President Donald Trump’s proposed $1.8 billion “weaponization” compensation fund has been paused following strong opposition from congressional Republicans, according to Reuters, citing sources familiar with the matter.
The fund emerged from a settlement tied to Trump’s lawsuit against the IRS and was intended to compensate individuals who claimed they were unfairly targeted by government actions. However, the proposal quickly drew criticism from lawmakers concerned about oversight and eligibility for payouts.
The Justice Department says it will stop work on its "anti-weaponization fund" after a judge's ruling. https://t.co/HzBb8nXckY
— CBS Evening News with Tony Dokoupil (@CBSEveningNews) June 1, 2026
According to Reuters, several Senate Republicans objected to the plan amid broader negotiations over a $72 billion immigration and border security funding package. Critics also raised concerns that people connected to the January 6 Capitol riot could potentially seek compensation.
Democrats have moved to permanently block the fund. Senate Minority Leader Chuck Schumer pledged legislative action, while Senators Adam Schiff, Mark Kelly and Elissa Slotkin introduced the “Drain the Slush Fund Act.”
Reuters reported that Trump is “not thrilled” by the pause but currently views it as the only viable path forward while negotiations continue.
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