[UPDATED — 5:05 p.m. EDT]
The Trump administration has decided to scrap its controversial $1.776 billion “anti-weaponization” fund following a wave of criticism from congressional Republicans, legal challenges, and a federal court order that temporarily blocked the program.
The decision marks a significant retreat for the White House and the Justice Department, which had spent weeks defending the fund as a way to compensate Americans allegedly harmed by politically motivated government actions. Multiple outlets reported Monday that administration officials have concluded the proposal is effectively finished, at least for the time being. One senior official described the fund as “dead for now.”
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Senate Majority Leader John Thune is urging the White House to abandon the Trump administration’s controversial $1.776 billion “anti-weaponization” fund as Republican resistance inside Congress continues to grow.
The fund, created through a Justice Department settlement tied to President Donald Trump’s lawsuit against the IRS over leaked tax returns, has become one of the most divisive issues facing Senate Republicans as they attempt to advance a broader immigration enforcement package.
The Hill highlighted Thune’s warning that the White House may need to rethink parts of its strategy if it hopes to move a budget reconciliation package through Congress anytime soon:
“I made my views very clear on the issue,” Thune said.
Asked if he would prefer the administration abandon the proposed fund to compensate people who were prosecuted by the Biden-era Justice Department, Thune nodded yes.
“I do think the best way to handle it is if the administration decides to shut it down themselves,” he added.
A $72 billion budget reconciliation package to fund Immigration and Customs Enforcement and Border Patrol through 2029 stalled in the Senate before the Memorial Day recess after GOP senators balked at voting on the package without a clear plan about how to handle the administration’s controversial anti-weaponization fund.
GOP Revolt Builds
Republican senators spent a closed-door meeting before the Memorial Day recess pressing Acting Attorney General Todd Blanche for answers about how the fund would operate, who could qualify for payments, and what safeguards would prevent abuse. Many senators reportedly left dissatisfied.
Thune later acknowledged the administration would need to offer changes before Republicans could move forward.
“We have a lot of members who are concerned,” Thune told reporters after the meeting, adding that the White House would need to help resolve the issue.
The controversy became serious enough that Senate Republicans delayed action on roughly $72 billion in immigration and border security funding because support within the GOP conference appeared uncertain.
Critics Call It A ‘Slush Fund’
The proposed fund would distribute approximately $1.776 billion to people who claim they were victims of government “weaponization” or politically motivated law enforcement actions.
Critics inside both parties have warned the structure lacks clear eligibility standards and could potentially allow individuals connected to the January 6 Capitol riot to seek compensation.
Several Republican senators publicly expressed concern.
Sen. Bill Cassidy previously questioned the legal basis for creating the fund, while Sen. John Cornyn reportedly described it as a potential “slush fund.” Both senators later lost primaries after facing Trump-backed challengers.
Even Sen. Ted Cruz, who supports compensating legitimate victims of government misconduct, warned of a “full-on revolt” among Senate Republicans if the administration refused to modify the program.
Legal Problems Mount
The political backlash is now being accompanied by legal trouble.
Last week, U.S. District Judge Leonie Brinkema temporarily blocked the administration from taking further steps to establish or operate the fund while litigation proceeds. A hearing is scheduled for June 12.
Several lawsuits have already been filed challenging the legality of the arrangement, including cases brought by former federal judges, Capitol Police officers, watchdog groups, and advocacy organizations. Critics argue the administration improperly used settlement authority to create a massive compensation program without congressional approval.
White House May Be Backing Away
Amid the growing controversy, reports emerged Monday that the Trump administration is considering scrapping the fund entirely.
Reuters and Axios both reported that White House officials are discussing abandoning the proposal after bipartisan criticism, legal challenges, and mounting opposition from Senate Republicans. One administration official reportedly described the initiative as “dead for now.”
If the administration ultimately withdraws the fund, it could clear the way for Republicans to resume work on the stalled immigration funding package. But the episode has exposed unusually sharp tensions between the White House and Senate Republicans at a critical point in Trump’s second term.
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