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Senate GOP leader criticizes Trump's $1.8bn compensation fund
Senate Majority Leader John Thune has publicly opposed the Trump administration's creation of a $1.8 billion fund designed to compensate individuals allegedly targeted by past government investigations. The South Dakota Republican, the highest-ranking GOP official to challenge the plan, told reporters he saw "no clear purpose" for the initiative.
Fund tied to Trump's dropped IRS lawsuit
The fund emerged as part of a settlement resolving President Donald Trump's $10 billion lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns to media outlets. Under the agreement, announced Monday, Trump and his family received legal protections, while the IRS agreed to drop all existing and potential audits of his finances.
A Justice Department memo filed Tuesday formalized the terms, permanently barring the IRS from examining Trump's past tax filings or those of his "related or affiliated individuals," including trusts and businesses. The protections cover returns filed before the settlement's effective date.
"There would be little point in settling several significant claims if either party could simply turn around and seek to initiate more adverse claims that could have been pursued previously."
Justice Department spokesperson
Structure and controversy
The "Anti-Weaponization Fund," named in reference to the 250th anniversary of U.S. independence, will be overseen by a five-member commission. Four members will be appointed by the attorney general, with $1.776 billion allocated for settlements. The fund's creation has drawn bipartisan criticism, with Democrats labeling it a "slush fund" for Trump allies.
Thune, however, focused on procedural concerns, stating the fund would likely face "significant scrutiny" from lawmakers. "I'm not sure exactly how they intend to use it," he said, adding that he expected a "full vetting."
Defenders argue fund is non-partisan
Justice Department official Joshua Blanche defended the fund during a Capitol Hill hearing Tuesday, insisting it would be open to all applicants, including Hunter Biden, President Joe Biden's son, who was convicted of felony gun charges in 2024. "Democrats are not excluded from seeking compensation," Blanche said, though he acknowledged the fund was "unusual."
Vice President JD Vance echoed the sentiment, accusing media outlets of misrepresenting the fund's purpose. "Anybody can apply for it," he said at a Tuesday briefing.
Democrats denounce fund as corruption
Democratic lawmakers sharply criticized the initiative. Washington Senator Patty Murray called it "corruption that has never been more blatant or more widespread," arguing that taxpayers would bear the cost while Trump and his associates benefited. "You write the check, Trump and his cronies cash it," she said.
The fund's announcement coincided with the abrupt resignation of Treasury Department General Counsel Brian Morrissey, who stepped down after seven months. While Morrissey did not comment on his departure, a Treasury spokesperson praised his service as "honorable and with integrity."
Next steps
The fund's implementation will proceed under Justice Department oversight, though congressional oversight remains likely amid ongoing partisan debate. Lawmakers are expected to demand further details on eligibility criteria and oversight mechanisms.
