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Trump Administration Creates $1.8 Billion Fund for Alleged Victims of Political Prosecutions

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Politics5/6/2026
A newer version of this story is available at Trump Drops $10 Billion IRS Lawsuit, Settles for $1.8 Billion Fund and Tax Audit Shield.

President Donald Trump's administration has established a $1.776 billion 'Anti-Weaponization Fund' to compensate individuals who claim they were targets of politically motivated prosecutions. The fund was created as part of a settlement resolving Trump's $10 billion lawsuit against the Internal Revenue Service (IRS) over a leak of his tax returns. Two police officers who defended the Capitol on January 6, 2021, have filed a lawsuit to dissolve the fund.

Facts First

  • A $1.776 billion 'Anti-Weaponization Fund' was created via a settlement of President Trump's lawsuit against the IRS.
  • The fund is designed to pay individuals who allege they were victims of 'lawfare' or 'weaponization' by prior administrations.
  • A five-member commission appointed by Acting Attorney General Todd Blanche will oversee the fund and decide payouts.
  • Two Capitol police officers filed a lawsuit to block the fund, invoking the 14th Amendment's prohibition on paying debts incurred in aid of insurrection.
  • The settlement also bars the IRS from auditing Trump, his family, and his businesses for past tax examinations.

What Happened

President Donald Trump, his sons, and the Trump Organization voluntarily dismissed their $10 billion lawsuit against the Internal Revenue Service (IRS) and Treasury Department on Monday, May 18, 2026. The dismissal was recorded as 'with prejudice', preventing Trump from refiling the lawsuit. The lawsuit alleged reputational and financial harm from the leak of Trump's confidential tax returns to media outlets between 2018 and 2020 by a former contractor, who was later sentenced to prison.

As part of the settlement, the Justice Department announced the creation of a $1.776 billion 'Anti-Weaponization Fund'. The fund, overseen by a five-member commission appointed by Acting Attorney General Todd Blanche—Trump's former personal attorney—will review claims of alleged government political targeting, issue formal apologies, and award monetary compensation. The money will be drawn from the federal Judgment Fund, which pays court judgments and settlements. The fund is scheduled to operate through December 15, 2028, and its decisions cannot be appealed in court.

A separate one-page document, signed by Blanche and posted to the Justice Department website on Tuesday, states the U.S. is 'forever barred and precluded' from examining or prosecuting Trump, his sons, and the Trump Organization's current tax examinations. The Justice Department stated this refers only to existing audits, not future examinations.

On Wednesday, Metropolitan Police Department officer Daniel Hodges and former U.S. Capitol Police officer Harry Dunn filed a federal lawsuit to block individuals, including Jan. 6 rioters, from receiving payouts from the fund. Their lawsuit invokes the 14th Amendment's prohibition on the U.S. paying 'any debt or obligation incurred in aid of insurrection'.

Why this Matters to You

This fund uses taxpayer money from the Judgment Fund, which Congress created to pay court losses and settlements without a vote for each instance. The fund's creation and rules were established without congressional approval. A commission appointed by the acting attorney general will decide who receives payments, and those decisions are final with no court appeal. The settlement also permanently bars the IRS from auditing President Trump, his family, and his businesses for past tax returns.

You may see political allies of the president, including individuals prosecuted for actions related to January 6, 2021, apply for compensation from this fund. During a congressional hearing, Acting Attorney General Todd Blanche did not rule out the possibility that individuals convicted of assaulting Capitol Police could be eligible. Vice President Vance suggested the fund could also compensate individuals like Hunter Biden. The fund is permitted to spend a portion of its $1.776 billion on its own staff, travel, and facilities.

What's Next

Republican senators have notified President Trump that the fund will be subject to legislative scrutiny. Representative Jamie Raskin (D-Md.) is introducing legislation to block the fund, stipulating that 'no Federal funds may be used to create or make payments to fund' it. A spokesperson for Axios confirmed Raskin is considering a discharge petition as a backup option to force a vote if House Republican leadership prevents it from reaching the floor. Representative Brian Fitzpatrick (R-Pa.) stated he will 'try to kill' the fund, and Representative Kevin Kiley (R-Calif.) said he will 'likely' sign Raskin's discharge petition.

In the Senate, Democrats are preparing amendments to impose restrictions on the fund or ban payments to individuals who participated in the January 6 attack. Senator Mike Rounds (R-S.D.) stated there will be an attempt to address questions regarding the fund, with potential amendments coming from the Republican side. The lawsuit filed by Officers Dunn and Hodges seeks to dissolve the fund, and spokespeople for the Justice and Treasury departments did not immediately respond to requests for comment regarding it.

Perspectives

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Democrats argue that the fund is a 'textbook corruption' scheme and an unconstitutional 'slush fund' designed to reward Trump's allies and insurrectionists with taxpayer money.
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The Trump Administration maintains that the fund is a 'lawful process' intended to provide redress for individuals who were victims of 'lawfare' and government weaponization.
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Legal Experts and Judges express significant doubts regarding the legality of the fund, noting potential conflicts of interest and questioning whether the president can act as both plaintiff and decision-maker.
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Republican Lawmakers have expressed varying degrees of discomfort, with some calling the fund a 'slush fund' or 'kryptonite' for the party, while others worry about the political consequences of the spending.
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Critics of the Fund condemn the arrangement as an illegal abuse of power that uses taxpayer dollars to line the pockets of political supporters and paramilitary groups.
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Policy Analysts observe that the use of the Judgment Fund for such purposes exploits a 'huge loophole' and sets a precedent that future administrations may follow.