The Trump administration has abandoned plans to establish a nearly $1.8 billion “anti-weaponization” fund following mounting political opposition and legal challenges, while maintaining a separate agreement that bars future audits of President Donald Trump, his family and related entities over past tax matters.
Acting Attorney General Todd Blanche announced the decision during a House appropriations committee hearing on Tuesday, declaring that the Department of Justice would no longer pursue the fund despite previously defending it as a response to what officials described as politically motivated law enforcement actions under former President Joe Biden’s administration.
“We are not moving forward with the fund,” Blanche told lawmakers.
The proposed $1.776 billion fund emerged from a settlement between Trump and the Justice Department that resolved a $10 billion lawsuit against the Internal Revenue Service (IRS) concerning the alleged mishandling and disclosure of Trump’s tax records.
The initiative was intended to compensate individuals who claimed they had been subjected to government abuse.
However, the proposal drew criticism from both Democrats and Republicans, who questioned the lack of restrictions on potential recipients and the oversight mechanisms governing payouts.
The fund also faced legal setbacks, including court intervention that temporarily blocked the administration from taking action while related legal proceedings continue.
Republican lawmakers intensified pressure on the administration in recent weeks, warning that broader legislative priorities could be affected unless the proposal was withdrawn.
Although the compensation fund has been scrapped, Blanche confirmed that the Justice Department will continue honoring provisions of the settlement that prohibit future audits of Trump, his family and related entities regarding matters covered by the agreement.
Blanche described the arrangement as a standard component of legal settlements, though critics have challenged that characterization.
Former IRS officials and legal observers have questioned the precedent and legality of the audit protections, while ongoing court reviews continue to examine aspects of the settlement.
Even without the fund, some individuals may still seek compensation through separate administrative claims against the federal government, which the Justice Department would have discretion to resolve on a case-by-case basis.
The administration has not provided a detailed explanation for why it chose to abandon the fund while preserving the anti-audit provision.