US president Donald Trump has dropped his plan for a $1.8 billion “anti-weaponisation” fund that would compensate his political allies for being targeted by the justice system under Joe Biden, following a political backlash from Republicans.
Trump’s decision marked a significant U-turn for the president, who championed the scheme as a crucial political project even as members of his party urged him to focus on ending the Iran war and do more to tackle rising inflation.
The president’s reversal was revealed in an announcement by the department of justice on Monday, which said the administration would abide by a court ruling temporarily blocking the $1.8 billion fund.
The department wrote on X that it “disagrees strongly” with a federal judge’s order last week halting the fund’s creation and any payouts for at least two weeks, but would accept it.
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A Virginia district judge on Friday said the Trump administration must stop taking any action related to the fund following a lawsuit challenging its legality.
The justice department wrote on X: “This Fund was open to anybody who was so weaponised, targeted, or persecuted, whether they were Democrat, Republican, Conservative, Independent, or otherwise. The Department will abide by the Court’s ruling.”
However, since the court order blocking the fund expires in two weeks, there may be an opening for Trump to change his mind and try to revive it.
The department announced the creation of the $1.8 billion fund last month, casting it as an opportunity for victims of purported “weaponisation and lawfare” to seek payouts and formal apologies from the government.
It was established as part of a settlement agreement after Trump sued the Internal Revenue Service for $10 billion. The president and his eldest sons, who were also plaintiffs in the lawsuit, would receive an apology but would not be paid from the fund under the deal.
The settlement also granted the president, his sons Donald Trump Jr and Eric and the Trump Organization immunity from existing IRS tax audits.
The fund was widely criticised as an avenue for rioters convicted over the January 6th 2021 attack on the US Capitol to obtain compensation from the government, though the department said there would be “no partisan requirements” to file a claim.
Although the fund’s creation was cheered on by Trump’s supporters, it has been seen as a liability on the campaign trail for Republicans ahead of November’s midterm elections and a distraction from the vital cost-of-living concerns driving voter sentiment.
Democrats have described the fund as an abuse of executive power. Senate minority leader Chuck Schumer on Monday said Senate Democrats would push legislation this week to ban similar future funds.
“If Trump and Republicans are truly abandoning this corrupt scheme, they should have zero problem banning it in law,” he wrote on X. – Copyright The Financial Times Limited 2026
