The Trump administration has abandoned plans to create a controversial $1.8 billion compensation fund that was intended to support people who claimed they had been unfairly targeted by government investigations.
Acting Attorney General Todd Blanche confirmed the decision during a congressional hearing on Tuesday. He told lawmakers that the Justice Department would not move forward with the proposal.
The fund, known as the “anti-weaponisation” fund, had generated intense debate since it was announced. Supporters argued it would help people who believed they had suffered from politically motivated investigations. Critics, however, warned that it could provide money to individuals involved in serious criminal cases.
Blanche made it clear that the plan had been dropped completely. His comments came after weeks of political opposition and legal challenges.
The proposal first emerged as part of a settlement connected to a lawsuit filed by President Donald Trump against the Internal Revenue Service. The lawsuit focused on the disclosure of Trump’s tax return information.
Under the original plan, people who claimed they were victims of government “lawfare” or political targeting could apply for compensation. The broad language of the proposal led to concerns about who might qualify for payments.
Many lawmakers questioned whether individuals prosecuted after the January 6, 2021 attack on the U.S. Capitol could receive money from the fund. Some of those individuals had been convicted of assaulting police officers and other crimes.
The proposal faced resistance from both major political parties. Democrats strongly opposed the idea. Several Republicans also expressed concerns and urged the administration to reconsider.
Last week, a federal judge temporarily blocked the creation of the fund. Judge Leonie Brinkema ordered the Justice Department not to take any steps toward operating the program until a hearing scheduled for June 12.
The ruling prevented officials from processing claims, distributing funds, or setting up the system while the court reviewed the case.
Although Blanche announced that the fund was being abandoned, he declined to promise a written statement confirming the decision. During the hearing, lawmakers asked for formal documentation to provide reassurance that the program was truly ending.
Blanche responded that his testimony should be sufficient and questioned the need for additional written confirmation.
Just one day before his comments, the Justice Department had publicly defended the proposal. Officials said the fund was designed to address harm suffered by people who believed they had been unfairly targeted by government actions.
The department argued that eligibility would have been open to individuals from any political background, including Democrats, Republicans, conservatives, independents, and others.
Legal challenges also played a major role in the controversy. Two men filed a lawsuit in Virginia arguing that the compensation program was discriminatory. They claimed they had been targeted for political reasons but believed they would not qualify for assistance under the proposed rules.
The debate attracted attention from prominent political figures across Washington.
Senate Majority Leader John Thune publicly opposed the proposal and encouraged the administration to shut it down voluntarily. He suggested the issue could complicate congressional discussions about a major federal spending package.
Senate Democratic Leader Chuck Schumer also criticized the fund. He pledged that Senate Democrats would push legislation to prevent similar programs from being created in the future.
Former Vice President Mike Pence joined the growing list of critics over the weekend. Pence described the proposal as a bad idea and said it should never have moved forward.
The controversy highlighted deep political divisions over how government investigations should be handled and whether compensation programs should be created for people who believe they were unfairly prosecuted.
With the administration now abandoning the proposal, attention is expected to shift toward the upcoming court hearing and broader debates about government accountability, legal fairness, and the limits of executive power.
For now, the Justice Department says the $1.8 billion compensation fund will not be created, ending a plan that sparked opposition from judges, lawmakers, and political leaders across the United States.
