US Justice Department abandons $1.8 billion Trump ally compensation fund

The U.S. Justice Department announced it will not proceed with establishing a $1.8 billion fund intended to compensate individuals the Trump administration described as allies targeted by legal actions during the previous Biden administration.

Interim Attorney General Todd Blanche told a House Appropriations Committee that the proposal faced judicial hurdles, including a temporary injunction by a federal judge in Virginia, and drew criticism from both Democrats and Republicans who feared the money could go to defendants in the Jan 6 Capitol attack or other litigants.

The fund, created as part of a civil lawsuit settlement between Trump and the IRS over the leak of his tax returns, was described by critics as lacking a clear legal basis and oversight. Senate Republican leader John Thune and other GOP members expressed confusion over its purpose, while Senate leaders linked the issue to broader funding debates for ICE and Border Patrol.