Republican Revolt Forces Trump to Scrap $1.8 Billion Anti-Weaponisation Fund

The Trump administration has backed away from plans to establish a controversial $1.776 billion “Anti-Weaponisation Fund” after facing criticism from Republican lawmakers and a federal court order that temporarily blocked the initiative.

The US Justice Department confirmed on Monday that it would not move forward with the fund, which had been proposed as part of a settlement linked to President Donald Trump’s lawsuit against the Internal Revenue Service (IRS).

The proposed fund was intended to compensate individuals who claimed they had been unfairly targeted by government agencies during the administration of former President Joe Biden. Trump and his allies had described such actions as examples of political “weaponisation” of the federal government.

However, the proposal quickly became a source of controversy, with critics questioning the lack of clarity surrounding who would be eligible for payments and how the money would be distributed.

In a statement, the Justice Department said it strongly disagreed with the court’s decision to halt the fund but would comply with the ruling.

How The Fund Was Created

The proposal stemmed from Trump’s legal battle with the IRS over the leak of his tax records in 2019. Trump had initially sought billions of dollars in damages before settlement negotiations led to discussions about creating a compensation fund for alleged victims of politically motivated investigations and prosecutions.

Reports suggested the agreement would also provide legal protections for Trump, his family members and affiliated businesses from future audits related to previously filed tax returns. The settlement was also expected to include a formal apology, though not direct financial compensation for Trump himself.

The fund’s proposed size — nearly $1.8 billion — immediately attracted attention on Capitol Hill and sparked questions about oversight and accountability.

Republicans Raise Objections

While Democrats criticised the proposal from the outset, resistance also emerged within Trump’s own party.

Several Republican lawmakers expressed concerns that the fund could become a vehicle for politically connected individuals to seek compensation. Questions intensified after acting Attorney General Todd Blanche declined to explicitly rule out whether people involved in the January 6 Capitol riot could qualify for payments.

The uncertainty fueled a backlash among Senate Republicans, some of whom reportedly linked the issue to broader negotiations over administration-backed legislation.

Senate Republican Leader John Thune said concerns surrounding the fund would need to be addressed before lawmakers could move ahead with related policy priorities.

Judge Blocks Payouts

The administration’s plans suffered a major setback when US District Judge Leonie Brinkema temporarily froze the initiative last week.

The judge barred officials from processing claims, transferring funds or making payments while legal challenges to the proposal remain pending. A hearing has been scheduled for June 12 to determine whether the restrictions should remain in place during the litigation process.

Faced with growing political opposition and legal uncertainty, the administration ultimately decided to abandon the fund altogether.

The decision marks a rare retreat for the Trump administration and highlights the unease the proposal generated even among Republican allies, many of whom questioned both its purpose and its potential beneficiaries.