Justice Department Abandons Plan
President Donald Trump’s plan to distribute $1.8bn in taxpayer funding to political allies has been abandoned by the Department of Justice after intense backlash from Republicans in Congress.
The department officially ended the proposed “anti-weaponisation” fund on Tuesday, just two weeks after the idea emerged as part of a broader settlement arrangement.
Republicans Revolt Against The Fund
The decision followed a revolt inside Trump’s own party.
Republican lawmakers threatened to derail a critical immigration bill unless the administration dropped the plan to provide public funds to Trump supporters, including potentially people involved in the January 6, 2021 attack on the U.S. Capitol.
An Unforced Political Error
Several Republicans and Trump allies viewed the controversy as an avoidable mistake at a difficult political moment.
One former Trump adviser described the plan as a total self-inflicted wound, saying it reflected the president’s tendency to pursue his own priorities even when they create problems for Republicans.
Pressure Builds Around Trump
The backlash came as Trump faces several political challenges, including an unpopular war in Iran, high gasoline prices and weak approval ratings.
Republicans are increasingly concerned that these issues could damage the party ahead of the midterm elections.
Fund Tied To IRS Settlement
The proposed fund was linked to a settlement over a lawsuit Trump dropped against the Internal Revenue Service.
It was intended to compensate people the administration deemed to have been unfairly targeted by the Biden administration.
Tax Audit Provision Draws Anger
The plan also included a provision banning current tax audits of Trump, his family and his businesses.
That element drew criticism from both Republicans and Democrats, who described it as corrupt and self-serving.
Administration Defended The Proposal
The administration argued that the fund was designed to make whole Americans who had been wrongly prosecuted or targeted in the past.
Officials also insisted that anyone could qualify for payments, including Democrats. However, they refused to rule out compensation for January 6 rioters, intensifying the controversy.
Audit Shield Remains In Place
Acting U.S. Attorney General Todd Blanche said Tuesday that the fund would not move forward.
However, he also said the provision shielding Trump and his family from tax audits would remain in place, angering Republicans who had called for it to be removed.
Democrats Say Rioters Could Benefit
Democrats argued that the scheme could have allowed January 6 rioters to receive taxpayer money.
The possibility helped turn the fund into a political flashpoint and gave Democrats another example to cite in their broader criticism of Trump’s use of executive power.
Republicans Push Back More Often
The episode reflects a broader pattern emerging in Trump’s second term.
Some Republicans have shown a growing willingness to resist the president when they believe his attempts to expand power, reward allies or punish opponents go too far.
Not The First Republican Rebellion
Republicans have already challenged Trump several times since his return to office.
Several Senate Republicans joined Democrats last month to pass a war powers resolution limiting the length of the Iran conflict. Last year, Republicans also voted to force the Justice Department to release files related to Jeffrey Epstein.
Private Meeting Turns Contentious
Republican anger over the DOJ fund surfaced quickly during a private Senate meeting with Blanche on May 21, two days after the plan was announced.
Senator Ted Cruz later said on his podcast that multiple senators had yelled at the attorney general, arguing that the proposal looked like self-dealing.
Immigration Funding Used As Leverage
Republicans then stalled legislation to fund Immigration and Customs Enforcement and Customs and Border Patrol.
The move sent a clear message to the White House that the controversial compensation fund could threaten a long-delayed spending package for two key immigration agencies.
Thune Urges Administration To End It
Senate Majority Leader John Thune publicly urged the administration to shut down the fund itself.
He said Monday that the best way to handle the matter would be for the administration to end the plan before it caused further damage.
Legal Challenges Add Pressure
The political backlash was accompanied by lawsuits seeking to block the programme.
On Friday, a federal judge ordered the Justice Department to suspend the fund while a legal challenge moved forward.
DOJ First Suspends, Then Cancels
The Justice Department initially said Monday that it was temporarily suspending the compensation scheme in response to the court ruling.
Critics, including some Republicans, said that was not enough and demanded a clear commitment that the administration would abandon the idea permanently. Blanche then told House lawmakers Tuesday that the fund would not move forward.
Critics Remain Skeptical
The controversy may not be over.
Blanche also said he was not committing to putting anything in writing, a comment some critics interpreted as leaving open the possibility that the administration could revive the idea later.
Lawmakers Seek Permanent Ban
Democrats and Republicans have vowed to introduce amendments to the immigration bill that would prevent presidents from using taxpayer money to reward political allies.
Senator Thom Tillis said the only way to end the two-week drama was to end the fund completely.
Democrats See A Campaign Issue
The controversy has already become a major issue for Democrats and is likely to feature in campaign attacks ahead of the midterm elections.
Senate Minority Leader Chuck Schumer said the administration’s promise to end the fund was not enough, arguing that Congress must abolish the proposal by law to prevent it from returning.
A Political Retreat Under Pressure
The collapse of the fund marks a rare retreat for Trump under pressure from both parties.
For Republicans, the episode raised concerns about political self-dealing at a moment when the party is already facing serious electoral risks. For Democrats, it became another example of what they describe as Trump’s effort to use public power to protect allies and reward loyalists.
