Trump Administration Abandons $1.8 Billion ‘Anti-Weaponisation Fund’ — But Tax Audit Shield Remains
Fund Scrapped Amid Republican Revolt and Legal Setbacks
The Trump administration has abandoned its $1.8 billion “anti-weaponisation fund” following an unusual wave of Republican opposition, a judicial pause, and mounting legal challenges. Acting Attorney General Todd Blanche confirmed the reversal on Tuesday before the House Appropriations Committee, stating simply: “We are not moving forward with the fund. Period.”
The announcement marks a sharp reversal for the Justice Department, which had unveiled the fund just two weeks earlier as part of a settlement resolving a personal lawsuit Trump had filed against his own government.
What the Fund Was — and What It Would Have Done
The fund emerged from a $10 billion lawsuit Trump filed against the Internal Revenue Service (IRS), alleging the agency mishandled his tax records. The resulting settlement established a compensation mechanism for individuals claiming to be victims of government “lawfare” and “weaponisation” — terms Trump has consistently used to characterise prosecutions pursued under the Biden administration.
Critics noted an immediate conflict of interest: as president, Trump exercises authority over both the IRS and the Justice Department, the two principal parties to the settlement.
The fund was also structured to draw money directly from the Justice Department’s judgement fund, bypassing congressional oversight — a feature that drew particular anger from lawmakers on both sides of the aisle.
The Provision That Survives
Despite scrapping the compensation mechanism, Blanche confirmed that a separate settlement provision will remain in force: a prohibition on future audits of Trump’s or his family’s past tax records. That element of the agreement was not withdrawn.
Democratic lawmakers pressed Blanche to commit to abandoning the fund in writing at Tuesday’s hearing. He declined.
Republican Pressure and the Immigration Bill
The fund’s collapse was accelerated by its entanglement with a $72 billion immigration enforcement bill currently before Congress. Republican congressional leaders had signalled they could not pass the legislation while the fund remained in place, given its political toxicity.
A source familiar with White House thinking told Reuters that Blanche’s own position was contingent on his ability to resolve lawmakers’ concerns. White House officials spent much of Monday calling Republican senators to assure them no payouts would be made, according to two sources who spoke on condition of anonymity.
Senate Majority Leader John Thune told reporters after a Republican lunch meeting that he had spoken with Blanche and expected the acting attorney general to address outstanding concerns at the House hearing. Thune also indicated he wants the immigration bill focused narrowly — excluding, among other items, a $1 billion proposal to construct an 8,000-square-metre ballroom on White House grounds.
Legal Challenges Had Already Stalled the Fund
A federal judge had already temporarily paused the fund last week amid ongoing legal challenges to its legitimacy. On Monday, the Justice Department said it would comply with the court order halting disbursements until 12 June, but stopped short of announcing a permanent shutdown — a position that shifted within 24 hours following Blanche’s congressional testimony.
The fund had also drawn specific criticism after Blanche refused, at a prior hearing, to commit to barring payouts to individuals convicted of assaulting police officers during the January 6, 2021 Capitol attack.
Trump and Democrats Respond
Trump broke his public silence on Tuesday afternoon, posting a link to a Substack article titled “The Truth the Media Won’t Tell You About the Anti-Weaponization Fund” — a piece defending the fund as legitimate redress for government abuse and dismissing critics as politically motivated.
Senior Democrats, meanwhile, pledged legislative action. Senator Chuck Schumer announced plans to introduce legislation that would permanently prevent any similar fund from being established in the future.