2 min readNew DelhiUpdated: Jun 2, 2026 12:39 PM IST
President Donald Trump’s nearly $1.8 billion fund to compensate victims of alleged government “weaponization” has been put on hold after a pushback from Republicans in Congress, news agency Reuters reported.
A source in the White House told the news agency that the lawmakers gave them an “ultimatum” over the dispersal of the fund that emerged from a legal settlement between Trump and the US Justice Department over the Internal Revenue Service (IRS) allegedly mishandling his tax records.
Several Republican senators expressed anger that people who attacked the US Capitol on January 6, 2021, could receive taxpayer-funded payouts, while critics described it as a slush fund.
This marks the latest development in a series of events encapsulating the growing rift between the MAGA administration and Republicans, with Trump threatening to back primary candidates against those who do not toe the line. Trump endorsed Texas Attorney General Ken Paxton over incumbent Senator John Cornyn ahead of a US midterm election.
The proposal was dropped as senators faced an impasse with the administration over a $72 billion bill to fund ICE and Border Patrol operations.
Federal judges in Virginia and Florida on Friday halted the fund until June 12 and called for further review, respectively. Following the orders, the Justice Department’s spokesperson said the DOJ “disagrees strongly” with those decisions but “will abide by the Court’s ruling.”
Trump said he is “not thrilled” but has acknowledged that this is the only way forward “for now,” Reuters reported, quoting a source said. Meanwhile, Democrats and some Republicans questioned, wanting guarantees that it won’t come back in another form.
Story continues below this ad
“This week, Senate Democrats will push legislation to ban this slush fund and ensure no president can ever do this again,” Senate Minority Leader Chuck Schumer wrote on X.
Stay updated with the latest – Click here to follow us on Instagram
