The city of New Haven has joined a federal lawsuit seeking to block payouts from a new $1.776 billion settlement fund for allies of President Donald Trump who claim to be victims of politically motivated prosecutions. As reported by Associated Press, Mayor Justin Elicker described the effort as a "political slush fund" for Trump allies, stating 'The residents of New Haven work too hard to see their federal tax dollars go into some unregulated $1.7 billion political slush fund that President Trump and his administration can use to pay off his political cronies and criminals.' Elicker denounced the fund as the latest example of Trump's weaponization of the federal government 'to advance his own personal interests and the personal interests of those who politically support him.' The federal lawsuit, filed in Alexandria, Virginia, is seeking a court order blocking the implementation of the fund and preventing the administration from distributing any money while the litigation is ongoing.
Another advocacy group, Citizens for Responsibility and Ethics in Washington, separately filed its own lawsuit on Friday in Washington, DC, to challenge the 'slush fund' created by Trump's 'sham settlement'. As reported by Associated Press, CREW's suit refers to the fund as 'a jaw-dropping act of presidential corruption'. The lawsuit adds fuel to a mounting backlash against the Trump administration's creation of an 'Anti-Weaponisation Fund' to resolve the Republican president's lawsuit against the Internal Revenue Service over the leak of his tax returns. The suits come as several members of Congress have introduced legislation to block the fund, with Reps. Brian Fitzpatrick and Tom Suozzi on Thursday introducing a bill that would bar federal money from being used to pay any claims submitted to the DOJ's fund.
The plaintiffs for Friday's lawsuit include former Assistant US Attorney Andrew Floyd, an Alexandria resident who prosecuted Capitol riot cases in Washington, DC, before he was fired last year by then-Attorney General Pam Bondi. According to Associated Press, Floyd was a deputy chief of the Justice Department's Capitol Siege Section and believes his firing was retaliation for his January 6 work. Another plaintiff is California State University Channel Islands professor Jonathan Caravello, who was acquitted of an assault charge after being accused of throwing a tear gas canister at federal agents during a 2025 protest against an immigration raid at a Camarillo, California, cannabis farm. Also named as plaintiffs are the government watchdog Common Cause; the city of New Haven, Connecticut; and the National Abortion Federation, an association of abortion providers. Caravello was arrested in 2025 while protesting an immigration raid in California, and subsequently acquitted in April of what he called a baseless charge of felony assault of a federal officer using a deadly or dangerous weapon.
The suit's defendants include the Justice and Treasury departments, Acting Attorney General Todd Blanche, Treasury Secretary Scott Bessent, and Associate Attorney General Stanley Woodward Jr. As reported by Associated Press, the plaintiffs also include the government watchdog Common Cause; the city of New Haven, Connecticut; and the National Abortion Federation. New Haven claims the Trump administration officials have targeted it and other municipalities that they perceive to be 'sanctuary' cities. The federation fears that the fund will issue payments to people who have attacked abortion clinics, providing an incentive for more violence against its members. The 45-page complaint argues the Trump administration does not have the power to create the fund and unlawfully bypassed Congress's authority over federal spending. The lawsuit notes New Haven has faced lawsuits and threats of lost funding from the Trump administration, but claims the city would not be treated like Trump allies by the fund because it was 'targeted by Republican officials or federal employees, rather than Democratic ones.'
The lawsuit comes amid strong pushback from Senate Republicans, with several lawmakers promoting legislation that would ban taxpayer money from being used for the $1.8 billion payout pool. According to Associated Press, Senate Majority Leader John Thune told reporters that the White House needs to help with the issue because 'we have a lot of members who are concerned.' Sen. Mitch McConnell blasted the fund on Thursday, stating 'So the nation's top law enforcement official is asking for a slush fund to pay people who assault cops? Utterly stupid, morally wrong – Take your pick.' However, several House Republican lawmakers defended the fund in interviews with CNBC's 'Squawk Box.' House Budget Committee Chairman Jodey Arrington said Trump has 'been one of the biggest victims of weaponization,' and considers it 'an appropriate approach and use of tax dollars, as long as the guardrails exist.' Arrington also emphasized the need for 'accountability measures and the safeguards, so that it is not a quote, slush fund, where you're doling out monies to political allies that don't have legitimate claims.'
