Trump's $1.8B fund for IRS 'victims' faces Republican ultimatum
What's the story
United States President Donald Trump's plan to set up a $1.8 billion fund for victims of alleged government "weaponization" has hit a roadblock. The proposal, which was part of a settlement with the Justice Department over a $10 billion lawsuit against the IRS, has faced fierce opposition from Republicans. Senate Majority Leader John Thune confirmed that he had told the White House that the fund needed to be killed, while a White House source said, "They gave us an ultimatum."
Fund details
Fund labeled 'slush fund' by GOP
The fund was intended to compensate individuals who claimed government agencies unfairly targeted them. However, it faced backlash from Trump's own party, who feared it could benefit those involved in the January 6 Capitol riot. Critics labeled it a "slush fund," a term used for a large pool of taxpayer money that could be distributed with too much political discretion.
Legal hurdles
Federal judges halt fund until June 12 for review
Federal judges in Virginia and Florida have temporarily halted the fund until June 12 for further review. The Department of Justice (DOJ) has complied with these court orders but disagrees with them. A DOJ spokesperson said they "disagree strongly" with the legal decisions but will abide by them. Despite this setback, there is no formal commitment from the DOJ to abandon the fund entirely.
Ongoing discussions
Trump rethinking fund amid Republican pressure
Reports suggest that Trump is reconsidering the fund, although no official announcement has been made. Republican Senator Jim Lankford emphasized the need for clarity in negotiations, saying, "They need to say what they actually mean." Thune also reiterated that shutting down the fund would be the best way forward. Alaska Senator Lisa Murkowski echoed similar sentiments, stating satisfaction if the settlement is completely pulled.
DOJ actions
Todd Blanche's future at stake as Trump backtracks
Since taking over as acting attorney general, Todd Blanche has aggressively prosecuted Trump's perceived enemies. However, this backlash over the fund poses a major challenge to his permanent appointment. Meanwhile, Senate Minority Leader Chuck Schumer announced that Senate Democrats would introduce legislation to ban such a fund in the future. The settlement agreement also prevented IRS audits of Trump's past tax claims before May 18, but it remains unclear how pausing the fund may impact any audits.