Trump's $1.8B fund dies

Acting Attorney General Todd Blanche told a House appropriations panel on June 2 that the Trump administration was abandoning its planned $1.8 billion Anti-Weaponization Fund, ending a proposal the Justice Department had unveiled barely two weeks earlier. The fund had been created as part of a settlement of President Donald Trump’s lawsuit against the Internal Revenue Service over the leak of his tax records. Its collapse followed a temporary court block, multiple lawsuits and resistance from Senate Republicans who had warned the issue was complicating action on a broader immigration bill. ### How did the fund begin? The Justice Department announced on May 18 that the settlement in *President Donald J. Trump v. Internal Revenue Service* would create “The Anti-Weaponization Fund” to hear claims from people who said they had suffered “weaponization and lawfare.” DOJ said the plaintiffs — Trump, Donald Trump Jr., Eric Trump and the Trump Organization — would receive no direct payment and would instead drop the lawsuit with prejudice. (politico.com) The department said the fund would receive $1.776 billion from the federal Judgment Fund, operate under a five-member commission and continue processing claims until no later than Dec. 1, 2028. DOJ also said any money left over would revert to the federal government. ### Why did it run into trouble so quickly? U.S. District Judge Leonie Brinkema in Virginia temporarily blocked the administration on May 29 from taking further action to set up or operate the fund while she considers additional arguments. (justice.gov) CNBC reported that the pause will remain in effect at least until June 12. Democracy Forward, which brought that case, argued the program was an unlawful use of public money and said people targeted by the Trump administration as political opponents would be excluded from relief. (justice.gov) CNBC reported that the Virginia case is one of at least three lawsuits challenging the fund. ### What did Republicans object to? Senate Republicans turned the fund into a political problem for their own leadership. (cnbc.com) Politico reported that GOP blowback stalled movement on an immigration enforcement bill because leaders feared Democrats would force votes on amendments to eliminate the account or impose restrictions on it. John Thune, the Senate majority leader, said after Blanche’s testimony that he hoped lawmakers’ concerns would be addressed, though he added, “We’ll see.” Politico reported that some Republican senators still wanted clarity because Blanche did not say the administration would withdraw from the underlying settlement itself. (cnbc.com) ### What exactly did Blanche say was dead? (politico.com) Todd Blanche told lawmakers, “We’re not moving forward with the fund, period,” according to Politico and other reports. His statement ended days of uncertainty after the Justice Department had earlier said only that it would comply with the court’s temporary order. Politico reported that Blanche’s testimony did not indicate the administration would undo the broader IRS settlement, including an addendum under which the IRS would stop pursuing activities against Trump, his family and affiliated businesses. (politico.com) CNBC likewise reported that Trump’s protection from tax enforcement remained in place even as the fund was abandoned. ### Why is the IRS case still a problem for Trump? U.S. District Judge Kathleen Williams in Florida on May 29 ordered Trump’s lawyers to respond to what Bloomberg described as “grievous allegations” that the IRS settlement and fund arrangement amounted to a fraud on the court. Williams gave Trump’s personal attorneys until June 12 to answer a request from 35 former federal judges seeking to reopen the proceedings. (politico.com) Politico reported that the former judges argued Trump’s lawsuit may have been filed as a pretext for a settlement the administration already wanted, and Williams cited concerns about whether court filings were presented for an improper purpose. The Florida inquiry is separate from the Virginia case that paused the fund’s creation. June 12 is now the next key date in both tracks of the dispute. (finance.yahoo.com) In Virginia, Judge Brinkema’s temporary pause is set to last at least until then, and in Florida, Judge Williams has ordered responses from Trump’s lawyers on the former judges’ allegations. (cnbc.com) (politico.com)