Trump retreats on $1.8B fund

Senate Republicans have forced the Trump administration to back away from a proposed $1.8 billion Justice Department compensation fund that had become one of the most politically fraught pieces of the party’s broader immigration funding push. Acting Attorney General Todd Blanche told lawmakers on June 2 that the department was “not moving forward with the fund, period,” ending, at least for now, a plan that critics said could channel taxpayer money to Trump allies and people charged in the Jan. 6 attack. The retreat came as Senate Republicans also stripped up to $1 billion in security funding tied to President Donald Trump’s planned White House ballroom from the same package. On June 3, the Senate moved ahead with votes on the immigration enforcement bill after removing both flashpoints. ### How did the fund become a problem for Republicans? The $1.8 billion proposal emerged from a Justice Department plan to compensate people the administration said had been victims of government “weaponization” and “lawfare.” Newsweek reported the department announced a $1.776 billion program last month as part of a settlement tied to Trump’s lawsuit against the Internal Revenue Service. (politico.com) (cnbc.com) Republican senators objected after the idea drew bipartisan criticism and threatened to complicate passage of the larger immigration bill. The New York Times reported that several Republicans wanted language barring the president from creating a fund to pay people claiming government persecution. ### Who was expected to benefit from the payouts? (newsweek.com) Critics said the proposal was written broadly enough that it could benefit Trump associates, conservative allies and Jan. 6 defendants or rioters if the administration deemed them politically targeted. Time reported that opponents feared the money would be used to give taxpayer funds to Jan. 6 rioters, and AP described the plan as a settlement fund for political allies. (nytimes.com) Chuck Schumer, the Senate Democratic leader, said Democrats intended to force votes to block the program permanently if Republicans tried to revive it through reconciliation. Time reported Schumer said Democrats would not stop until the fund was “well and truly buried.” ### What exactly did Todd Blanche say? Todd Blanche, appearing before the House appropriations subcommittee that oversees Justice Department funding, gave the clearest public statement yet that the administration was backing off. (time.com) Politico and NBC News both reported Blanche said, “We’re not moving forward with the fund, period.” Donald Trump has not matched that finality. (time.com) The New York Times reported on June 3 that Trump remained in favor of the payout plan, and NBC News reported he later said he was not sure whether the fund was really dead and would need to “ask the lawyers.” ### Why was the ballroom money dropped too? Senate Republicans removed up to $1 billion for security upgrades connected to Trump’s proposed White House ballroom from the immigration bill before floor action began. (politico.com) CNBC, The Hill and the Guardian each reported GOP senators concluded the add-on risked imperiling the larger package. Politico reported in May that senators had already been told the ballroom money was out after internal objections. (nytimes.com) The funding was tied to Secret Service and other security needs around the planned 90,000-square-foot ballroom project, according to those reports. ### Is this a broader Republican break with Trump? Republican resistance in this episode was narrow and tied to a live legislative fight, not a wider repudiation of Trump’s agenda. (cnbc.com) The Senate still moved ahead with the immigration enforcement package once the two controversial items were removed. Other Trump-linked provisions remain in dispute. (politico.com) Time reported that while the compensation fund was dropped, protections affecting IRS audits of Trump’s past tax returns were still in place, and Democrats have said they will continue pressing votes on those provisions as the Senate debate continues. (time.com) (baltimoresun.com)