Blanche Says Trump Administration Will Not Move Forward With USD 1.8 Billion Fund

The Trump administration has formally abandoned plans for its controversial USD 1.8 billion Anti-Weaponization Fund , with Acting Attorney General Todd Blanche telling lawmakers the proposal is no longer under consideration after weeks of political and legal turmoil.

Appearing before a House Appropriations subcommittee on Tuesday, Blanche said the administration was “not moving forward with the fund, period,” effectively ending a programme that had drawn criticism from Democrats, legal experts and many Republicans.

The fund was created as part of a settlement resolving President Donald Trump's lawsuit against the Internal Revenue Service (IRS) over the disclosure of his tax records. Administration officials had argued that it would compensate people who believed they were unfairly targeted by federal agencies during former President Joe Biden's administration, an allegation repeatedly rejected by Biden officials.

The proposal became increasingly contentious because Blanche had previously declined to publicly rule out compensation for individuals convicted in connection with the January 6, 2021, attack on the US Capitol . Although he later assured Republican senators that anyone who assaulted police officers would be ineligible , concerns persisted.

Republican opposition proved decisive. GOP lawmakers warned they would withhold support for a major immigration enforcement funding package unless the administration abandoned or significantly restricted the fund. Senator Ted Cruz later described a closed-door meeting with Blanche on the issue as one of the most contentious he had seen.

The administration also faced mounting legal pressure . A federal judge in Virginia temporarily blocked the programme, while a judge in Florida questioned aspects of the settlement that created it.

While the compensation fund has been scrapped, reports indicate the settlement's provision shielding Trump, his family and related entities from certain IRS audits remains in place, continuing to draw scrutiny from critics.