Fact Check: Did DOJ create a $1.7B taxpayer-funded compensation fund over Biden-era targeting claims?

WASHINGTON, DC: A viral claim circulating on social media alleges that the US Department of Justice is setting up a $1.776 billion fund using taxpayer money to compensate allies and individuals said to have been unfairly targeted by the Biden administration.

The reports, widely shared across platforms, also include additional details about the supposed compensation scheme. Here’s a closer look at the claim and what can be verified.

Claim: DOJ created $1.776 billion taxpayer-funded compensation fund

According to an X user, Pop Base, the DOJ has reportedly created a $1.776 billion taxpayer-funded compensation fund for individuals who claim they were unfairly targeted by the Biden administration.

The X post began by saying, "The Justice Department is creating a $1.8 billion compensation fund for people who claim they were unfairly targeted by the Biden administration."

It continued, "The fund, financed with taxpayer money, was created as part of a settlement in exchange for Donald Trump dropping his lawsuit against the IRS, where he sought $10 billion in taxpayer-funded damages."

The post concluded, "Sources claim that January 6th defendants could be included in those compensated."

Within hours of being shared online, the post amassed more than 1 million views, fueling controversy during Trump’s second term.

The timing of the claim, its reference to billions in taxpayer funds, and its focus on justice and government power intensified partisan debate. Reactions on X quickly reflected the growing polarization.

Fact Check: True, DOJ statement announces creation of $1.7 billion fund

While the claim surprised many online users and raised questions about its authenticity, it has been confirmed as true.

According to the DOJ, the Trump administration announced the creation of a $1.7 billion fund to compensate supporters of the president who claim they were mistreated by the Justice Department under the Biden administration.

The “Anti-Weaponization Fund,” totaling $1.776 billion, is part of a settlement resolving President Donald Trump’s lawsuit against the Internal Revenue Service over the alleged leak of his tax returns. It allows individuals who believe they were politically targeted for prosecution to apply for compensation.

Acting Attorney General Todd Blanche described it as “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”

Blanche also stated that government power should never be used against Americans for political reasons and said the Justice Department aims to correct past wrongs and prevent future abuses, without addressing concerns about politically driven investigations under the current administration.

Principal Associate Deputy Attorney General Trent McCotter shared in the statement, "The use of government power to target individuals or entities for improper and unlawful political, personal, or ideological reasons should not be tolerated by any Administration."