Trump administration drops its $1.8 billion ‘weaponization’ fund

A rare revolt from Republican senators has forced the Trump administration to scrap President Donald Trump’s proposed $1.8 billion “weaponisation” fund, a dramatic reversal laid out by US Acting Attorney General Todd Blanche before lawmakers.

“We are not moving forward with the fund,” Mr Blanche said. “Period.”

Even so, Mr Blanche told politicians that one contentious piece of a separate agreement with President Donald Trump will stay intact: a provision blocking future audits of his or his family’s past tax records.

The fund grew out of a legal settlement between President Trump and the Justice Department, ending an extraordinary $10 billion lawsuit he brought against the IRS over the alleged mishandling of his tax records.

Mr Blanche, once President Trump’s personal attorney, has led the Justice Department since early April, after Mr Trump dismissed Pam Bondi as attorney general.

The $1.776 billion fund was designed to compensate people who said they had suffered government abuse. But Mr Blanche sparked outrage among senators last month when he declined to rule out payments to people who assaulted police officers during the 6 January 2021 attack on the US Capitol.

As the backlash spread, White House officials spent much of Monday calling politicians to make clear that no money would be paid out, according to two sources familiar with the matter who spoke on condition of anonymity.

The White House directed questions to the Justice Department, where a spokesperson said the administration still considers compensation for victims of government abuse an important goal.

“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,” spokesperson Emily Covington said.

Blanche says he would not put it in ‌writing

At a hearing yesterday afternoon, Democratic politicians sought an unequivocal assurance that the fund was finished, ⁠but Mr Blanche said he would ‌not provide that commitment in writing.

“Why do I need to put something in writing?” Mr Blanche said. “I’m not committing to doing anything in writing.”

Democratic Representative Rosa DeLauro said Mr Blanche never should have approved the part of the agreement preventing future tax audits of Mr Trump and his businesses, pointing to his previous role as the president’s personal attorney.

“You just gave the president ⁠and his family a tax immunity to the tune of about $100 million,” Ms DeLauro said, referring to reports that President Trump could face that amount in an IRS tax ⁠penalty.

“Do you not find that there’s any conflict of interest in what you are doing here as the acting attorney general of the United States?,” she added.

Mr Blanche said the agreement did not hand the president “blanket immunity” and pushed back on Ms DeLauro’s attack.

“What are you saying is the conflict?” Mr Blanche responded. “The fact that I used to have a job and I have a current job?”

House Republicans at the hearing did not criticise the fund.

Peter Ticktin, an attorney representing more than 400 6 January defendants, said neither he nor his clients were discouraged by the announcement.

“They still expect to get paid,” said Mr Ticktin, who has filed claims for ten defendants requesting ‌up to $3 million. “They trust Donald Trump.”