A federal judge has slapped down the Trump administration’s attempt to funnel $1.8 billion into a so-called ‘anti-weaponisation’ slush fund, and the White House is backing down. Sources confirm the Treasury Department will not appeal the ruling, which blocks the transfer of funds originally allocated to climate resilience and infrastructure projects in Democratic-leaning states.
The money, rebranded as a tool to ‘counter foreign influence and weaponised finance’, was exposed by this newsroom as a thinly veiled slush fund for political patronage. Uncovered documents show the fund was designed to reward loyalist states and punish those that refused to endorse Trump’s election claims. The judge agreed, calling the scheme ‘arbitrary and capricious’.
A senior Treasury official, speaking on condition of anonymity, told me: ‘We’re not going to fight it. The optics are terrible.’ No kidding.
The ruling is a major blow to the administration’s push to centralise control over federal spending. But don’t expect this to be the end. Sources close to the White House say they’re already looking for loopholes to redirect the cash through other channels.
The game never stops.
