Trump Pauses $1.8 Billion Fund After Bipartisan Backlash

U.S. President Donald Trump has paused his administration’s proposed $1.8 billion “anti-weaponisation” fund after bipartisan pushback in Congress, according to U.S. media reports on Monday, June 1, 2026. The White House had not publicly confirmed the reports. The Department of Justice said it would comply with a court order that temporarily blocks the plan while litigation proceeds.

The fund was announced last month as part of a settlement between Trump and the Internal Revenue Service (IRS). Justice Department documents said the money was intended to compensate people described by the administration as victims of “lawfare” and government “weaponisation.”

Democrats and some Republicans questioned the legal basis for creating the fund and raised conflict-of-interest concerns, arguing it could be used to steer payments to Trump’s allies. Senate Minority Leader Chuck Schumer said he would pursue legislation to prevent future presidents from setting up similar funds, saying a reported pause did not resolve the underlying issues.

Republican leaders raise concerns

The reported move came after congressional leaders urged the administration to drop the plan, including members of Trump’s party. House Speaker Mike Johnson and Senate Majority Leader John Thune were among Republican leaders who publicly expressed reservations about the fund.

Thune’s comments came as he sought to rally Republicans behind a $72 billion immigration enforcement funding bill, according to the source material. The fund dispute added to broader legislative tensions as lawmakers pressed the administration for clarity on how any payments would be determined and who would qualify.

Legal challenges and settlement details

At least three lawsuits were filed seeking to block the fund’s creation, including one brought by police officers injured during the January 6, 2021, attack on the U.S. Capitol. Last week, a federal judge temporarily blocked the plan while the court reviews the case.

Separately, the settlement that led to the fund’s announcement drew scrutiny after the Department of Justice disclosed that it included lifelong immunity from IRS audits for Trump and his family, according to documents described in the source material. Critics argued that the settlement and fund raised questions because Trump oversees the executive branch agencies involved.

Further court proceedings and any congressional action will determine whether the fund can be revived, modified, or permanently blocked.