Trump Quickly Gets Nightmare News in $1.776B Case

Summary

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Legal AF by MeidasTouch

Episode: Trump Quickly Gets Nightmare News in $1.776B Case

Date: May 26, 2026
Host(s): Ben Meiselas, Michael Popok, Karen Friedman Agnifilo

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Overview

This episode of Legal AF dives into the explosive legal and political ramifications of the recently revealed $1.776 billion Trump “slush fund”—a fund at the center of lawsuits and national outrage. The hosts analyze the controversy over who can access the fund, the emerging legal challenges (most notably from two former Capitol Police officers), the assignment of a crucial judge, and the larger stakes regarding law, democracy, and public funds in a politically charged climate.

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Key Discussion Points & Insights

The Trump "Slush Fund" Controversy (00:30–04:38)

• Backdrop: The fund, supposedly a settlement from a Trump IRS case, is exposed as a means for Trump and allies to escape $100 million in tax/audit liability. Now, it’s drawing concern for potentially funneling federal dollars to extremist groups and convicted criminals.
• Political Fallout: Democrats are scrambling to stop the fund; even Republican support for it is evaporating due to its association with white supremacists and insurrectionists.
• Key Players:
  • Extremist applicants: Known figures like Enrique Tarrio (Proud Boys) and various white nationalist groups are openly discussing applying for money.
  • Todd Blanche: Trump’s lawyer, under fire for comments suggesting even violent offenders might be eligible for the fund.
• Lawsuit Filed: Former Capitol Police officers Harry Dunn and Daniel Hodges—represented by Brendan Ballou and the Public Integrity Project—file the first lawsuit to halt the fund's operation.

Lawsuit Assigned to Judge Richard Leon – "The Ballroom Judge" (04:38–05:21)

• Significance: Judge Leon, a George W. Bush appointee with a reputation for independence and high-profile rulings against Trump’s prior overreaches, is seen as a pivotal figure in shaping the fund’s legal fate.
• Reactions:
  • Brendan Ballou (CEO, Public Integrity Project):

    "I think [Judge Leon] is really outraged by a lot of the recent illegal actions...he’s going to understand the real physical dangers that a fund like this creates for our clients." (04:55)

Judge Leon’s Track Record & the Stakes (05:21–08:14)

• Judge Leon's history:
  • Known for “ballroom opinions” (re: a controversial Trump-backed White House ballroom project) and for blocking Trump’s attempts at political retaliation via the DOJ.
• Legal Questions in Play:
  • Constitutionality of the fund
  • Potential violations of federal statutes
  • Administrative Procedures Act scrutiny
• Crossroads: Host Michael Popok anticipates more suits and stresses Judge Leon’s preparedness for such a high-stakes case.

Political Testimonies and Congressional Exchange (08:14–09:41)

• Senator Van Hollen Grills Todd Blanche:
  • Powerful congressional questioning exposes the fund’s lack of eligibility safeguards and potential for abuse.
  • Blanche tries to evade, but Van Hollen pushes on violent offenders’ eligibility:

    Sen. Van Hollen: "Will individuals who assaulted Capitol Hill police officers be eligible for this fund?" (08:36)
    Todd Blanche: "Anybody in this country is eligible to apply if they believe they were victim weapons." (08:54)

    • Van Hollen demands stronger rules, suggesting criminal conviction should bar individuals from taxpayer support.

Broader Political Implications & Declining GOP Support (09:41–10:41)

• GOP & Public Opinion: Even Republican senators now sidestep support for the fund, especially amid economic hardship and recent defeat of Trump’s $1B ballroom project in the Senate.
  • Host observation:

    "There’s no political will for this…to be bestowing on President Trump $1 billion for a ballroom or 1.76 billion for the White nationalist terrorist paramilitary funding slush fund…" (09:41)

Todd Blanche on CNN – Public Backpedaling (10:41–11:22)

• Blanche Attempts Damage Control: Under media scrutiny, Blanche acknowledges the abhorrence of attacking law enforcement but maintains that eligibility is broad, reiterating applicants only need to claim victimization.
  • Quote:

    "It's abhorrent to ever, ever touch a law enforcement officer...But that's a completely different question with whether an individual is allowed to apply to for a claim." (10:45)

Lawsuits, Constitutional Issues & Legal Predictions (11:22–13:28)

• First Lawsuit Scope: The Dunn/Hodges suit leans on the 14th Amendment but doesn’t reach the Emoluments Clause—future lawsuits are expected to broaden the challenge.
• Host Prediction: At least two additional lawsuits, each with their own judicial assignments, are expected imminently.
• Call to Action: Listeners are encouraged to follow the rapid developments via Legal AF’s content channels.

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Notable Quotes & Memorable Moments

• “If you gave all these extremists, radical white nationalists and others the money, you'd have to have a fund that was 10 times the size… Funding of terrorist organizations is exactly the point of the lawsuit.”
  — Michael Popok (02:40)

• “Judge Leon is, you know, a Republican appointed judge… but also has a true independence streak, and I think is really outraged by a lot of the recent illegal actions.”
  — Brendan Ballou (04:55)

• “This is not the time when people are concerned about affordability… to be bestowing on President Trump $1 billion for a ballroom or 1.76 billion for the White nationalist terrorist paramilitary funding slush fund…”
  — Michael Popok (09:41)

• “It's abhorrent to ever, ever touch a law enforcement officer, which is why…if anybody does that and it's a federal officer, we'll prosecute them. But that’s a completely different question with whether an individual is allowed to apply to for a claim.”
  — Todd Blanche (10:45)

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Important Timestamps

• 00:30–04:38: Host intro to the Trump slush fund, extremist applicants, and first lawsuit.
• 04:38–05:21: Brendan Ballou on case assignment and Judge Leon’s character.
• 05:21–08:14: Deep dive into Judge Leon’s track record and legal context.
• 08:14–09:41: Congressional cross-examination of Todd Blanche by Sen. Van Hollen.
• 09:41–10:41: Update on public and Republican opposition, tie-in to failed ballroom funding.
• 10:41–11:22: Todd Blanche attempts to clarify eligibility on CNN.
• 11:22–13:28: Next legal steps, constitutional grounds and host predictions.

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Conclusion

This episode provides a sharp, detailed look at the intersection of legal process, political maneuvering, and civil society in the wake of an unprecedented and widely condemned fund tied to the former president. With the legal landscape shifting quickly, the hosts and expert guests chart what’s at stake for public accountability, the rule of law, and the American political system as these high-profile challenges progress.

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Transcript

[A]

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[B]

As a long line of MAGA white supremacist and extremist groups and terrorist organizations and those convicted of seditious conspiracy against the United States line up with their hands out to get money from Donald Trump's slush fund as the Democrats work overtime in the House and the Senate to try to block Donald Trump's slush fund, created unconstitutionally and illegally in part of the settlement with his phony IRS case, which now turns out to be nothing more than a smokescreen for what he really wanted to accomplish, which is to have $100 million of tax exposure and liability and audit liability disappear as part of the settlement against himself and his family. Now we've got. Well, let's just put that the White House is reconsidering the aspects of the fund because there seems to be no political will, no Republican support, no popular support for this depraved slush fund. And now you've got people like Todd Blanch going back on television and thinking better of having told the American people during his Senate appearance this week that, well, if the people who attack the police or convicted child sex traffickers or abusers want to apply for the money, there's nothing we can do about it. That seems to be even a bridge too far for most people. I just had the distinct pleasure of interviewing for Legal AF in the Midas Touch Network. Brendan Ballou, the CEO of Public Integrity Project, who brought now what is the first lawsuit against the Trump slush fund brought by his clients, two former Capitol Police officers, Harry Dunn and Daniel Hodges. And they are now have that case has now been assigned. Wait till you wait for it with to Judge Leon, right, Richard Leon, the George W. Bush appointee who's the ballroom judge who knows who knows his way around being misled by the Trump administration. I cover it all here on the Midas Touch Network. And for Legal af, let's get down to the story. Case by Public Integrity and the Public Integrity Project gets filed. They anticipate exactly what is happening now, which is people lining up extremist groups, Enrique Tarrio, the proud boys saying, I won't be greedy. You know, one network or oe or oan network lining up for money. I mean, if you. If you gave all these extremists, radical white nationalists and others the money, you'd have to have a fund that was 10 times the size and funding of terrorist organizations is exactly the point of the lawsuit that this fund finances insurrectionists and paramilitary groups to. Just in time for the midterms. And this case has now been assigned. It's the only case right now. There's gonna. There's going to be more, I assure you. But the only case right now on the docket is Harry Dunn and Daniel Hodges versus Donald Trump, Todd, Blanche, Scott Bessant, to stop the fund and put it out of its misery. Put it out of our misery. And I had the distinct honor of interviewing Brendan Ballou after we all found out that Judge Leon of the Ballroom fame had been assigned to the case. And here's a clip. Let's do some inside baseball because our audience really enjoys that even though most of them are not lawyers, but they certainly like being here at the intersection of law and politics. You've got your judge assignment. It looks like it's Judge Richard Leon, who's. For those that follow legal a, which they do. He's the Ballroom judge. He of many exclamation marks. When is your first. When do you think you'll be in court with Judge Leon?

[C]

Yeah, we don't have a status conference yet, but, you know, standard civil procedure. I imagine the Department of Justice is going to file a motion to dismiss, as they always do. So that's, you know, when the ball really starts rolling. I think, you know, we're in a fortunate situation in that Judge Leon is, you know, a Republican appointed judge, I think, has conservative bona fides, but also has a true independence streak, and I think is really outraged by a lot of the recent illegal actions. The Ballroom example is a great one. And so I think he's going to understand, especially as a judge that has served in the District of Columbia and has handled These sort of January 6th cases in the past, I think is going to understand the real physical dangers that a fund like this creates for our clients.

[B]

Now, what we're fearful of is what you just heard, that Trump is trying to rearm and fund a paramilitary organization to do his bidding, his. His beck and call for the midterms and for the 2028 election, and he's arming them and funding them with your and my taxpayer dollars. Now, let's talk about Judge Leon for a moment. Judge Leon famously wrote during his ballroom opinions in the case that he did not believe the White House or the Trump administration did not believe that national security was at risk because of a excavation pit created by Donald Trump where the East Wing used to sit and for the ballroom, and wrote many things in his order that were effectively rhetorical, eye rolling with lots of exclamation marks. Now, his order has been blocked while the appellate court gets their arms and minds around the appeal. And so construction below ground of the ballroom continues. But right on cue. And that's not the only case he's handled that has prepared him for this moment to be the judge in charge of whether this fund goes forward or not, whether it's unconstitutional, whether it's violating of statutes, whether it violates the Administrative Procedures Act. Because he's also handled cases where Donald Trump's gone after and weaponized the Department of Justice and his own administration to try to take law firms that he didn't like, that hired people he didn't like or his perceived political enemies or refused to represent. Donald Trump tried to blackmail them and blackball them to cut off their ability to appear in front of the federal government, represent clients or represent the federal government, cutting their revenue in half. Judge Leon, along with Amy Berman Jackson, along with Judge Beryl Howell, all collectively said no to that and that they were not going to allow it. And that looks like it's going to be affirmed on appeal based on a recent oral argument. So Judge Leon is prepared. I think he's the perfect judge for this case and we're going to continue to follow it there. At the same time, the Trump administration is trying to figure out how to do backflips and get away from Todd Blanche, not committing to having people who abuse the police being able to apply to the fund. Here's Van Hollen, Senator Van Hollen cross examining Todd Blanch to within an inch of his life just earlier this week. Play the clip.

[D]

You're his former personal attorney and you know exactly what he wants. In fact, he often posts it right here on social media, his Truth Social account. He wants to weaponize the department for his own political ends. And right from the start, you and your cohorts have worked to deliver what he wants, doing his political dirty work. This is an outrageous, unprecedented slush fund that you set up. Simple question, will individuals who assaulted Capitol Hill police officers be eligible for this fund?

[E]

Well, as it makes plain, anybody else

[D]

just Let me know if they're eligible for the fund.

[E]

As was made plain yesterday, anybody in this country is eligible to apply if they believe they were victim weapons.

[D]

Mr. Attorney General, let me ask you this. Are there going to be rules that say that if you've assaulted a Capitol Hill police officer or committed a violent crime, you will not be eligible? Why not make that a rule?

[E]

I expect that. Well, because I'm not one of the commissioners setting up the rules.

[D]

You're appointing four of the five members, aren't you, Mr. Attorney General?

[E]

Pardon me?

[D]

You're appointing four of the five Members.

[E]

I am appointing all five.

[D]

Set up the rules. I would hope you would make a rule that anyone convicted of assaulting a police officer of violent crime is simply not eligible. They should not apply. Do you know that it is a criminal offense to lie to Congress?

[E]

I am very well aware of that.

[B]

Well, now that Congress and the Senator, the Republicans look like they don't support the fund either. And put right next to that, that the Ballroom $1 billion funding was just killed by the Republicans in the Senate. What do you think they're going to do with this fund? This is not the time when people are concerned about affordability. They can't pay rent. They can't pay for healthcare. They can't pay for gas at the gas pump or food at the supermarket to be bestowing on President Trump $1 billion for a ballroom or 1.76 billion for the White nationalist terrorist paramilitary funding slush fund, or to let Donald Trump and his family out from $100 million with a tax exposure. There's no political will for this. So now you have Todd Blanche trying to fix it on cnn. Play the clip.

[E]

You're the nation's top law enforcement official right now. Would you be okay with people who were convicted of hurting police getting taxpayer money? Just to be clear, people that hurt police get money all the time. Okay. There's a process where if you believe you have your rights violated, you can apply for funds, you can sue, you can file a claim, you can go to court. In some of those cases, the state, the government, the federal government settles those cases. It's abhorrent to ever, ever touch a law enforcement officer, which is why anytime anybody does that and it's a federal officer, we'll prosecute them. But that's a completely different question with whether an individual is allowed to apply to for a claim.

[B]

There's going to be a lot of developments in the first lawsuit that's been filed. Status conference will be coming up soon with Judge Leon and I'm assuming today or tomorrow, certainly before Memorial Day, there will be one or two additional lawsuits that will be filed against the Trump slush fund. This lawsuit, brought by Dunn and Hodges, brought by Public Integrity Project, does not touch the constitutional issues, really. I mean, it talks about the 14th Amendment and how you can't pay the debts of insurrectionists. That's a good one, but it doesn't get to the heart of the emoluments clause that prevents a president from taking a benefit, a gift, a commission, a economic value in addition to his salary paid during the year that will be addressed by other suits. I predict there'll be at least two other lawsuits that will be filed with different judges, all trying to obtain the same thing, which is to have the Weaponization fund put out of its misery. I'll follow it all right here on Midas. Touch it on Legal AF until my next report, come over to Legal AF YouTube channel 12 fresh videos every day and our Legal AF substack as well. Until then, I'm Michael Popak. Can't get your fill of Legal af? Me neither. That's why we formed the Legal AF substack. Every time we mention something in a hot take, whether it's a court filing or a oral argument, come over to the substack. You'll find the court filing and the oral argument there, including a daily roundup that I do called Wait for It Morning af. What else? All the other contributors from Legal AOF are there as well. We got some new reporting, we got interviews, we got got ad free versions of the podcast and hot takes where Legal AF on Substack. Come over now to free subscribe

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