bipartisan

Trump’s $1.8-billion fund unravels amid court setbacks, bipartisan pushback

The Trump administration is backing away from plans to create a $1.8-billion fund to compensate people who claim the government was weaponized against them, a retreat that comes amid a cascade of legal setbacks and a revolt within members of the Republican Party.

But Senate Democrats say the concession is not enough, and are pushing legislation to ensure no president can ever attempt the creation of such a fund again.

“If Republicans are serious about ending this brazenly corrupt scheme, they should have no problem voting for legislation banning any president from creating such a slush fund in the future,” Sen. Adam Schiff (D-Calif.) wrote Monday in a post on X.

Senate Minority Leader Chuck Schumer (D-N.Y.) added that Democrats plan to force a vote on a measure to ensure that Trump and Republicans are “truly abandoning this corrupt scheme.”

“Trump’s word is nowhere near enough,” Schumer wrote on X. Earlier in the day, Schumer vowed to force a floor vote to make Republican lawmakers take a public stance on the issue.

Schiff, along with Sens. Mark Kelly of Arizona and Elissa Slotkin of Michigan, introduced the “Drain the Slush Fund Act” on Monday. The bill, if approved, would bar any payout arising from a lawsuit filed by a president or vice president, language that is designed to permanently foreclose the fund, or anything like it, from being put in place by a future administration.

The White House did not comment on the president’s thinking. But in a statement, the Department of Justice said the decision to scrap the fund was in response to a federal judge’s ruling last week that temporarily blocked payouts from the fund while legal challenges remain pending. The department said it “disagrees strongly” with the move, but stopped short of saying it would challenge the decision.

“This fund was open to anybody who was so weaponized, targeted, or persecuted, whether they were Democrat, Republican, Conservative, Independent, or otherwise,” the statement read. “The Department will abide by the Court’s ruling.”

U.S. District Judge Leonie Brinkema, who was nominated to the bench by President Clinton, a Democrat, has scheduled a June 12 hearing for argument on whether to extend the order blocking the fund.

While the court ruling is not permanent, the unraveling over the fund is a notable defeat for Trump, who has cast it as a long-overdue reckoning for Americans he says were targeted by “an evil, corrupt and weaponized Biden administration.” For Republicans who publicly criticized the fund, it may come as a relief as the concept had been widely seen as a political liability heading into the midterm elections.

The Department of Justice created the fund to settle a lawsuit Trump personally brought against the Internal Revenue Service over the leak of his tax returns. The settlement also includes a clause permanently barring the IRS from pursuing any tax claims against Trump and his businesses that were filed before May 19 — a provision that, according to an analysis by Forbes, would save Trump and his family more than $600 million.

The White House declined to comment on whether the administration would also make changes to the tax immunity clause. The Democrats’ bill does not address that provision.

“Congress doesn’t need to pass a law to remind the Acting Attorney General [Todd Blanche] that he doesn’t have the authority to grant a blanket pardon for tax crimes by the president, much less when the AG is his personal attorney,” a Schiff spokesperson said in a statement. “The attempt at IRS immunity is corrupt and undoubtedly illegal — and we look forward to seeing it exposed as a fraud.”

Beyond Trump’s own legal disputes with the IRS, the fund was structured to accept claims from anyone who said they had been targeted by the government, a category the administration made clear could include those who were convicted for attacking the U.S. Capitol on Jan. 6, 2021.

Trump pardoned and commuted the prison sentences of 1,500 people who were charged in connection with the attack, and neither he nor Vice President JD Vance ruled out the possibility that those individuals would be able to receive money from the fund.

That possibility immediately ran into trouble with lawmakers. Senate Republicans, many of whom were caught off guard by the arrangement, publicly revolted against the fund and derailed plans to vote on legislation to fund Trump’s immigration crackdown amid the deep disagreement.

A closed-door meeting last month between Blanche and GOP senators grew heated, with lawmakers demanding answers the administration was seemingly not prepared to give.

Sen. Ted Cruz (R-Texas), who attended the meeting, described it as “angry” in an episode of his podcast last month. Cruz said that roughly 45 Senate Republicans had attended and estimated that “at least half of them were blasting the attorney general.” Based on those reactions, Cruz predicted the administration would need to amend its position on the fund.

“We will see the administration announcing at a minimum a modification of this, because if they don’t they’ve got a full-on revolt in the Senate,” he said.

The fund also led to criticism outside of Congress. Former Vice President Mike Pence, who served in Trump’s first administration, told NBC News in an interview Sunday that it was a “bad idea from the start.”

“I would encourage the administration just to drop it,” Pence said.

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Bipartisan bill proposes $130 fee for electric vehicles

May 19 (UPI) — A bipartisan bill in the U.S. House is proposing a new $130 fee for registering an electric vehicle to help pay for transportation infrastructure.

The Five-Year Surface Transportation Reauthorization bill was introduced on Sunday by Reps. Sam Graves, R-Mo., and Rick Larsen, D-Wash. As proposed, it would require an annual $130 registration fee for electric vehicles and $35 for plug-in hybrids.

Graves said in a statement that the bill “ensures that electric vehicle owners begin paying their fair share for the use of our roads.”

Currently, the Highway Trust Fund is used to pay for county roads, bridges, railways and other infrastructure projects. The fund is filled by taxes on gasoline.

“The ‘user pays’ principle has been fundamental to how we fund our nation’s surface transportation system for as long as I’ve been in Congress,” Larsen said in a statement. “I support that principle and worked to make sure that this new fee on EVs is fair and not punitive.”

Albert Gore III, executive director of the Zero Emission Transportation Association, said the fees would penalize electric vehicle owners. The organization estimates that the fee is higher than what is collected on the gas tax on a per-consumer basis.

The federal gasoline tax is about $0.18 per gallon. It has not changed since 1993.

“I don’t argue that the number should be zero, but the number should be fair,” Gore said.

Congress eliminated electric vehicle subsidies last year, totaling about $7,500 per vehicle, as part of an effort to peel back sustainability and environmental efforts enacted under the Biden administration.

Fees on electric vehicle owners are in place in at least 41 states,

Vice President JD Vance speaks during a news conference on anti-fraud initiatives in the Indian Treaty Room of the Eisenhower Executive Office Building at the White House on Wednesday. Photo by Daniel Heuer/UPI | License Photo

including Colorado and New Jersey, ranging from $50 to $260.

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Hegseth faces bipartisan grilling about weapons drawdown during the Iran war

Defense Secretary Pete Hegseth faced tough questions Tuesday from Republican and Democratic lawmakers about the Trump administration’s end game for the Iran war, the cost of the conflict and its impact on diminishing U.S. weapons stockpiles.

For his part, the Pentagon chief softened his tone from hearings before Congress nearly two weeks ago, notably avoiding the same pointed criticism of lawmakers in his opening remarks as he outlined the Trump administration’s efforts to ramp up production of weapons and other military capabilities.

Even so, Hegseth insisted that the military has plenty of missile defense systems and other munitions for the Iran war or future conflicts as both Republicans and Democrats hammered him with those concerns.

“I take issue with the characterization that munitions are depleted in a public forum,” Hegseth said. “That’s not true.”

The cost of the Iran war has risen to about $29 billion, the vast bulk of which — $24 billion — is related to replacing and repairing munitions but also includes operational costs to keep forces deployed, Pentagon comptroller Jay Hurst said. That’s up from $25 billion that he told lawmakers nearly two weeks ago.

The powerful House and Senate Appropriations subcommittees that oversee defense spending are holding back-to-back hearings to review the Trump administration’s 2027 military budget proposal, which calls for a historic allocation of $1.5 trillion. The discussions in the House quickly veered into the handling of a war that appears locked in a stalemate as higher fuel prices pose political problems for Republicans in the midterm congressional elections.

Hegseth and Caine face bipartisan pushback on munitions stockpiles

Rep. Rosa DeLauro, the ranking Democrat on the House Appropriations Committee, told Hegseth that the “question must be answered at the end of this crisis: What have we accomplished and at what cost?”

“This administration has not presented Congress with any kind of clear or coherent strategy week to week, day to day, hour to hour,” DeLauro said. “The rationale shifts, the objectives change. The end game is ill-defined when it is defined at all.”

California Republican Rep. Ken Calvert, the House subcommittee’s chair, also asked about the impact of the Iran war on military funding as well as the U.S. military’s weapons stockpiles.

“Questions persist about whether we are building the depth and reliance required for a high-end conflict,” Calvert said.

Minnesota Rep. Betty McCollum, the defense subcommittee’s ranking Democrat, pressed Hegseth on whether the military has a plan to draw down troops in the Middle East if Congress passes so-far-unsuccessful efforts to end the Iran war.

“We have a plan to escalate if necessary,” Hegseth said. “We have a plan to retrograde if necessary. We have a plan to shift assets.”

He said he would not reveal any next steps publicly. Noting repeated questions from lawmakers over the military’s weapons stockpiles, drawn down from the Iran war, Hegseth said the concerns have been “unhelpfully overstated” and that “we have plenty of what we need.”

He said the defense industry has been told to “build more and build faster,” blaming the military industrial base’s inadequate capacity on previous administrations and U.S. aid to Ukraine in its war with Russia.

Trump administration faces pressure from impact of the Iran war

President Trump is facing increasing pressure from the economic shocks of Iran effectively closing the Strait of Hormuz, a vital shipping corridor where 20% of the world’s oil normally flows. The U.S. military in turn has blockaded Iranian ports and the two sides have traded fire, with American forces thwarting attacks on their warships and disabling Tehran-linked oil tankers.

Trump said Monday that the ceasefire is on “massive life support” and criticized Iran for its latest proposal, pointing to his demands that Iran significantly limit its nuclear program.

“I would call it the weakest right now after reading that piece of garbage they sent us,” Trump said.

The Republican president also said he wanted to suspend the federal gas tax to help Americans shoulder surging fuel prices. He has previously said higher costs are worth it to prevent Iran from getting a nuclear weapon.

Tuesday’s hearings are giving a mostly new group of lawmakers the chance to grill or applaud Hegseth and Gen. Dan Caine, chair of the Joint Chiefs of Staff, on the planning and execution of the war.

The Senate hearing later Tuesday will include Sen. Susan Collins of Maine, a Republican whose reelection this year is far from guaranteed. She voted with Democrats on an effort to halt the conflict late last month, saying she wants to see a defined strategy for bringing the war to a close.

Alaska Sen. Lisa Murkowski, another Republican on the Senate Appropriations defense subcommittee, has voted against the string of unsuccessful war powers resolutions but spoken of the need for congressional authorization so Americans will know the war’s limits and objectives.

He also will face plenty of friendly Republicans, including the Senate subcommittee’s chair, Sen. Mitch McConnell of Kentucky, and perhaps the Iran war’s biggest booster in Congress, Sen. Lindsey Graham of South Carolina.

Finley, Toropin and Barrow write for the Associated Press. Barrow reported from Atlanta.

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