Washington: The Trump administration has abandoned plans to establish a controversial $1.8 billion (£1.3 billion) compensation fund intended for individuals who claimed they were unfairly targeted or investigated by the federal government.
Acting Attorney General Todd Blanche told lawmakers during a congressional hearing that the Justice Department would no longer pursue the initiative. Blanche remarked that, “We’re not moving forward with the fund, period.”
The proposed ‘anti-weaponisation’ fund was initially unveiled as part of a settlement stemming from President Donald Trump’s lawsuit against the Internal Revenue Service (IRS) over the disclosure of his tax returns.
Legal challenge halted fund
The decision comes after Leonie Brinkema temporarily blocked the creation of the fund. The judge ordered the Department of Justice (DOJ) to refrain from taking any steps to establish or operate the programme until a preliminary hearing scheduled for June 12.
Although the Justice Department said it strongly disagreed with the ruling, officials confirmed they would comply with the court’s order. During hearing, Blanche declined to provide a written commitment confirming the fund’s cancellation, despite requests from Democratic lawmakers.
Bipartisan opposition
The fund faced mounting criticism from both Democrats and Republicans, who argued that its broad eligibility criteria could allow compensation claims from individuals prosecuted in connection with the January 6 United States Capitol attack, including those convicted of assaulting police officers.
The DOJ had previously defended the programme, describing it as a mechanism to compensate people who had been unfairly weaponised, targeted, or persecuted by government actions, regardless of their political affiliation.
However, concerns intensified as supporters of Trump prosecuted over the Capitol riot, along with some former members of his inner circle, publicly expressed interest in filing claims.
Republican leaders voice concerns
Opposition to the fund extended into Republican ranks. John Thune, the Senate Majority Leader, repeatedly urged the administration to withdraw the proposal, arguing that the White House should shut down the programme voluntarily rather than leave Congress to address it through legislation.
Former Vice President Mike Pence also criticized the initiative, calling it ‘a bad idea from the start.’ Meanwhile, Senate Democratic Leader Chuck Schumer pledged to pursue legislation preventing any future administration from creating a similar compensation fund.
Lawsuit sparked additional scrutiny
The court challenge originated from two plaintiffs in Virginia who alleged that the fund was discriminatory. They argued that, despite claiming to have been politically targeted by the Trump administration, they would likely be excluded from receiving compensation under the programme.
With the administration now abandoning the proposal, the future of the legal challenge remains uncertain, though the decision effectively ends one of the most contentious Justice Department initiatives announced in recent months.
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