payout

July 8 (UPI) — New York Federal Judge Lewis Kaplan ordered that writer E. Jean Carrol be paid $5 million plus interest in damages owed to her after President Donald Trump was found liable for sexual abuse and defamation.

But Trump’s attorneys have already filed an appeal of Kaplan’s order with the 2nd Circuit U.S. Court of Appeals.

“The American People stand with President Trump as they demand an immediate end to all of the Witch Hunts, including the Democrat-funded travesty of the Carroll Hoaxes. President Trump will keep winning against Liberal Lawfare, as he continues to focus on his mission to Make America Great Again,” a spokesperson from the legal team told CNBC.

Trump and his attorneys filed a motion Tuesday to pause the payout, arguing there was still a case pending before the U.S. Supreme Court. They were arguing against Carrol’s motion to disburse the money from escrow filed on June 30.

Trump’s attorneys had argued that a “timely petition for rehearing remains pending before the Supreme Court.”

“Collection cannot begin while proceedings remain pending before the Supreme Court, which is currently the case,” lawyers Josh Halpern and Michael Madaio wrote in their response to Carroll’s petition.

In his order, Kaplan mentioned an agreement between Carroll and Trump that called for the money to be given to her if the Supreme Court denied his appeal.

The Court declined to hear Trump’s case on June 29. That means the verdict finding him liable stands.

Kaplan didn’t agree with lawyers’ arguments about the Supreme Court because Trump’s petition for reconsideration isn’t likely to succeed. The Court rarely grants those requests, CNBC reported.

Carroll was awarded the damages by a jury in 2023 after finding him liable for sexual abuse in a department store dressing room in the 1990s and for defaming her in 2019 after she came forward with the allegations. Trump denies the allegations.

In the defamation case, Carroll was awarded $83.3 million in damages.

“Surprisingly, the Supreme Court declined to ‘review’ a Fake Case brought against me by a woman I never met (Decades old celebrity photo line, standing with her husband, does not count!),” Trump wrote on Truth Social in late June. “I will continue the fight against this Weaponization and Lawfare Case against me, including the ridiculous claim of Defamation, with all of my power and strength.”

Trump’s lawyers claim that a petition for rehearing is “pending” before the Supreme Court, but records show it wasn’t accepted for filing this week, The Hill reported.

In the petition, the lawyers argue that Trump would have “unrecoverable loss” if the money were disbursed then overturned on appeal because Carroll has said she would donate all the money from the defamation suit.

“Plaintiff has repeatedly stated that she intends to give away all funds that she collects from him, and once those funds are distributed to third parties, they likely cannot be recovered,” lawyers Josh Halpern and Michael Madaio wrote in the filing.

Carroll’s attorneys argued that Trump is trying to unjustly delay the payment.

“This is the end of the line,” they wrote in a June 30 filing. “After four years of litigation across every level of the federal court system, it is time for this case to end.”

WASHINGTON — Acting Atty. Gen. Todd Blanche said Tuesday that the Trump administration was scrapping plans to create a $1.8 billion fund meant to compensate allies of the Republican president after widespread political backlash and setbacks in the courts.

“We are not moving forward with the fund, period,” Blanche said in response to questions at a House hearing on the Justice Department budget.

““Not moving forward, ever?” asked Rep. Grace Meng, a New York Democrat.

The blunt declaration marked an extraordinary turnabout for a Trump Justice Department that just two weeks ago had pronounced the fund as essential to make up for what officials insist was weaponized law enforcement during President Biden’s Democratic administration. Since then, though, the idea has faced mounting pressure from Republicans who demanded reassurances that plans for the fund were off the table before they would move forward with legislation funding President Trump’s immigration enforcement agencies.

Blanche said the Justice Department was not abandoning an element of a settlement with the IRS that gave Trump and his family immunity from tax audits.

The hearing before a House Appropriations subcommittee was scheduled for discussion of the Justice Department’s budget, but lawmakers quickly focused their questioning on the creation of a fund that has provoked outrage over the mere possibility that violent pro-Trump rioters who stormed the U.S. Capitol on Jan. 6, 2021, could be eligible for payouts.

Signs for the retreat surfaced Monday when a person familiar with the matter said the Republican president was now reconsidering whether to move forward with the fund established to resolve his lawsuit against the Internal Revenue Service over the leak of his tax returns. The Justice Department also said Monday it would comply with a Virginia court temporarily blocking the administration’s “Anti-Weaponization Fund,” effectively agreeing to pause the plan for at least two weeks.

Another judge in Florida raised the prospect of reopening the IRS lawsuit because of “grievous allegations” of improper dealing made against the administration by settlement critics.

The Trump administration has defended the fund as an appropriate measure to make up for what officials insist was a weaponized Justice Department during President Joe Biden’s Democratic administration, a claim the Biden administration strongly denied. Though some Trump supporters, including participants in the Capitol riot, have celebrated the announcement, the reaction among Republicans in Congress has been decidedly more hostile, forcing Blanche to try to assuage a GOP constituency that generally operates in close alignment with the administration.

The furor has especially complicated matters in the Senate, where Republicans defiantly left town 10 days ago without passing legislation to fund Trump’s immigration enforcement agencies. Republicans who returned to Washington on Monday said they won’t have the votes to pass the Homeland Security spending bill until the White House works with them to place parameters on the fund. Many have pushed the administration to impose limits or scrap the idea altogether.

At a Senate budget hearing last month, Blanche refused to rule out the possibility that those who carried out violence on Jan. 6 could be eligible for payouts and has repeatedly said in interviews that anyone who feels persecuted by the criminal justice system is free to apply. Payouts will be decided by a five-member commission appointed by Blanche.

But he has apparently struck a more conciliatory tone in private when confronted by Republican anger.

Blanche encountered a groundswell of opposition last month at a tense private meeting with GOP senators, with more than half raising concerns, including by shouting at the Justice Department’s top official, Republican Sen. Ted Cruz of Texas said in a recent episode of his podcast.

“There were fireworks at an epic level — and I’ve got to say, it’s one of the roughest meetings I’ve seen in my entire time in the Senate,” Cruz said.

Behind closed doors, Blanche was “adamant” that no one who assaulted police at the Capitol would receive compensation, according to Cruz.

“He said not just ‘no,’ but ‘hell no,’” the senator recalled.

Tucker and Richer write for the Associated Press.

WASHINGTON — A federal judge on Friday temporarily blocked President Trump’s administration from paying any claims through a new $1.776 billion settlement fund for the Republican president’s allies who believe they were victims of a weaponized government.

U.S. District Judge Leonie Brinkema in Alexandria, Va., also barred the government from moving forward with the fund’s creation while litigation is pending to challenge it.

The judge, who was nominated to the bench by President Clinton, a Democrat, scheduled a June 12 hearing for arguments on whether to extend the order blocking payouts from an “Anti-Weaponization Fund.” The government created the fund to resolve Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns.

The White House declined to comment on the judge’s ruling and referred all questions to the Justice Department, which didn’t immediately respond to a request for comment.

The fund has generated a fierce backlash since it was announced last week, with even Republicans pressing acting Atty. Gen. Todd Blanche over the eligibility considerations and the possibility that even violent rioters at the U.S. Capitol on Jan. 6, 2021, would be free to seek compensation.

The Justice Department hasn’t formed the five-member commission that will decide on payout criteria, so there has been no money paid out yet or claims accepted.

Plaintiffs’ attorneys from the legal advocacy group Democracy Forward are seeking a court order halting the fund’s implementation and preventing the Trump administration from disbursing any payouts from it. The federal suit claims there is no legal basis or accountability behind the fund.

The Virginia lawsuit’s plaintiffs include a fired prosecutor and a college professor acquitted of assaulting federal agents at a protest.

“The unlawfulness that has imbued the Anti-Weaponization Fund from its inception requires that it be wholly dismantled,” the suit says.

At least two other lawsuits, both filed separately in Washington, also are challenging the fund’s creation. A lawsuit filed by the advocacy group Citizens for Responsibility and Ethics in Washington refers to the fund as “a jaw-dropping act of presidential corruption.” Two police officers who helped defend the Capitol from a mob of Trump supporters sued last week.

During a congressional hearing, Blanche wouldn’t rule out the possibility that rioters who assaulted police on Jan. 6 could be eligible for fund payouts.

Nearly 1,600 people were charged with Capitol riot-related federal crimes. Over 1,200 were convicted and sentenced before Trump handed out mass pardons, commuted prison sentences and ordered the dismissal of every pending Jan. 6 criminal case last year.

Kunzelman writes for the Associated Press. AP writers Darlene Superville, Alanna Durkin Richer and Eric Tucker contributed to this report.