LIVE: Trump $1.8B Scheme Faces IMMINENT COLLAPSE!!
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Summary
Takeaways
- ❖The $1.8 billion fund is facing at least five major lawsuits from various plaintiffs, including CREW, a former January 6th prosecutor, and Capitol Police officers.
- ❖A federal judge has reopened the original IRS lawsuit that established the fund, ordering the government to address charges of fraud and collusion.
- ❖Senate Republicans, including Lindsey Graham and Ted Cruz, are actively pressuring Trump to abandon the fund, citing its political unpopularity and impact on their re-election campaigns.
- ❖The fund is criticized for violating the Administrative Procedure Act by not allowing public notice and comment, and for allegedly being based on a fraudulent 'settlement' without a genuine legal controversy.
- ❖The fund's specific amount ($1.776 billion) and its potential to compensate January 6th insurrectionists are key points of contention and legal challenge.
Insights
1Multi-Front Legal Assault on the Fund
Donald Trump's $1.8 billion fund is facing numerous legal challenges from diverse groups, including Citizens for Responsibility and Ethics in Washington (CREW), a former January 6th prosecutor, and Capitol Police officers Harry Dunn and Danny Hodges. Each lawsuit attacks the fund from different legal angles, such as procedural violations, viewpoint discrimination, and the alleged fraudulent basis of its creation.
CREW filed a lawsuit, a former January 6th prosecutor filed a lawsuit, Harry Dunn and Danny Hodges filed a lawsuit. Allison Gill also filed a lawsuit. A judge temporarily enjoined the government from operating the fund in the former federal prosecutor's case. Jamie Raskin introduced a bill to dissolve the fund. 35 former federal judges filed a motion to reopen the case that Blanche used to set up the fund.
2Judicial Scrutiny of Alleged Fraud and Collusion
Federal Judge Kathleen Williams has reopened the original $10 billion lawsuit filed by Trump against himself, the IRS, and the DOJ, which was used to establish the $1.8 billion fund. She has ordered the government to respond to charges that Trump, the IRS, and the DOJ colluded to commit a fraud on the court, questioning the legitimacy of the 'settlement' that created the fund.
Judge Williams has ordered the government to answer the charges that Trump and the IRS and the DOJ colluded to commit a fraud on the court in Trump's original $10 billion lawsuit against himself, the IRS, an entity he controls. The 35 former federal judges' motion seeks to unwind not just the fund but the underlying settlement based on no real controversy and collusion.
3Bipartisan Republican Opposition
A significant number of Senate Republicans, including prominent figures like Lindsey Graham and Ted Cruz, are pressuring Donald Trump to abandon the fund. They view the fund as a political liability that is unpopular with constituents and could harm their re-election campaigns, even holding ICE funding hostage to force Trump's hand.
Lindsey Graham and about a dozen Senate Republicans are pressuring Trump to scrap the fund because it's unpopular and they don't want to defend it on the campaign trail. They are holding ICE funding hostage, offering to fund ICE if Trump drops the $1.8 billion fund. Ted Cruz described a meeting with Todd Blanche on the Hill as a 'bloodbath' with half the Republican Senators yelling at him.
4Procedural Defects and Administrative Violations
One key legal challenge, exemplified by Allison Gill's lawsuit, argues that the fund was established in violation of the Administrative Procedure Act (APA). The government failed to publish the rule creating the fund in the Federal Register, denying interested parties the opportunity for public notice and comment, which is legally required for such a significant policy change.
Allison Gill's lawsuit argues that the fund constitutes a federal rule that should have been published in the Federal Register, allowing for notice and comment under the Administrative Procedure Act. The absence of this procedure makes the fund procedurally defective. Katie Phang highlights the elegance of this procedural argument, stating that if the creation was flawed, the substance doesn't even need to be reached.
Lessons
- Monitor the ongoing legal proceedings in Judge Williams' courtroom regarding the alleged fraud and collusion in the fund's creation, as this could have broader implications for government accountability.
- Observe how political pressure from within Trump's own party influences his decisions, particularly regarding projects deemed politically unpopular or legally precarious.
- Analyze the different legal strategies employed in challenging the fund (procedural, substantive, constitutional) to understand effective multi-pronged approaches against controversial government actions.
Quotes
"Senate Republicans were so pissed about this fund that they failed to fund ICE, their favorite Gestapo, and Customs and Border Protection before going going on Memorial Day break, blowing up Trump's June 1st deadline to sign the reconciliation bill."
"They don't care that we're stealing American taxpayer money. We're just worried about how badly the optics are going to be for us when we're trying to go and explain that to our constituents who are dot dot dot American taxpayers."
"You can't rewind and undo your fraud on the court. That can still be investigated, can it not?"
"You don't necessarily have to go straight to substance. You can start with procedure. And procedure's clean. If under the APA and under federal law, the Trump administration was required to give the opportunity to you as a possible claimant to be able to have a notice and comment period, and it says it very cleanly on its face that that is what is supposed to happen, the absence of following a procedure can make it defective."
Q&A
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