E. Jean Carroll
A federal judge ordered that the roughly $5.8 million held in escrow be released to E. Jean Carroll. julieannesmo/Wikimedia Commons

Donald Trump has suffered another setback in his legal battle with E Jean Carroll after a federal judge ordered that the roughly $5.8 million (approximately £4.4 million) held in escrow be released to her. The ruling comes just days after the US Supreme Court declined to hear Trump's appeal of the 2023 civil verdict, effectively removing the final barrier preventing Carroll from receiving the money. Trump immediately launched another appeal, but the funds are now set to leave the court-controlled account.

The order transforms what had been a symbolic courtroom victory into a tangible financial one. For Carroll, it marks the first time she is poised to receive compensation from a case that concluded with a jury finding Trump liable for sexually abusing and later defaming her. The payment includes the original $5 million (approximately £3.8 million) award plus accrued interest, bringing the total to approximately $5.8 million (£4.4 million).

Why the Court Ordered the Escrow Money Released

The funds had been sitting in a court-controlled escrow account since Trump appealed the May 2023 jury verdict. Under federal rules, posting the money ensured Carroll would eventually be paid if Trump's appeals failed while allowing him to delay payment during the appellate process.

That process largely ended when the Supreme Court refused to review Trump's appeal in late June. With no further automatic barriers remaining, Judge Lewis Kaplan granted Carroll's request to release the money, concluding that the conditions agreed upon when the funds were deposited had been satisfied.

Trump's lawyers argued the money should remain frozen while they seek a Supreme Court rehearing. They claimed releasing the funds now could cause 'irreparable harm', particularly because Carroll has previously indicated she intends to donate much of the award. If Trump somehow succeeded in a future appeal, recovering the money could prove difficult, they argued.

Why Trump's Latest Appeal Faces an Uphill Battle

Trump wasted little time filing another appeal after Judge Kaplan's order. However, legal observers note that overturning the release order could be considerably more difficult than previous stages of the case because the Supreme Court has already declined to review the underlying verdict. Courts generally treat such decisions as signalling that the normal appellate process has concluded.

Carroll's attorney, Roberta Kaplan, argued that Trump had reached 'the end of the line' and that there was no legal reason to continue delaying payment. Her filing maintained that the escrow arrangement anticipated exactly this scenario once appeals had been exhausted.

A Case That Has Reshaped Trump's Legal Challenges

The payment stems from a landmark civil trial in 2023. Jurors concluded that Trump sexually abused Carroll inside a Manhattan department store dressing room in the mid-1990s and later defamed her after she publicly accused him decades later. Although the jury did not find Trump liable for rape under New York's legal definition, it awarded Carroll $5 million (£3.8 million) in damages.

Trump has consistently denied both the assault and the defamation allegations, insisting he never met Carroll in the manner she described and characterising the lawsuits as politically motivated attacks.

The $5.8 Million Fight Is Only One Part of a Much Bigger Legal Battle

Even after Carroll receives the escrow money, Trump's legal exposure in her lawsuits will not end. He is separately appealing an $83.3 million (approximately £63 million) defamation judgment awarded in 2024 after another jury found that he continued attacking Carroll despite the first verdict. That judgment remains tied up in separate appellate proceedings and involves substantially larger financial stakes.

The contrast between the two cases is important. While the $5.8 million (£4.4 million) award has effectively cleared its final appellate hurdle, the larger verdict still faces ongoing legal review, meaning Trump's broader dispute with Carroll is far from over.

Whether Trump's latest appeal succeeds or not, Wednesday's order represents another pivotal moment in one of America's most closely watched legal battles.