US judge extends block on Trump’s $1.8bn ‘anti-weaponisation’ fund

A U.S. judge on Tuesday extended a preliminary injunction blocking the Trump administration's "anti-weaponization" fund, which was intended to seize assets from companies that violated sanctions against Iran. The Department of Justice had initially proposed the fund in October 2023, aiming to redirect approximately $1.8 billion in assets to a fund for victims of state-sponsored terrorism. This plan faced significant opposition from lawmakers and legal challenges, prompting the Justice Department to withdraw its proposal in December 2023. The judge's decision to extend the injunction, issued by U.S. District Judge Carl Nichols, prevents the government from accessing these frozen assets for now. The initial lawsuit was filed by the National Iranian American Council and other plaintiffs who argued the fund would violate due process rights and international law. The Justice Department's reversal followed a meeting with members of Congress who expressed concerns about the legality and implications of the proposed fund. The frozen assets were originally seized from Bank Melli Iran and other Iranian entities.