Trump backs off $1.8 billion 'anti-weaponization' fund after GOP rebellion and court order

President Donald Trump is backing away from his plan to establish a nearly $1.8 billion fund to compensate people who claimed they were victims of government 'weaponization,' following a rare and fierce rebellion from Senate Republicans and a federal judge's order temporarily blocking the program.

A rare GOP revolt

The fund, which emerged from a settlement of Trump's $10 billion lawsuit against the IRS over the leak of his tax records, was meant to pay those who alleged they were unfairly targeted by law enforcement. But the proposal sparked immediate backlash from Republicans, who expressed outrage that participants in the January 6, 2021, Capitol riot could receive taxpayer-funded payouts. Senate Majority Leader John Thune said he made clear to the White House that the fund needed to be killed.

I do think that the best way to handle it is if the administration decides to shut it down themselves.

The Republican rebellion was an extraordinary act of defiance given Trump's insistence on loyalty. Senators left Washington last month without passing a $72 billion bill to fund ICE and Border Patrol operations, refusing to advance the president's immigration priorities until the fund was addressed.

A heated confrontation

The outrage came to a head during a closed-door meeting between senators and Acting Attorney General Todd Blanche, which Senator Ted Cruz described as one of the roughest he had seen in his entire time in the Senate. Blanche had refused to put concrete guardrails on how the money might be disbursed, specifically declining to rule out payments to January 6 rioters.

Fiery does not begin to cut it. My guess is there're probably 45 senators in the room, at least half of them were blasting the attorney general, and they were pissed.

Blanche is scheduled to appear before a House Appropriations subcommittee on Tuesday, where he is likely to face more pointed questions about the fund's future.

Legal setbacks mount

On Friday, a federal judge in Virginia issued a preliminary injunction temporarily halting the fund until at least June 12, when a hearing is scheduled. A judge in Florida also issued an order calling for further review. On Monday, the Justice Department said it would abide by the court's ruling, though it 'disagrees strongly' with the decision.

The Department will abide by the Court's ruling.

Privately, some administration officials expressed relief that the judge's ruling provided a way out of what most had seen as a mess of the Trump team's own making. The statement followed a three-hour meeting between Trump and House Speaker Mike Johnson at the White House.

An uncertain future

Despite the apparent retreat, the Justice Department did not commit to abandoning the fund entirely. The court order is likely to expire this month, and Trump could still reverse course. Senate Republicans remain wary, with Judiciary Committee Chair Chuck Grassley saying the president needs to 'say very explicitly that there's not going to be a weaponization fund.'

It's pretty clear that the president has to say very explicitly that there's not going to be a weaponization fund.

Democrats, led by Senate Minority Leader Charles E. Schumer, launched a coordinated effort to kill what they called a 'slush fund' before any money is disbursed. The impasse has complicated passage of legislation to fund Trump's immigration enforcement agencies, which Republicans are counting on for the remainder of his presidency.