
Donald Trump made a deal with desperate-to-become-AG-but-currently-just-Acting-AG Todd Blanche to that gives a board of Trump's cronies $1.776 billion and the right to do anything they want with it, except (ostensibly) to give it to Trump directly. And do it in secret. Trump will probably arrange to give large chunks to organizations that he controls completely, like The Trump Organization, one of his many companies, or give it to cronies to buy Trump crypto. He could also start a new foundation in Florida after courts ended the corrupt one he had in New York and give payouts to cronies to "donate" to his foundation, possibly in return for lucrative government contracts.
But there is a good chance he will disburse some of it to "worthy" organizations and other people. In fact, they are already lining up with their begging bowls out. One segment of Trump's base that feels neglected is the anti-abortion movement. He hasn't done anything for them. But now he can do something under the radar that will score him some points. Many anti-abortion protesters have been arrested and imprisoned for disrupting abortion clinics. Now they want not only pardons, but also cash for their efforts. The new pot of money could be an easy way to funnel money to anti-abortion individuals and groups without anyone finding out. Presumably Trump will set up a shell company in the Bahamas he can pay and it can send money to a shell company on the Cayman Islands that will shovel money to a shell company in Panama that will make the actual payments in a way a future Democratic AG won't be able to trace.
Many Trump allies who helped plot the Jan. 6 coup attempt are sure to apply. John Eastman and Ken Chesebro, both of whom were disbarred, will surely be high on the list, as well as Jenna Ellis, who also lost her law license, and many others. Maybe even Rudy Giuliani. The foot soldiers, the rioters themselves, may get small payouts, more as a signal to future rioters than to compensate them for their punishments for breaking the law. However, Joseph McBride, a lawyer who represented many of them, is skeptical. He said: "Do I think any of this is real? I'll believe it when I see it."
Groups like the Proud Boys and Oath Keepers that have supported Trump and took part in the riot are probably busy writing their grant proposals already. Probably every right-wing group in the country is going to smell the money and apply.
Democrats are furious. Sen. Chris Van Hollen (D-MD) said: "Rewarding individuals who committed crimes is obscene. Every American can see through this illegal, corrupt, self-dealing scheme." Sen. Jack Reed (D-RI) said: "This all seems to be an obvious abuse of power by the Department of Justice, by the president." Rep. Jamie Raskin (D-MD) said the fund is "an absolute violation of congressional spending power."
Where will the money come from? Trump (or, more likely, OMB Director Russell Vought) found a fund created in 1957 called the Judgment Fund. It is a permanent uncapped appropriation that was approved by Congress that can be used by the government when it loses or settles a lawsuit. It will come from that. Whether Trump's deal fits the requirements for using the fund will likely be litigated for years. Back in 1957, no one was thinking of a president suing the government, reaching an immense settlement with himself, and using this pot to pay it. A future AG might take a dim view of this and see it as stealing. (V)