Trump drops $1.8B fund

Acting Attorney General Todd Blanche told House lawmakers on June 2 that the Justice Department was abandoning a proposed $1.8 billion “Anti-Weaponization Fund” that had drawn bipartisan criticism on Capitol Hill. The fund had been announced on May 18 as part of a settlement of President Donald Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns. Blanche said the department would not proceed after days of backlash from Republicans and Democrats and after a federal judge temporarily blocked the plan. The retreat left intact another part of the settlement — a bar on future audits of Trump’s or his family’s past tax records, according to Reuters. ### Where did the $1.8 billion fund come from? The Justice Department said on May 18 that the fund would be created as part of the settlement in *President Donald J. Trump v. Internal Revenue Service*. In its press release, the department said Trump, Donald Trump Jr., Eric Trump and the Trump Organization would receive a formal apology but no monetary damages, and that the fund would instead provide a process for other people to seek redress for alleged “weaponization and lawfare.” (usnews.com) The department said the fund would receive $1.776 billion from the federal Judgment Fund, a permanent appropriation used to pay certain legal settlements and judgments. DOJ said claimants could seek formal apologies or monetary relief, that there were “no partisan requirements” to file claims, and that the fund would stop processing claims no later than Dec. 1, 2028. (justice.gov) ### What exactly did Blanche say when he pulled it back? Blanche said at a House Appropriations subcommittee hearing on June 2 that the administration was ending the effort. “We are not moving forward with the fund,” he told lawmakers. “Period,” Reuters reported. TIME and Politico separately reported that Blanche described the plan as finished during the hearing. (justice.gov) Emily Covington, a Justice Department spokesperson, said the administration still believed in compensating people harmed by government abuse but was dropping this mechanism because of the reaction it had generated. “The goal of the fund was about continuing the process of fixing the wrongs committed by past administrations, but given the extraordinary misunderstanding of this, the DOJ is not proceeding with the fund,” she said, according to Reuters. (usnews.com) ### Why did Republicans turn against it? Republican senators objected after Blanche declined last month to rule out payments to people who assaulted police officers during the Jan. 6, 2021, attack on the Capitol, Reuters reported. The prospect that Jan. 6 defendants or other Trump allies could benefit became a central point of criticism from both parties. (usnews.com) Reuters reported that Republican lawmakers warned the fund could jeopardize passage of a $72 billion bill tied to Trump’s immigration agenda. White House officials spent much of June 1 calling lawmakers to assure them there would be no payouts, according to Reuters and Politico. (usnews.com) ### What role did the courts play? U.S. District Judge Leonie Brinkema temporarily blocked the administration on May 29 from taking further steps to set up or operate the fund while legal challenges proceed. Reports on the ruling said the order barred the government from moving money, accepting or reviewing claims, or making payouts for now. The order remains in effect at least until June 12. (usnews.com) The Justice Department said on June 1 that it disagreed with the ruling but would comply with it. That left the program paused even before Blanche told Congress the administration would not move forward. ### Is the administration leaving any ambiguity? Trump said on June 3 that he was not sure whether the fund had been scrapped permanently or only put on hold. (cnbc.com) TIME reported that he told CNN he would “have to ask the lawyers” and added that, “As far as I’m concerned,” the fund “was a beautiful thing.” Blanche also declined to put the reversal in writing when pressed by Democratic lawmakers, according to Reuters and TIME. (time.com) That exchange left some lawmakers seeking a more formal rescission of the May 18 DOJ announcement even after Blanche said the fund was over. ### What happens next? (time.com) June 12 is the next concrete date in the dispute because Judge Brinkema’s temporary order runs at least until then while the court considers further arguments. The separate settlement provision shielding Trump and his family from future audits of past tax records remains in place, Reuters reported. (thedailyrecord.com) (usnews.com)