Trump DOJ agrees to new Michael Flynn payout as allies make bank without ‘slush fund’ – Raw Story
Trump's administration reached a second settlement with retired Lt. Gen. Michael Flynn, agreeing to pay him approximately $38,557 that the Army had withheld from his retirement over a 2015 speaking fee from Russia Today, a Russian state-owned media outlet. Flynn had challenged the withholding, claiming the Pentagon's Defense Finance and Accounting Service violated his rights when it determined he violated the Emoluments Clause by receiving compensation from a foreign government without required approval. The settlement, reported below $75,000, follows Flynn's much larger $1.25 million payment in March to resolve claims of politically motivated prosecution, despite his 2017 guilty plea for lying to the FBI about contacts with a Russian diplomat.
The pattern of payouts to Trump allies continues despite the administration's abandonment of a proposed $1.8 billion "anti-weaponization" fund that would have systematized such payments. The fund, created from a settlement of Trump's personal IRS lawsuit, drew bipartisan opposition and was blocked by a federal judge. Senate Minority Leader Chuck Schumer demanded legal bans on such payments, stating Trump's commitment to halt them was insufficient. Yet the Flynn settlement demonstrates the administration continues compensating allies through individual lawsuits rather than a centralized mechanism.
Flynn is not alone among Trump associates receiving government payouts under this administration. The family of Ashli Babbitt, killed by Capitol Police during the January 6 riot, was awarded $4.975 million in 2025. Former Trump campaign adviser Carter Page received $1.25 million in April for claims related to FBI surveillance. Each settlement compensates individuals the Trump administration frames as victims of government "weaponization," a characterization contradicted by documented facts including Flynn's guilty plea and Babbitt's participation in the Capitol breach.
Flynn's latest case is not concluded, with the parties required to file another status report by July 27, 2026, or abandon the suit according to court filings. The Justice Department stated it would comply with the federal judge's ruling blocking the broader fund, yet these individual settlements accomplish the same outcome without the transparency or statutory restrictions a formalized fund would require. The pattern reflects Trump's use of litigation settlements and direct payments to reward loyalists while circumventing legal oversight.
(Source: https://www.rawstory.com/michael-flynn-second-settlement/)