A major shake-up reportedly hit the Treasury Department this week after the agency’s top legal official resigned just as the Justice Department unveiled a controversial $1.8 billion “anti-weaponization fund” tied to claims of political targeting during the Biden administration.
Brian Morrissey, who served as Treasury Department general counsel for the past eight months after being nominated by President Donald Trump, stepped down Monday amid growing scrutiny surrounding the newly announced settlement process. Morrissey previously served as the Treasury’s principal deputy general counsel and once clerked for Supreme Court Justice Clarence Thomas.
A Treasury spokesperson confirmed the departure Tuesday in comments to The Hill.
“As General Counsel, Brian Morrissey has served the United States Treasury with both honor and integrity. We wish him all the best in his next endeavors,” the spokesperson said.
According to a resignation letter reported by The New York Times, Morrissey thanked both President Trump and Treasury Secretary Scott Bessent for the opportunity to serve.
The timing of the resignation immediately raised questions in Washington because it came just hours after the DOJ announced the creation of a $1.776 billion fund connected to Trump’s lawsuit against the Internal Revenue Service. The fund is designed to settle claims from Americans who argue they were unfairly targeted or harmed by the federal government during the Biden years.
Under the arrangement, the Treasury Department will oversee payouts into an account administered by individuals appointed by Acting Attorney General Todd Blanche.
In announcing the fund, Blanche framed the move as an effort to restore trust in government institutions after years of allegations that federal agencies were turned against political opponents.
“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” Blanche said.
He added that the administration was establishing “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
While the DOJ has not publicly detailed who may qualify for compensation, the announcement immediately drew attention because several individuals connected to the Jan. 6, 2021 Capitol riot currently have lawsuits pending against the federal government. That possibility is likely to intensify debate over how far the government should go in addressing claims of political persecution while also confronting the fallout from one of the most divisive episodes in recent American history.
The controversy highlights a broader political struggle over whether federal law enforcement agencies were improperly used during the Biden administration — an issue Trump and his allies have repeatedly emphasized. Critics of expansive government power have argued for years that Americans should not fear politically motivated investigations or prosecutions regardless of ideology. At the same time, the sheer size of the settlement fund and the legal structure surrounding it are already fueling fierce opposition from Democrats.
Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, blasted the settlement as unconstitutional and fraudulent.
“No one can be both plaintiff and defendant in the same case,” Raskin said. “And no president can concoct a fake case for $10 billion in damages against the government so he can be plaintiff and defendant and then ‘settle’ his bogus case against himself as a judge.”
“This is simply not a genuine case or controversy as required by the Constitution,” he continued. “But Trump’s DOJ is not arguing any of this because it is in on the scam.”
The DOJ has not yet responded publicly to those criticisms, leaving the future of the fund — and the political battle surrounding it — likely headed for an even more intense fight in the weeks ahead.
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