Cannon said in her ruling Monday that the Justice Department "could reallocate funds to finance the continued operation of Special Counsel Smith's office," but said it's not yet clear whether a newly-brought case would pass legal muster.
"For more than 18 months, Special Counsel Smith's investigation and prosecution has been financed by substantial funds drawn from the Treasury without statutory authorization, and to try to rewrite history at this point seems near impossible," Cannon wrote. "The Court has difficulty seeing how a remedy short of dismissal would cure this substantial separation-of-powers violation, but the answers are not entirely self-evident, and the caselaw is not well developed."
She noted in her ruling that Smith's team "suggested" at a court hearing on the matter that they could restructure the office's funding to satisfy her concerns.