Trump administration drops anti-weaponisation fund after legal and Republican pressure

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Trump drops anti-weaponisation fund

Highlights

Federal judge halts Trump administration's $1.8 billion anti-weaponisation fund after lawsuit challenges its legality; Justice Department agrees to comply with ruling.
The fund, announced last month as part of Trump's $10 billion IRS lawsuit settlement, offers immunity from existing IRS tax audits to Trump and his family.
Republican and Democratic opposition intensifies as critics warn the fund could enable January 6 riot participants to claim compensation, prompting Senate Democrats to pursue legislation banning such funds.

Court ruling halts disputed compensation plan

As reported by the Department of Justice, the administration says it will comply with a federal court ruling that temporarily blocks the $1.8 billion fund, even though it says it strongly disagrees with the order.

The Justice Department says in a post on X that the fund is intended for anyone allegedly "weaponised, targeted, or persecuted," regardless of political affiliation. A Virginia district judge rules on Friday that the administration must stop taking any action related to the fund after a lawsuit challenges its legality.

The fund is announced last month as part of a settlement after Trump sues the Internal Revenue Service for $10 billion. Under that deal, Trump and his eldest sons are to receive an apology but no payments from the fund, while the settlement also grants Trump, Donald Trump Jr, Eric Trump and the Trump Organization immunity from existing IRS tax audits.

Election risks and broader political fallout

The proposal draws broad criticism as opponents warn it could open a route for rioters convicted over the January 6, 2021 attack on the U.S. Capitol to seek compensation from the government. The Justice Department says there are to be no partisan requirements for filing a claim, but the initiative still becomes a major political flashpoint.

Although Trump's supporters welcome the fund, Republicans increasingly see it as a distraction from the Iran war and from inflation and other cost-of-living issues shaping voter sentiment. Democrats also attack the plan as an abuse of executive power, and Senate minority leader Chuck Schumer says Senate Democrats will push legislation this week to ban similar funds in the future.

Our earlier coverage of the Justice Department’s proposed $1.8 billion legal relief fund outlined how Senate Democrats, led by Chuck Schumer, aimed to force votes to stop the program before any money could be distributed. We also noted bipartisan concerns that the initiative could operate like a slush fund, alongside a temporary Virginia court order pausing further steps to create or disburse it.

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