The Trump administration is scrapping plans for a $1.8 billion fund that would have compensated allies of the Republican president, acting Attorney General Todd Blanche said on Tuesday. This retreat comes after the administration faced fierce political backlash that had threatened to stall key elements of the White House agenda.
“We are not moving forward with the fund, period,” Acting Attorney General Todd Blanche said in response to questions at a House hearing on the Justice Department budget.
“Not moving forward ever?” asked Rep. Grace Meng, a New York Democrat.
“Correct,” Blanche answered.
This blunt declaration marked an extraordinary and rare turnabout by the Trump administration. It comes in the face of mounting political opposition to a fund that officials said was meant to compensate people who believe they have been improperly targeted by the criminal justice system.
Since the establishment of the fund two weeks ago, it’s been halted by a judge and lambasted by Democrats and Republicans alike, who said they were troubled by a lack of oversight and the potential for payouts to participants in the violent Jan. 6, 2021, riot at the U.S. Capitol.
The $1.776 billion “Anti-Weaponization Fund” was established last month to resolve Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns. The Justice Department had said it was an appropriate measure to correct what officials have insisted was the weaponization of federal law enforcement during the Biden administration, when Trump faced criminal charges and several of his allies were investigated and prosecuted.
| The Scrapped Anti-Weaponization Fund | |
|---|---|
| Category | Details |
| The Event | The Trump administration has officially abandoned plans to create the highly controversial $1.8 billion "Anti-Weaponization Fund." |
| The Confirmation | Acting Attorney General Todd Blanche testified before a House appropriations subcommittee, stating that the Justice Department is "not moving forward with the fund, period." |
| The Catalyst | The initiative faced fierce bipartisan backlash from Congress and was recently temporarily blocked by a federal judge in Virginia. Lawmakers raised concerns that it would act as a loosely controlled "slush fund" to compensate political allies and Jan. 6 rioters. |
| The Catch | Despite scrapping the payout fund, Blanche confirmed the DOJ will keep a separate settlement provision that permanently bars the IRS from auditing the past tax returns of President Trump, his family, and related business entities. |
| The Origin | Both the fund and the audit immunity clause were originally established last month as part of a settlement to resolve Trump’s $10 billion lawsuit against the IRS and Treasury Department over the illegal leak of his tax returns. |
If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.
Discover more from Pinch News
Subscribe to get the latest posts sent to your email.
Spelling error report
The following text will be sent to our editors: