Trump Backs $1.8 Billion Ally Payout Fund as White House Says Plan Is Dead
Updated
Updated · The New York Times · Jun 3
Trump Backs $1.8 Billion Ally Payout Fund as White House Says Plan Is Dead
3 articles · Updated · The New York Times · Jun 3
Summary
Trump said Wednesday he still “love[s]” the proposed $1.8 billion taxpayer-funded compensation pool for allies claiming political persecution, even after his administration said it had abandoned the idea.
Todd Blanche, the acting attorney general, declared Tuesday the administration was “not moving forward with the fund, period,” but Trump declined to say whether it was dead or merely paused, saying he would “have to ask the lawyers.”
Trump framed the proposal as a “weaponization fund” and linked it to his own grievances, saying law enforcement had victimized him too after the FBI search of his home.
The plan drew bipartisan backlash on Capitol Hill because it could benefit Jan. 6 defendants; Trump again praised the rioters as “great people” after already granting clemency to nearly 1,600 people tied to the attack.
Republican senators had blocked a spending bill until the fund was scrapped, then let it advance Wednesday, underscoring the split between Trump’s public support and his administration’s retreat.
What legal precedent allows a private lawsuit settlement to create a billion-dollar public fund and grant tax immunity?
With the original IRS settlement under fraud investigation, what is the legal future for the associated compensation fund?
How will claims for the $1.8B fund be verified and awarded without any form of traditional judicial oversight?
The Rise and Fall of Trump’s $1.8 Billion "Anti-Weaponization Fund": Legal, Ethical, and Political Fallout
Overview
The Trump administration proposed the 'anti-weaponization' fund to use taxpayer money to compensate people it identified as victims of political targeting, based on a legal settlement between the Justice Department and the IRS after Trump sued over his tax records. The fund's announcement sparked immediate and fierce backlash from both Republicans and Democrats, especially over the possibility that January 6 rioters could receive payouts. This bipartisan opposition, combined with concerns about the fund’s legal basis and oversight, led to intense political pressure and ultimately forced the administration to abandon the controversial initiative.