The Trump administration is set to suspend the $1.8 billion compensation fund in response to pushback from Congress
Congress’s resistance forces the White House to halt a contentious $1.8 billion payout program.
Trump’s administration has paused a nearly $1.8 billion fund aimed at compensating alleged victims of government “weaponization” following significant pushback from Republicans in Congress, according to three sources familiar with the situation.
The decision represents an unusual setback for Trump from within his party and underscores an increasing readiness among certain Republicans to confront the president, especially following his endorsement of Texas Attorney General Ken Paxton over incumbent Senator John Cornyn in the lead-up to the midterm elections.
The proposal was abandoned as senators returned to Washington after the Memorial Day recess and faced a standoff with the White House regarding a $72 billion funding package for Immigration and Customs Enforcement (ICE) and Border Patrol operations. Senate Majority Leader John Thune stated that he communicated to the White House his position that the compensation fund should be eliminated.
“They provided us with an ultimatum,” a White House source stated, detailing the discussions between Republican lawmakers and administration officials regarding the fund.
According to the source, the White House has decided to withdraw the proposal to facilitate the rapid approval of the border security funding package.
The resistance from Republican senators marked a notable act of defiance against Trump, who has often insisted on loyalty from party members and has threatened to back primary challengers against those who dissent.
The proposed fund originated from a legal settlement between Trump and the Justice Department, which addressed a $10 billion lawsuit against the Internal Revenue Service (IRS) concerning the alleged mishandling of his tax records. The settlement allocated $1.776 billion for individuals asserting they had experienced government abuse.
The proposal swiftly attracted legal challenges and criticism from political opponents as well as some Republicans, who expressed concerns that individuals involved in the January 6, 2021 attack on the US Capitol might receive compensation funded by taxpayers. Critics characterized the fund as a vehicle for political patronage.
On Friday, federal judges in Virginia and Florida issued distinct orders that temporarily halted the fund. One ruling suspended the program until June 12, while the other requested additional judicial review.
On Monday, the Justice Department issued a statement expressing its strong disagreement with the court’s decisions while affirming its commitment to comply with the rulings.
The department did not clarify if it had permanently abandoned the fund, only stating that it would adhere to the court orders suspending the program. A spokesperson for the Justice Department did not provide immediate clarification on whether the proposal had been definitively canceled.
