1.8B

WASHINGTON — Acting Atty. Gen. Todd Blanche said Tuesday that the Trump administration was scrapping plans to create a $1.8 billion fund meant to compensate allies of the Republican president after widespread political backlash and setbacks in the courts.

“We are not moving forward with the fund, period,” Blanche said in response to questions at a House hearing on the Justice Department budget.

““Not moving forward, ever?” asked Rep. Grace Meng, a New York Democrat.

The blunt declaration marked an extraordinary turnabout for a Trump Justice Department that just two weeks ago had pronounced the fund as essential to make up for what officials insist was weaponized law enforcement during President Biden’s Democratic administration. Since then, though, the idea has faced mounting pressure from Republicans who demanded reassurances that plans for the fund were off the table before they would move forward with legislation funding President Trump’s immigration enforcement agencies.

Blanche said the Justice Department was not abandoning an element of a settlement with the IRS that gave Trump and his family immunity from tax audits.

The hearing before a House Appropriations subcommittee was scheduled for discussion of the Justice Department’s budget, but lawmakers quickly focused their questioning on the creation of a fund that has provoked outrage over the mere possibility that violent pro-Trump rioters who stormed the U.S. Capitol on Jan. 6, 2021, could be eligible for payouts.

Signs for the retreat surfaced Monday when a person familiar with the matter said the Republican president was now reconsidering whether to move forward with the fund established to resolve his lawsuit against the Internal Revenue Service over the leak of his tax returns. The Justice Department also said Monday it would comply with a Virginia court temporarily blocking the administration’s “Anti-Weaponization Fund,” effectively agreeing to pause the plan for at least two weeks.

Another judge in Florida raised the prospect of reopening the IRS lawsuit because of “grievous allegations” of improper dealing made against the administration by settlement critics.

The Trump administration has defended the fund as an appropriate measure to make up for what officials insist was a weaponized Justice Department during President Joe Biden’s Democratic administration, a claim the Biden administration strongly denied. Though some Trump supporters, including participants in the Capitol riot, have celebrated the announcement, the reaction among Republicans in Congress has been decidedly more hostile, forcing Blanche to try to assuage a GOP constituency that generally operates in close alignment with the administration.

The furor has especially complicated matters in the Senate, where Republicans defiantly left town 10 days ago without passing legislation to fund Trump’s immigration enforcement agencies. Republicans who returned to Washington on Monday said they won’t have the votes to pass the Homeland Security spending bill until the White House works with them to place parameters on the fund. Many have pushed the administration to impose limits or scrap the idea altogether.

At a Senate budget hearing last month, Blanche refused to rule out the possibility that those who carried out violence on Jan. 6 could be eligible for payouts and has repeatedly said in interviews that anyone who feels persecuted by the criminal justice system is free to apply. Payouts will be decided by a five-member commission appointed by Blanche.

But he has apparently struck a more conciliatory tone in private when confronted by Republican anger.

Blanche encountered a groundswell of opposition last month at a tense private meeting with GOP senators, with more than half raising concerns, including by shouting at the Justice Department’s top official, Republican Sen. Ted Cruz of Texas said in a recent episode of his podcast.

“There were fireworks at an epic level — and I’ve got to say, it’s one of the roughest meetings I’ve seen in my entire time in the Senate,” Cruz said.

Behind closed doors, Blanche was “adamant” that no one who assaulted police at the Capitol would receive compensation, according to Cruz.

“He said not just ‘no,’ but ‘hell no,’” the senator recalled.

Tucker and Richer write for the Associated Press.

WASHINGTON — A federal judge on Friday temporarily blocked President Trump’s administration from paying any claims through a new $1.776 billion settlement fund for the Republican president’s allies who believe they were victims of a weaponized government.

U.S. District Judge Leonie Brinkema in Alexandria, Va., also barred the government from moving forward with the fund’s creation while litigation is pending to challenge it.

The judge, who was nominated to the bench by President Clinton, a Democrat, scheduled a June 12 hearing for arguments on whether to extend the order blocking payouts from an “Anti-Weaponization Fund.” The government created the fund to resolve Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns.

The White House declined to comment on the judge’s ruling and referred all questions to the Justice Department, which didn’t immediately respond to a request for comment.

The fund has generated a fierce backlash since it was announced last week, with even Republicans pressing acting Atty. Gen. Todd Blanche over the eligibility considerations and the possibility that even violent rioters at the U.S. Capitol on Jan. 6, 2021, would be free to seek compensation.

The Justice Department hasn’t formed the five-member commission that will decide on payout criteria, so there has been no money paid out yet or claims accepted.

Plaintiffs’ attorneys from the legal advocacy group Democracy Forward are seeking a court order halting the fund’s implementation and preventing the Trump administration from disbursing any payouts from it. The federal suit claims there is no legal basis or accountability behind the fund.

The Virginia lawsuit’s plaintiffs include a fired prosecutor and a college professor acquitted of assaulting federal agents at a protest.

“The unlawfulness that has imbued the Anti-Weaponization Fund from its inception requires that it be wholly dismantled,” the suit says.

At least two other lawsuits, both filed separately in Washington, also are challenging the fund’s creation. A lawsuit filed by the advocacy group Citizens for Responsibility and Ethics in Washington refers to the fund as “a jaw-dropping act of presidential corruption.” Two police officers who helped defend the Capitol from a mob of Trump supporters sued last week.

During a congressional hearing, Blanche wouldn’t rule out the possibility that rioters who assaulted police on Jan. 6 could be eligible for fund payouts.

Nearly 1,600 people were charged with Capitol riot-related federal crimes. Over 1,200 were convicted and sentenced before Trump handed out mass pardons, commuted prison sentences and ordered the dismissal of every pending Jan. 6 criminal case last year.

Kunzelman writes for the Associated Press. AP writers Darlene Superville, Alanna Durkin Richer and Eric Tucker contributed to this report.

WASHINGTON — Acting Atty. Gen. Todd Blanche on Tuesday wouldn’t rule out the possibility that people who carried out violence during the Jan. 6, 2021 riot at the U.S. Capitol will be considered for payouts from a new $1.776 billion fund to pay individuals who believe they were targeted politically.

Pressed during a Congressional hearing over whether those who assaulted police officers would be eligible for compensation from the “Anti-Weaponization Fund,” Blanche responded that all people can apply if “they believe they were a victim of weaponization.” The acting attorney general also refused to say whether he would direct those responsible for deciding who receives payments — a commission whose members he is tasked with appointing — to restrict funds to those convicted of violence.

“What I will commit to is making sure that the commissioners are effectively doing their jobs, and that includes setting guidelines as you’re describing,” Blanche told Sen. Jeff Merkley, an Oregon Democrat. The decisions on payouts will be made a five-member commission appointed by the attorney general.

Appearing before Congress for the first time since taking the reins of the Justice Department last month, Blanche was peppered with questions about the fund announced on Monday to compensate those who believe they were mistreated by prior administrations’ Justice Department. Blanche said the fund was “unusual” but not unprecedented, adding that those who benefit will not be limited to Republicans or to people who were investigated or prosecuted by the Biden administration. At one point, Blanche said President Joe Biden’s son, Hunter — who faced gun and tax prosecutions under his father’s administration — could also apply.

Blanche defends $1.8 billion fund

Tuesday’s hearing was meant to address the Trump administration’s budget request for the Justice Department but quickly delved into other controversies that have escalated concerns about the erosion of the law enforcement agency’s tradition of independence from the White House. Blanche defended the creation of the fund without any acknowledgment that the Trump administration has pursued investigations of Trump’s political opponents, sparking criticism that the department is being weaponized in precisely the same way they allege it was under Biden’s administration to prosecute Trump.

In the weeks since assuming control of the Justice Department after Pam Bondi’s firing, Blanche has moved aggressively to advance the president’s priorities — pushing forward cases against Trump’s political foes, cracking down on leaks to media outlets and establishing the new fund to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

Democrats described it as an illegal abuse of power designed to line the pockets of Trump supporters with taxpayer dollars. Sen. Chris Van Hollen, the top Democrat on the Senate appropriations subcommittee holding the hearing, blasted the move as a “pure theft of public funds.”

“Rewarding individuals who committed crimes is obscene,” the Maryland Democrat said. “Every American can see through this illegal, corrupt, self-dealing scheme.”

The fund is in keeping with Trump’s long-running claims that the Justice Department during the Biden administration was weaponized against him, even though then-President Biden himself was investigated during that time and his son was prosecuted. Merrick Garland, who served as attorney general during the Biden administration, has repeatedly denied allegations of politicization and has said his decisions followed facts, the evidence and the law.

Trump administration has been rewriting the history of Jan. 6

The mere possibility that violent rioters at the Capitol could be considered for payouts is consistent with a Trump administration pattern of rewriting the dark history of Jan. 6, a trend that began when the president pardoned and commuted the prison sentences of the participants in the melee and that continued with the Justice Department firing some prosecutors who put them behind bars.

Under questioning from Merkley, Blanche said that he “will definitely encourage the commission” responsible for deciding on the payouts to “take everything into account.” But when asked whether he believes those convicted of violence should be entitled to compensation, Blanche said: “My feelings don’t matter.”

When Merkley suggested that Trump was using the Justice Department to target his political enemies, Blanche replied that this was precisely the sort of “disgusting” behavior of the Biden administration that the fund was meant to address.

“That is completely inappropriate and wrong,’ Merkley said. “There is no comparison to the absolute fair minded pursuit of justice under the previous administration, and this administration’s pursuit of an enemies list.”

Questions over the meaning of ‘weaponization’

In announcing the fund Monday, the Trump administration did not name specific individuals who might stand to benefit from it. The money itself would come from the federal judgment fund, which pays out court judgments and compromise settlements of lawsuits against the government.

Blanche told lawmakers that the Justice Department is committed to “full transparency” in providing public information about beneficiaries of the new fund.

“It’s not limited to Republicans. It’s not limited to Democrats. It’s not limited to January 6th defendants. It’s limited only by the term weaponization,” Blanche said, though the administration has not said how it will define “weaponization.”

Meanwhile, there were signs of discomfort about the fund even among some Republican members of Congress. Senate Majority Leader John Thune told reporters that he’s “not a big fan,” adding that he isn’t sure how the administration intends to use it, but doesn’t “see a purpose for that.”

Thune’s comments come after Louisiana Sen. Bill Cassidy, who lost reelection in a GOP primary on Saturday, called it a “slush fund.”

“We are a nation of laws,” Cassidy said. “You can’t just make up things.”

Richer and Tucker write for the Associated Press. AP reporter Mary Clare Jalonick in Washington contributed to this report.