Acting Attorney General Drops Trump's $1.8 Billion Fund After Republican Opposition
Todd Blanche tells lawmakers the Justice Department will not proceed with controversial compensation fund while preserving IRS audit protections for Trump family.
Acting Attorney General Todd Blanche announced Tuesday that the Justice Department will abandon President Trump's proposed $1.8 billion compensation fund, bowing to mounting Republican opposition that had stalled key immigration legislation. Speaking before a House hearing, Blanche said the administration was "not moving forward" with the fund designed to compensate individuals claiming to be victimized by government overreach during previous administrations.
The decision comes after weeks of intense lobbying by Republican lawmakers who viewed the fund as politically motivated and fiscally irresponsible. GOP leaders had threatened to block Trump's immigration reform package unless the compensation program was scrapped, creating a significant legislative obstacle for the administration's broader policy agenda.
Despite abandoning the fund, Blanche confirmed that a separate order shielding Trump, his family, and his businesses from IRS audits will remain in place. The acting attorney general told lawmakers he would preserve the "broad order protecting the president and his family from audits of already filed returns," drawing sharp criticism from Democratic committee members who questioned the propriety of such protections.
Republican leadership hopes the fund's elimination will now unlock crucial votes for comprehensive immigration legislation that has been stalled in Congress for months. Senate Majority Leader John Thune and other GOP leaders had made clear that the compensation fund was a non-starter for their caucus, forcing the administration to choose between its priorities.
The controversy highlights ongoing tensions within the Republican Party over Trump's use of federal resources and executive power. While conservatives celebrated the fund's cancellation as a victory for fiscal responsibility, the preservation of IRS audit protections suggests the administration remains committed to shielding Trump's financial affairs from federal scrutiny. Democrats have vowed to continue challenging both policies through legislative and legal channels.
