These funds, officially intended to compensate alleged victims of prosecutorial actions during the previous presidency, caused a huge political and legal storm.
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As reported by Axios, citing high-ranking officials, “at the moment the project is dead.”
“Political slush fund” and disputes involving Donald Trump
The White House proposal aroused great emotion on Capitol Hill from the very beginning, being widely criticized as “political bribery fund.
Critics directly raised alarm that huge amounts of money could go to, among others, to those convicted of the January 6, 2021 storming of the Capitol.
Importantly, the president's idea met with bipartisan opposition – it was rejected not only by Democrats, but also by Republicans in the House of Representatives and the Senate, which they control. Opposition within his own camp was so strong that House Speaker Mike Johnson planned to personally raise the issue during a meeting with Trump at the White House.
The origins of the fund's creation date back to the loud legal dispute between Donald Trump and the US Internal Revenue Service (IRS). The president and his business empire sued the agency for $10 billion. after one of the external contractors leaked his tax returns for 2019-2020.
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The parties reached a settlement last month. Trump withdrew the lawsuit, and in return, the administration received a fund to counteract “weaponization” (using state bodies as a political weapon) worth $1.8 billion. These funds were to be distributed to claims of government malfeasance, with virtually no oversight whatsoever.
Additionally, the settlement guaranteed Trump broad immunity from IRS audits.
US judges block billions
The immediate impulse to revise the White House's plans was the decisive decisions of two federal judges. U.S. District Judge Leonie M. Brinkema in Virginia blocked the withdrawal of any money from the fund. In turn, Judge Kathleen Williams of Florida – the same one who handled the original case against the IRS – announced the initiation of an official investigation.
The administration's reaction was immediate. “We plan to respect court decisions,” admitted one of the officials. The second one added directly: “It became a distraction. The president believes the government was used as a weapon against the people — and it wasn't just about him. But this is not the right time and tool to fight it“.
