A rare revolt within Donald Trump’s own political party has forced him to abandon a $2.5 billion plan that critics derided as a “slush fund” for his allies. The US government has shelved the contentious $US1.8 billion “anti-weaponisation” fund, which would have directed taxpayer money to individuals Trump claimed were unfairly targeted by law enforcement under the Biden administration. The fund was announced last month as part of an unusual settlement between the President and the government he oversees.
‘It’s dead for now’
“It’s dead for now,” a senior Trump administration official told Axios today, minutes before the US Department of Justice released a statement confirming the backdown. The abrupt reversal followed two weeks of defiance from both Trump and acting Attorney General Todd Blanche, who previously served as Trump’s personal lawyer.
Origin of the fund
The fund originated from a $US10 billion lawsuit filed by Trump and his sons, Donald Jr. and Eric, against the government in January. They argued that the Internal Revenue Service failed to protect their privacy when a contractor leaked Trump’s tax information during his first term. Trump had refused to release his tax returns during the 2016 campaign, and the leak revealed he paid remarkably little tax despite his wealth. The leaker was prosecuted and imprisoned. Trump’s lawsuit seemed destined to fail in court, but last month, in exchange for dropping the case, his Justice Department agreed to a settlement with unusual concessions.
The settlement created a fund of exactly $US1.776 billion—a reference to 1776, the year of American independence—to compensate people harmed by what it called the “weaponisation” of law enforcement. Trump has long claimed the Biden administration unfairly targeted him and his supporters for political reasons, describing those prosecuted for the January 6, 2021 Capitol attack as “political prisoners” before pardoning them en masse last year.
“We lived through four years of unimaginable weaponisation of the government against innocent people,” Trump’s Deputy Chief of Staff Stephen Miller argued in defence of the fund. “So many lives destroyed, so many livelihoods ruined, so many people who were deprived of their fundamental rights and freedoms. This settlement is just a small measure of the justice they are owed.”
Additionally, Blanche announced the government would be forever barred from investigating the past tax affairs of Trump, his family, and their businesses. There was no precedent for such a move.
Republican revolt
Although Trump’s Republican Party controls both houses of Congress and typically supports the President, this time they rebelled. When the settlement was announced, Republican senators and members of Congress quickly expressed alarm, particularly about the $US1.8 billion fund. Some criticised it publicly, while “dozens” opposed it behind the scenes.
“So the nation’s top law enforcement official is asking for a slush fund to pay people who assault cops?” former Senate leader Mitch McConnell said in a harsh statement. “Utterly stupid, morally wrong. Take your pick.” Senator Thom Tillis called it “stupid on stilts,” while Congressman Don Bacon said the settlement “smells,” noting Trump was both “the plaintiff and the boss of the defendants.” Senator Ron Johnson, a reliable ally, described it as a “galactic blunder.”
Blanche was summoned to a closed-door meeting with the Republican caucus, which grew tense. Multiple Republicans demanded a guarantee that no public money would go to people convicted of violent crimes; Blanche could not provide it. “I do not support the weaponisation fund as it has been described,” Senator Susan Collins said. “I do not believe individuals that were convicted of violence against police officers on January 6 should be entitled to reimbursement.”
To demonstrate displeasure, Republicans refused to pass a $US72 billion funding bill for Trump’s immigration policies—a high priority—delaying the vote until after a weeks-long recess. That recess ended, but the obstacle remained. Senate leader John Thune emerged from a caucus meeting saying the bill would not pass without changes to the fund. Speaker of the House Mike Johnson was reportedly planning to raise the issue with Trump.
Justice Department backs down
The Justice Department then announced the fund’s abandonment, citing a court ruling in Virginia that temporarily blocked it. On Thursday, Judge Leonie Brinkema barred the government from taking further action to create or operate the fund while a lawsuit challenging its legality was pending. She specified no money could be transferred, claims considered, or disbursements made. Separately, Florida Judge Kathleen Williams ordered the administration to respond to a motion by 35 former federal judges arguing the settlement was “a fraud on the court.” They echoed Bacon’s point that Trump was effectively both plaintiff and defendant, making the case “never an adversarial proceeding.”
“This ‘settlement’ is a product of collusion,” they wrote. Judge Williams ordered the government to respond by June 12. The Justice Department referred to the Virginia ruling in its statement, saying it “disagrees strongly” but will abide by the court’s decision. When asked if the fund would return, Thune said, “That would be the ideal outcome.”
