The US Department of Justice has abandoned a controversial $1.8bn (£1.3bn) compensation fund after facing fierce opposition from Republican lawmakers, marking another instance of President Donald Trump encountering resistance from within his own party.
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The so-called "anti-weaponisation" fund was unveiled as part of a settlement linked to a lawsuit Trump withdrew against the Internal Revenue Service (IRS). The programme was designed to compensate people whom the administration determined had been unfairly targeted by the Biden administration.
Republican Revolt Ends Controversial Fund
The proposal immediately sparked criticism across Washington. Lawmakers from both parties objected to provisions that shielded Trump, his family and his businesses from current IRS audits. Critics also raised concerns that people convicted over the 6 January 2021 attack on the US Capitol could potentially receive compensation, a possibility administration officials declined to rule out.
Pressure Builds in Congress
Republican opposition intensified rapidly after the plan was announced in May. During a private meeting with Acting Attorney General Todd Blanche, several Republican senators reportedly condemned the programme, arguing it appeared to benefit the president personally.
The backlash soon extended beyond criticism. Republicans began slowing progress on legislation intended to fund US Immigration and Customs Enforcement and Customs and Border Protection, signalling that the fund could jeopardise one of Trump's key immigration priorities.
Senate Majority Leader John Thune publicly urged the administration to withdraw the proposal, saying the administration should resolve the matter itself.
At the same time, Democrats vowed to oppose related legislation, while legal challenges were filed seeking to block the programme. A federal judge later ordered the Justice Department to suspend the fund while litigation proceeded.
A Pattern of Republican Resistance
The collapse of the fund reflects a broader trend during Trump's second term, with some Republicans showing a greater willingness to challenge the president when they believe he has overreached.
Recent examples include Republican support for efforts to limit the duration of US military involvement in Iran and votes compelling the Justice Department to release files connected to deceased sex offender Jeffrey Epstein.
Unlike previous controversies, many Republicans were quick to criticise the DOJ fund and few publicly defended it. Some viewed the initiative as a political liability at a time when Trump is dealing with a costly conflict involving Iran, rising fuel prices and weak approval ratings ahead of midterm elections.
A former Trump adviser described the proposal as a needless political mistake that risked harming Republicans electorally.
Fund Cancelled but Dispute Continues
After initially suspending the programme, Blanche confirmed on Tuesday that the administration would not proceed with the fund.
However, questions remain over whether the issue is fully resolved. Blanche declined to commit the decision to writing, prompting some critics to worry that a future administration could attempt to revive the concept.
Democratic and Republican lawmakers have already proposed legislation that would restrict presidents from using taxpayer funds to reward political allies. Republican Senator Thom Tillis argued that formally ending the programme was the only way to bring the controversy to a close.
Democrats, meanwhile, have pledged to continue pursuing legal and legislative action. Senate Minority Leader Chuck Schumer said the administration's verbal commitment was insufficient and called for permanent legal measures to prevent any similar fund from being created in the future.
Political Fallout Ahead
Although the programme lasted only two weeks, it has become a significant political flashpoint. Democrats are expected to use the controversy in campaign messaging ahead of the upcoming midterm elections, while Republicans continue to seek safeguards against similar initiatives.
The episode underscores the limits of Trump's influence within his party and highlights growing signs that some Republican lawmakers are prepared to oppose the president when they believe his actions could damage the party politically or raise concerns about the use of executive power.
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Adapted by ASEAN Now. Source 4 June 2026