A longtime ally of Donald Trump has become the first individual to seek a taxpayer-funded payout from the President's newly established $1.8 billion 'slush fund,' requesting $2.7 million in damages. Michael Caputo, a former spokesman for the Trump administration, claims he was wrongfully targeted by the FBI during the Obama-era investigation into the Trump campaign's alleged ties to Russia.
Caputo's Claim
Attorney General Todd Blanche received a letter from Caputo, which was posted on X, where Caputo asserts that 'the machinery of government was clearly politically weaponized against my family from July 2016 to December 2025.' Caputo informed Blanche that he was the target of a 2021 investigation linked to his documentary for One America News, which alleged that Ukraine had meddled in the 2020 election to benefit Joe Biden. A declassified March 2021 intelligence assessment connected Russian operatives to a January 2020 documentary aired on a US network, widely believed to be Caputo's film.
The Fund's Creation
The Justice Department resolved a $10 billion lawsuit brought by the President against the agency by establishing a $1.8 billion fund intended for his political allies. This fund was created to issue formal apologies and monetary relief to claimants who were subjected to 'lawfare' under the Biden administration. Democratic lawmakers have strongly criticized Trump over the fund, calling it the most corrupt act in presidential history. Trump, however, defended the fund, stating it was designed to reimburse those who were 'horribly treated.'
Eligibility and Challenges
More than 1,600 January 6 defendants pardoned by Trump are eligible to receive payments from the fund. However, two police officers who defended the US Capitol during the 2021 riot have sued Trump in a Washington, DC, district court to block the fund. The plaintiffs, former Capitol police officer Harry Dunn and active DC police officer Daniel Hodges, claim Trump created 'a $1.776 billion taxpayer-funded slush fund to finance the insurrectionists and paramilitary groups that commit violence in his name.' Hodges was pinned in a doorframe by a rioter wielding a stolen police shield, beaten in the head, and left bleeding from the mouth during the Capitol riot, suffering a concussion in one of the most widely circulated assaults from that day.
While Trump is barred from directly receiving payments from the fund, entities associated with him are not explicitly prohibited from filing additional claims. The President, his sons Don Jr. and Eric, and the Trump Organization initially filed suit against the Treasury and IRS in the Southern District of Florida federal court after the leak of their tax returns in 2019.
Oversight and Appointments
Five commissioners will be appointed to oversee the fund and disburse payments to those seeking redress for alleged political persecution under Biden. Blanche, Trump's former attorney who defended him during his criminal trials, will be responsible for appointments to the commission. Trump retains the authority to remove any member. Blanche was grilled by a Democratic senator on Capitol Hill on Tuesday. The Attorney General defended the fund, stating that it would not be limited to Republicans or those investigated by the Biden Department of Justice. Blanche said all payouts will be a matter of public record and described the fund as 'a lawful process for victims of lawfare and weaponization to be heard and seek redress.'
