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AP reports judge left National Council of Nonprofits’ challenge to the alleged $1.8 billion “anti-weaponization fund” unresolved

Associated Press reported that a federal judge did not rule at a September 18 hearing on the government’s request to dismiss litigation challenging a proposed $1.8 billion compensation fund. The government said the plan had been abandoned, but the judge reportedly was not persuaded that this necessarily ended the dispute. Counsel for the plaintiffs argued that the government could revive the mechanism in its current form or another form. The report did not establish that any payment had been made or that the proposed fund was unlawful.

Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.

Donor relevance

Why this matters

The hearing materially updates the case’s posture: the announced fund had reportedly been rescinded, but the court had not dismissed the challenge. Donors should not interpret the rescission as a final judicial resolution or the hearing as a ruling on the merits.

Attribution

Who reported or established this

Associated Press reported the hearing and the judge’s response to the government’s dismissal argument. Democracy Forward attorney Pooja Boisture presented the plaintiffs’ position that a similar mechanism could return.

Evidence limits

What remains unverified

No Halo has not established that the proposed fund was unlawful, that it will be revived, that any claimant received money, or how the judge will rule on dismissal or the underlying claims.

Right of reply

Organization response

Counsel representing the plaintiffs argued that the dispute remained live because the government could revive the fund or create a similar mechanism. No separate response from the National Council of Nonprofits was located in the consulted material.

Classification

How No Halo records this event

Event type: Other Material Event. Current state: Pending. No Halo preserves the current procedural state rather than treating every mention as a finding.

Published September 18, 2026 · Last verified September 22, 2026. See an error or a later outcome? Submit a correction or right of reply.