessary and raised concerns about the separation of powers, referencing the apex doctrine and pointing to Acting Attorney General Todd Blanche’s non-committal testimony before Congress as sufficient assurance.
Woodward's defiance did not sit well with Judge Brinkema, who noted that Woodward overstated the legal risks involved for officials making false statements during litigation, as they are generally immune from criminal prosecution in such contexts. Furthermore, Trump's persistent public refusal to permanently disavow the fund added to the judge's skepticism about the fund's cessation.
As a result, Judge Brinkema dismissed the DOJ's arguments and scheduled further briefings, indicating that the slush fund's fate remains uncertain and the lawsuit very much alive. This development underscores the ongoing legal and political complexities surrounding the Trump administration's controversial initiatives and the judiciary's role in maintaining checks and balances in government actions.