Congressional opposition forces the White House to shelve a disputed $1.8 billion payout programme.
- +Trump Administration To Halt $1.8bn Compensation Fund Due To Congress Pushback
President Donald Trump’s administration has put on hold a nearly $1.8 billion fund intended to compensate alleged victims of government “weaponization” after facing strong opposition from Republicans in Congress, according to three sources familiar with the matter.
President Donald Trump’s administration has put on hold a nearly $1.8 billion fund intended to compensate alleged victims of government “weaponization” after facing strong opposition from Republicans in Congress, according to three sources familiar with the matter.
The decision marks a rare setback for Trump from within his own party and highlights a growing willingness among some Republicans to challenge the president, particularly after his endorsement of Texas Attorney General Ken Paxton over incumbent Senator John Cornyn ahead of the midterm elections.
The proposal was abandoned as senators returned to Washington following the Memorial Day recess and confronted a standoff with the White House over a $72 billion funding package for Immigration and Customs Enforcement (ICE) and Border Patrol operations. Senate Majority Leader John Thune said he made clear to the White House that the compensation fund should be scrapped.
“They gave us an ultimatum,” a White House source said, describing negotiations between Republican lawmakers and administration officials over the fund.
According to the source, the White House agreed to drop the proposal in an effort to secure swift passage of the border security funding package.
The resistance from Republican senators represented an unusual act of defiance against Trump, who has frequently demanded loyalty from party members and threatened to support primary challengers against those who oppose him.
The proposed fund stemmed from a legal settlement between Trump and the Justice Department that resolved a $10 billion lawsuit against the Internal Revenue Service (IRS) over the alleged mishandling of his tax records. The settlement earmarked $1.776 billion for individuals claiming they had been subjected to government abuse.
The proposal quickly drew legal challenges and criticism from both political opponents and some Republicans, who raised concerns that people involved in the January 6, 2021 attack on the US Capitol could potentially receive taxpayer-funded compensation. Critics described the fund as a political slush fund.
On Friday, federal judges in Virginia and Florida issued separate orders temporarily blocking the fund. One ruling paused the programme until June 12, while the other called for further judicial review.
In a statement on Monday, the Justice Department said it “disagrees strongly” with the court decisions but would comply with the rulings.
The department did not indicate whether it had permanently abandoned the fund, stating only that it would follow the court orders suspending the programme. A Justice Department spokesperson did not immediately clarify whether the proposal had been definitively cancelled.
