A federal judge on Friday temporarily blocked the Trump administration from moving forward with a controversial $1.776 billion compensation fund created as part of President Donald Trump’s settlement with the Internal Revenue Service, marking the first major legal setback for a program already facing multiple court challenges.

U.S. District Judge Leonie Brinkema issued an order preventing the administration from transferring money into the newly created Anti-Weaponization Fund, reviewing claims or distributing payments until at least June 12, when the court is scheduled to hear arguments on whether the freeze should remain in place. The judge said she wanted to explore whether the settlement was a “fraud” on the court.

The fund stems from Trump’s lawsuit against the IRS over the disclosure of his tax returns. The administration announced plans to use $1.776 billion from the settlement to compensate individuals who claim they were harmed by politically motivated government investigations or prosecutions.

The proposal immediately drew criticism from legal advocacy groups and lawmakers who questioned the fund’s legal foundation and whether people involved in the Jan. 6, 2021, attack on the U.S. Capitol could qualify for compensation.

According to the Justice Department, no claims have been accepted and no money has been distributed. The administration also has not yet appointed the five-member commission that would determine eligibility requirements.

In court filings, attorneys representing plaintiffs challenging the fund argued that the program represents political retaliation rather than legitimate compensation.

“President Trump and his allies have long accused Democrats of using the government and the legal system as political weapons,” plaintiffs’ lawyers wrote. “In doing so, the (Trump) administration fails to acknowledge the unprecedented campaign of targeting individuals and entities for retribution on personal and ideological grounds that it has carried out.”

Brinkema said it was necessary to preserve the status quo while the litigation proceeds and ensure that no funds are “irreversibly disbursed” before the court can fully review the legality of the program.

The Justice Department pushed back against the ruling. A department spokesperson said the administration is “extremely confident” the fund is supported “by ample precedent,” including settlement agreements reached under previous administrations.

“We will not allow the policy preferences of judges to interfere with our efforts to provide restitution to victims of lawfare,” the spokesperson said.

One of the plaintiffs challenging the fund is Andrew Floyd, a former federal prosecutor who handled Jan. 6 cases before being fired last year. Floyd alleges his dismissal was politically motivated and tied to his work prosecuting Capitol riot defendants.

In a court filing cited by the lawsuit, Floyd wrote: “The President’s targeting of me and others involved in January 6 prosecutions leaves our country in a very dark place, sending a message that insurrection and sedition will be protected (and even encouraged) as long as it is on behalf of this administration.”

The Virginia case is one of at least three lawsuits seeking to stop the fund. Another challenge, filed by the watchdog group Citizens for Responsibility and Ethics in Washington, describes the initiative as “a jaw-dropping act of presidential corruption.”

The legal battle is unfolding as questions continue to surround who may ultimately qualify for payments. During a recent congressional hearing, acting Attorney General Todd Blanche declined to rule out the possibility that individuals convicted in connection with Jan. 6 could seek compensation through the fund.

For now, Brinkema’s order keeps the money frozen and ensures the program remains on hold while courts determine whether it can legally move forward.