CREW Sues Treasury Department Over Undisclosed Judgment Fund Settlement Payouts

Aug 3, 2026

On August 3, 2026, Citizens for Responsibility and Ethics in Washington (CREW) sued the US Treasury Department, accusing it of illegally withholding details of settlement payouts from its Judgment Fund. The lawsuit alleges the Trump administration is using the fund to secretly pay millions in restitution to political allies and January 6th defendants, bypassing a recently rescinded $1.776 billion "weaponization" slush fund. Notable payouts include a $1.25 million settlement to former National Security Adviser Michael Flynn.

CREW lawsuit against Treasury

▪Citizens for Responsibility and Ethics in Washington filed a lawsuit against the United States Treasury Department on August 3, 2026.
▪The lawsuit seeks to require the Treasury Department to correct inaccurate descriptions of previous payments and post required information going back to the start of the current Trump administration.
▪The lawsuit by Citizens for Responsibility and Ethics in Washington seeks a court order forcing the Treasury Department to disclose details of settlements paid from the Judgment Fund.

Trump settlement slush fund

▪In May 2026, President Donald Trump entered into a $1.776 billion settlement with the Justice Department to pay victims of "weaponization," including January 6th defendants.
▪The Trump administration formally rescinded the order establishing the $1.776 billion fund on the weekend of August 1-2, 2026, under duress from Congress.

Judgment Fund disclosure violations

▪The Treasury Department is legally required to publicly disclose settlement payment details, including names of claimants, their counsel, and a brief statement of facts.
▪The law requiring the public disclosure of settlement payments was passed on a bipartisan basis and primarily sponsored by Republican Representative Doug Collins.
▪The Treasury Department has adopted an across-the-board policy of omitting names and facts in settlement disclosures, instead publishing opaque and inaccurate descriptors.

January 6th defendant payouts

▪Supporters of President Donald Trump, including January 6th defendants, have pursued payouts through the Federal Tort Claims Act settlement process, seeking millions of dollars in restitution.
▪Under Acting Attorney General Todd Blanche, the Justice Department has awarded settlements to January 6th participants and other political allies.

Michael Flynn settlement

▪The Justice Department agreed to pay $1.25 million to settle a Federal Tort Claims Act case brought by former National Security Adviser Michael Flynn.
▪The Justice Department settled Michael Flynn's wrongful prosecution case despite Flynn pleading guilty and a district court having already dismissed the case.