US Capitol police officers challenge $1.8 billion settlement fund over fears Jan 6 rioters could get payouts

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The lawsuit marks a fresh legal and political flashpoint over how the fund will be administered — and who may ultimately benefit from it.

 Al Drago/BloombergThe US Capitol in Washington, DC, US, on Wednesday, May 20, 2026. Photographer: Al Drago/Bloomberg(Bloomberg)

Two police officers who defended the US Capitol during the January 6, 2021 attack have filed a federal lawsuit seeking to block payouts from a new $1.776 billion settlement fund created to compensate people claiming they were victims of politically motivated prosecutions.

The lawsuit marks a fresh legal and political flashpoint over how the fund will be administered — and who may ultimately benefit from it.

Who filed the lawsuit

The plaintiffs are:

-Metropolitan Police Department officer Daniel Hodges

-Former US Capitol Police officer Harry Dunn, who is also running for Congress in Maryland

Both officers were on duty during the Capitol attack and previously testified before Congress about their experiences, including violent confrontations with rioters.

What they are challenging

The officers are asking a federal court to block the distribution of funds from what is formally described as an “Anti-Weaponization Fund.”

They argue the fund:

-Has no legal basis under federal law

-Was created through a “corrupt” settlement process

-Could be used to benefit individuals involved in the January 6 attack

-Violates constitutional limits on executive authority

Their lawsuit calls the fund an illegal “slush fund” and demands that it be dissolved entirely.

Concerns over possible Jan 6 payouts

A central concern raised in the lawsuit is the possibility that individuals who participated in the Capitol riot could receive compensation.

The complaint follows comments from acting Attorney General Todd Blanche, who did not rule out that Jan. 6 defendants could be eligible for payouts under the program during a congressional hearing.

The officers argue this creates a dangerous contradiction: people who assaulted police officers could potentially be rewarded by the same system.

It is intended to compensate individuals who claim they were unfairly targeted or harmed by prior Justice Department actions, particularly under previous administrations.

A five-member commission appointed by the attorney general will oversee decisions on payouts.

Allegations of political misuse

In their filing, Hodges and Dunn argue the fund could be politically exploited.

They claim it may:

-Encourage violence carried out “in the President’s name”

-Increase threats against law enforcement officers

-Be used to financially support individuals aligned with politically motivated attacks

The lawsuit also states that both officers already face ongoing threats and that the fund could worsen their security risks.

The case comes amid continued national debate over the January 6 attack and its aftermath.

More than 100 police officers were injured during the riot, and around 1,600 people were charged in connection with the events. Many of those cases were later wiped out following pardons issued by Trump.

The lawsuit also names Treasury Secretary Scott Bessent and Attorney General Todd Blanche as defendants.

(With AP inputs)

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