The DOJ also claims there is precedent for this type of fund, saying it’s similar to the Obama-era "Keepseagle" case. In reality, the fund seems to have little legal basis.
As Mike Masnick wrote for Techdirt, the fund was created as a settlement offer because “Trump needed to drop that lawsuit in order to end it before a judge called bullshit on the fact that he was negotiating with himself to take $10 billion from American taxpayers.”
Masknick also refuted the DOJ claims of legal precedent, writing, “The Keepseagle settlement was approved by a court in response to a class action lawsuit. Here, this fund, is being created in a manner deliberately to avoid having the court review it.”
A New York Times piece reported that “legal experts struggled to make sense of this week’s developments, saying tentatively that it was unlikely anyone could sue to stop the moves.” The article noted nevertheless that the fund’s creation is a “jarring shock to the conventional understanding of the constitutional system.”
Reuters quoted Tax Law Center policy director Brandon DeBot calling the fund a “breathtaking abuse of the tax and legal system" and Sen. Ron Wyden (D-OR) calling it a “slush fund” that represented “a stunning act of corruption.”
Some Republican lawmakers have spoken out against the fund, such as Senate Majority Leader John Thune, who said he doesn't “see a purpose” for it, and others seem bothered by the lack of details surrounding where the money might go. “I’ve got more questions than I’ve heard answers for,” said Sen. Lisa Murkowski (R-AK).
January 6 Capitol Police Officers have sued to block the fund on the grounds that it violates the 14th Amendment's prohibition on using federal funds for “any debt or obligation incurred in aid of insurrection or rebellion against the United States.”
Even a few right-wing media voices have been lightly skeptical of the move.
On Fox's Special Report, guest anchor Trace Gallagher admitted that “who gets the money and where it comes from is a bit unclear.”
Special Report's reporting on the topic also included clips of Sens. John Kennedy (R-LA) and Jerry Moran (R-KS) asking for clarity on where the money is coming from and “the legality of creating a fund that Congress hasn't had anything to say about.”
The Daily Wire's Ben Shapiro touched on the matter, saying on his show, “I'm generally against slush funds, to be clear. I do not like them. I think there are other ways of pursuing redress for grievances in this fashion. However, many of the myths that you're hearing about it are overstated.”
Megyn Kelly said on her podcast about the fund, “I don't like it,” explaining that she'd rather see individual suits. But she also made false correlations between this move and Obama's Keepseagle fund, saying, “This was created by Barack Obama,” and, “The same media that's now ripping Trump to shreds for doing it said nothing, nothing when Barack Obama started it. … So I really have no tolerance for their cries and protestations about what Trump is doing.”
Already, January 6 rioters, election deniers, and Trump allies are lining up for a chance at the taxpayer money.