DOJ's agreement with President Donald Trump to bar future audits into his or his family's past tax records will remain.
The justice department says it "disagrees strongly" with a court decision to halt the establishment of the fund.
The announcement comes after Trump met with congressional Republicans over concerns about his settlement with the IRS.
The nearly $1.8bn fund stemmed from a recent IRS settlement with Donald Trump over his leaked tax records.
Democrats argue that the fund will be used to compensate January 6 rioters pardoned by Trump.
Officers Harry Dunn and Daniel Hodges say the fund will likely be used to 'reward' rioters who attacked the US Capitol.