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Newsom signs off on 100% California tax for money from Trump’s $1.8-billion ‘slush fund’

Gov. Gavin Newsom has signed off on a 100% state tax on money any Californians receive from Trump’s $1.8-billion “anti-weaponization” fund for his political allies.

Newsom unveiled his proposal in May, after Trump’s Justice Department said it would create a fund to compensate Trump’s allies who claim they have “suffered weaponization and lawfare” under Biden’s Justice Department.

The settlement fund was criticized by politicians on both sides of the aisle, including Sen. Mitch McConnell (R-Ky.), who described it as a “slush fund to pay people who assault cops.”

The fund remains in legal limbo. Earlier this month, a federal judge in Virginia extended a court-ordered block on the plan, which critics warned could be used to pay pardoned Jan. 6 rioters.

Fast-tracked into law as part of Senate Bill 122, Newsom’s plan imposes “a tax on any settlement fund payment from the federal Anti-Weaponization Fund, or any subsequent fund, settlement, or agreement, as provided, at a rate of 100%,” according to the bill text. The tax applies to all tax years between 2026 and 2030.

Newsom signed the bill Tuesday. In a statement, his office said the tax is meant to ensure that, should Trump’s fund proceed, California recipients won’t “receive favorable state treatment on those payments.”

“We believe democracy is worth defending, the rule of law matters, and public dollars should support victims—not those who attacked the very institutions that protect our freedoms,” Newsom said in the statement.

University of Southern California law professor Ariel Jurow Kleiman, an expert on tax law and policy, said that while Newsom’s tax is a “novel legal strategy,” she believes there is “no categorical legal restriction” preventing California from implementing it.

States have a “wide degree of discretion” to design their tax systems — including how they define income — so long as they do not violate their constitutions, Jurow Kleiman said.

If a California resident wanted to challenge the tax in court, they would need to show they were harmed by it to have standing to sue, according to Jurow Kleiman. That would mean receiving a payment from Trump’s settlement fund and then paying the 100% California tax. Unless the settlement fund is established and distributes payments, that scenario is unlikely.

While there have been proposals to levy a 100% tax on income above certain thresholds — Sen. Bernie Sanders (I-Vt.) in 2023 said he supports a 100% tax on income exceeding $1 billion — Jurow Kleiman said she is not aware of any governments that have adopted such a policy.

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South Korea plans $6.5B fund for security tech firms

SMEs and Startups Minister Han Seong-sook attends a meeting of the emergency economic headquarters at the government complex in Seoul, South Korea, 22 May 2026. Photo by YONHAP / EPA

June 26 (Asia Today) — South Korea plans to create an investment and procurement system aimed at producing homegrown security technology companies comparable to U.S. data analytics company Palantir Technologies, the government said Friday.

The Ministry of SMEs and Startups announced the strategy with the Defense Ministry and Korea AeroSpace Administration during a meeting on future security innovation companies at the Blue House.

The plan seeks to accelerate the transfer of advanced civilian technology into national defense and security.

The government aims to develop five security technology companies valued at more than 1 trillion won ($651 million) and 50 companies with annual sales exceeding 100 billion won ($65.1 million) by 2030.

It will designate five strategic sectors covering drones and robotics, defense artificial intelligence and semiconductors, advanced sensors and materials, aerospace technology and cybersecurity and quantum communications.

Officials described the initiative as an effort to cultivate a “Korean Palantir,” referring to the U.S. company known for software that integrates and analyzes large volumes of defense and intelligence data.

The phrase is a policy description rather than the name of a company the government plans to establish.

Investment vehicle modeled on In-Q-Tel

The ministry plans to establish a government-backed investment organization modeled on In-Q-Tel, the nonprofit strategic investor created to support technologies relevant to U.S. intelligence agencies.

The proposed organization would make direct investments in early-stage security technology companies to address funding shortages.

The government also plans to support the establishment of a technology-focused asset management company tentatively called Korea Strategic Technology Partners.

Through government and private investment vehicles, officials aim to create as much as 10 trillion won ($6.5 billion) in strategic technology financing over the next five years.

The money would provide growth capital to startups and smaller companies developing technologies with potential defense, intelligence, aerospace or cybersecurity applications.

Faster research and procurement

South Korea also plans to introduce a special research and development program modeled on the U.S. Other Transaction Authority system.

The system would connect research, testing and government purchasing under a faster contracting process intended for rapidly changing technologies.

Selected companies could receive as much as 10 billion won ($6.5 million) each over five years.

The Defense Ministry and Korea AeroSpace Administration plan to create procurement systems capable of placing some advanced weapons or technologies into initial service within one year.

The government also plans to expand access to defense data through a catalog showing what information may be available to approved companies.

Aerospace authorities will support the development of core technology for a national space data center and platforms that allow businesses to use satellite information.

The strategy reflects the government’s view that traditional defense procurement moves too slowly for technologies such as artificial intelligence, drones, robotics and cybersecurity software.

Support for smaller technology companies

Minister of SMEs and Startups Han Seongsook said the global security industry is shifting rapidly from traditional hardware toward software, data and artificial intelligence.

“The government will provide bold and rapid support so startups and small venture companies with flexible and creative technologies can become leaders in security innovation,” Han said.

The government also plans to protect companies’ intellectual property rights and allow technologies developed through public programs to be adapted for civilian markets.

Officials said the strategy would help smaller companies enter a defense industry that has traditionally been dominated by large manufacturers and hardware-centered weapons programs.

The ministries plan to form an interagency committee, pursue special legislation and revise contracting rules to support the initiative.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260626010009467

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Trump budget omits L.A. fire relief funds, drawing senators’ criticism

California’s two Democratic senators on Thursday criticized the Trump administration after it requested $87.6 billion from Congress to address some of the nation’s most “urgent needs” but omitted funding for victims of last year’s Los Angeles wildfires.

“Donald Trump’s desire to punish Los Angeles and the state of California for not voting for him, means once again that thousands of Angelinos are left watching this administration fight for anything but them, their businesses, and their communities,” Sens. Alex Padilla and Adam Schiff said in a joint statement.

“These fires did not discriminate based on party or political preference. Neither should this administration,” they added.

The omission is the latest strain in a yearlong standoff between California leaders and the Trump administration over federal disaster aid, and it comes after Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Kathryn Barger met with President Trump at the Oval Office in April to request the funding.

At the meeting, Trump signaled his commitment to working with local officials to help with disaster recovery efforts. The officials asked for $16 billion that would be split between the city and county. The money would consist primarily of disbursements from the Federal Emergency Management Agency flagged for communities hit by the fires, part of a $33.9-billion wildfire relief funding request made by Gov. Gavin Newsom.

Two months later, those talks have yet to yield results sought by local leaders.

The budget request, submitted by the Office of Management and Budget on Wednesday, mostly seeks funding for the Pentagon to address costs related to the Iran war. It also includes $11.1 billion in economic assistance for American farmers, $1.4 billion to address the Ebola virus outbreak in Central Africa, $500 million to support “ongoing efforts to complete restorations and construction projects” across the nation’s capital and $1 billion to boost the pensions of workers at General Motors that were cut as a result of the automaker’s bankruptcy.

“I urge the Congress to take action on these important and urgent requests as soon as possible,” White House budget director Russell Vought wrote in a letter addressed to House Speaker Mike Johnson (R-La.).

Vought said the administration was open to discussing “additional relief for other urgent matters.” The White House did not immediately respond when asked why the budget request did not mention the Eaton and Palisades disaster relief funds.

State leaders, including Newsom, have repeatedly accused the Trump administration of stonewalling billions in wildfire aid. The governor visited Washington in December to meet with lawmakers, including three who serve on the Senate and House appropriations committees, to push for the funding.

The governor also attempted to meet with FEMA about the matter, but said his request was denied. Newsom, a political foe of Trump’s, would not say whether he had attempted to meet with Trump to talk about the recovery efforts.

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Democrats say money from Trump’s tax cuts bill is paying for White House ballroom project

More than $350 million from President Trump’s “big, beautiful bill” has been quietly directed to White House security, an allotment that Democrats warn appears to be helping fund his new ballroom project — despite the president’s insistence that no taxpayer dollars would be used.

The apportionment of funds, which the White House’s Office of Management and Budget made late Friday, comes from two accounts that were intended to provide the U.S. Secret Service with extra money for hiring and training in the aftermath of last year’s assassination attempts on the president, according to Democrats on the Senate Budget Committee. The shift was made days after Congress rejected a $1-billion request for the White House in a Homeland Security bill that Trump signed into law and as the ballroom project is tangled in legal challenges.

Senate Judiciary Committee chairman Chuck Grassley, whose panel initially drafted the security funding, said Thursday he was unaware of the allocations.

“The president said that it was all going to be paid for with private money,” said Grassley (R-Iowa). “And that’s what the country expects.”

Sen. Jeff Merkley of Oregon, the top Democrat on the Senate Budget Committee, charged that Trump’s actions are potentially illegal.

“After repeatedly telling the American people that zero taxpayer dollars would be spent on his gold-plated ballroom boondoggle, now Trump appears to be using a smoke and mirrors tactic,” Merkley said in a statement.

“Trump has proven that he can’t be trusted to follow the law,” Merkley said. “He only cares about wasting taxpayer money on his vanity projects.”

Ballroom project hits setbacks

Trump has faced setbacks in his attempts to build the ballroom on the White House grounds, where he ordered the demolition of the storied East Wing to make way for it.

Touring the construction site last month, Trump called the development a “gift” to the American people. He has repeatedly said that it is being paid for by donations — which has also run into ethics questions from watchdogs concerned about potential corruption and conflicts of interest.

Congress refused the Trump administration’s request for $1 billion for the ballroom last month. The administration wanted the money as part of a Homeland Security bill, but Republican and Democratic lawmakers rejected efforts to tack it on. It became politically toxic at a time when Americans are reeling from inflationary high costs of living.

The Washington Post reported earlier this week that the price tag for the project has ballooned to $600 million, according to a project summary prepared by the contractor, with more than half of that funding coming from taxpayers. Roll Call first reported on the apportionment of new funds for White House security.

At its core, arguments are swirling over how much of the White House project is to bolster security underground, with bomb shelters and a medical facility, and how much of the costs are related to the president’s promised 999-seat ballroom on top.

White House says Trump and donors are paying for the ballroom

A spokesman for the White House said that Trump and donors are funding some $400 million for the ballroom development, and that the coordination with the Secret Service had been noted in the initial announcement of the project.

“The East Wing Modernization Project is inextricably tied to the security of the President, the White House grounds and the certain security infrastructure assets,” said White House spokesman Davis R. Ingle in a statement.

He said the events over the past weekend, including an alleged attack plan targeting the UFC Freedom 250 event at the White House, proves why the project is needed.

“President Trump and generous American patriots are funding the ballroom to the tune of approximately $400 million, which will be a secure and appropriate venue for Presidents for generations to come,” he said.

Government lawyers have argued that the project includes critical security features to guard against a range of threats, such as drones and missiles.

The White House has said in court documents that the East Wing project would be “heavily fortified,” including bomb shelters, military installations and a medical facility underneath the ballroom. The Secret Service told senators last month that $220 million of the White House’s $1-billion request would go to harden the ballroom addition, with bulletproof glass, drone detection technologies, chemical and other systems.

The rest of the money would go for other security improvements, according to a document provided to Senate Republicans, including $180 million for a new, “long overdue” White House visitors screening facility.

Congress holds power of the purse

The shifting funds are certain to ignite growing concerns in Congress over the separation of powers, and the president’s use of federal funds allocated by lawmakers.

The money comes from Trump’s big tax breaks and spending cuts bill that the president signed into law last summer. It provided more than $1 billion for Secret Service resources, including “personnel, training facilities, programming, and technology; and performance, retention, and signing bonuses.”

The provision was uncontested at the time, even as Democrats voted against the broader bill. Democrats said they did not challenge this section or try to strip it out from the package.

Under the Constitution, only Congress has the specific authority to allocate funds across the federal government, including the executive and judicial branch operations.

While the president holds the power to sign — or veto — those appropriation bills, once the funding becomes law, it largely must stand.

Mascaro writes for the Associated Press.

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Ex-officer for L.A. firefighters union charged with stealing from charity

A former top officer of the Los Angeles Fire Department’s labor union was arrested Wednesday and charged with grand theft and forgery for allegedly stealing more than $82,000 from a charity for injured firefighters.

Prosecutors from the state attorney general’s office announced the charges against Adam Walker, former secretary of the United Firefighters of Los Angeles City, at a news conference.

Walker “abused a position of trust for personal gain,” Atty. Gen. Rob Bonta said alongside Los Angeles County Dist. Atty. Nathan Hochman.

Walker opened a foundation bank account and transferred funds to his personal accounts, Bonta said, attempting to conceal those transfers with fake reimbursement records and forging receipts to mislead auditors. He used the funds for personal expenses, including online gambling, Bonta said.

Walker has been under scrutiny since 2024, when the local union’s parent organization, the International Assn. of Fire Fighters, suspended him from his union position and accused him of improperly depositing more than $75,000 of the charity’s funds into his personal accounts from December 2022 to January 2024. The IAFF accused him of using $5,000 for personal expenses.

Walker, who continued to work as a firefighter, told The Times last year that those allegations were false. He said the account he drew from was not for the charity, the UFLAC Fire Foundation, but was set up for two golf tournaments to raise money for a disabled former firefighter. He said all of the deposits were reimbursements for his legitimate out-of-pocket expenses for the tournaments.

“Not one penny of the money was foundation money,” he said. He said he understood that the deposits “look bad” but were a reflection of his “poor bookkeeping” and not any wrongdoing.

The Washington D.C.-based IAFF also suspended Walker from his positions as chairman and director of the foundation, which aids injured firefighters and their families, provides scholarships and is helping firefighters who lost their homes in the January fires.

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Will a US-Iran deal unlock $300bn in investment fund for Tehran? | US-Israel war on Iran News

The US-Iran memorandum of understanding expected to be formally signed in Switzerland on Friday could allow for the establishment of a $300bn investment fund for Iran, as part of a broader settlement to end the war that triggered a global energy crisis and upended markets worldwide.

US Vice President JD Vance told CBS News on Monday that the incentives would be connected to Iran’s “performance” in adhering to the deal, which was digitally signed by both sides on Sunday.

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The scale of the financial incentives grabbed the headlines due to US President Donald Trump’s longstanding criticism of a 2015 nuclear accord that he claimed delivered economic benefits to Tehran.

In a bid to manage perceptions around this politically sensitive issue, Trump took to his Truth Social platform to claim that “the story that the US is paying Iran 300 million Dollars is Fake News,” while Vance told CBS News that the money would not be a US payout in exchange for Iran’s enriched uranium.

“When people say that billions of dollars of assets will be released, that’s not true,” the vice president told the CBS Morning programme. “What is true is that Iran will have a much better and much more prosperous future if they meet the obligations they make in this agreement.”

What do we know about the $300bn investment fund?

Vance said the deal “fundamentally extends a hand to Iran and says, ‘Look, if you guys are willing to honour your obligations, if you’re willing to allow real inspections of your nuclear programme, then we will welcome you back into the world economy.’

“That’s the sort of thing they could have access to, funded by the Gulf Coast coalition, so long as they honour their end of the obligation,” Vance told CBS. He also claimed that while US money would not be injected, economic opportunities could arise once Iran repositions itself in the global economy.

The New York Times quoted sources saying the fund would not come from governments but be created for companies eager to invest in Iran.

Muhanad Seloom, a non-resident senior fellow at the Middle East Council on Global Affairs, said the setup was a no-lose solution for Washington. “If Iran reforms, the administration owns the peace; if it doesn’t, the US loses nothing and the Gulf carries the risk,” he told Al Jazeera.

What about the Iranian frozen assets?

Seloom said the idea of an investment fund was built precisely to escape the optics of releasing Iran’s frozen funds. While the exact amount of Iran’s frozen assets is unclear, official Iranian reports and experts have set the total amount at more than $100bn.

Iran’s economy has been crippled due to years of sanctions imposed on the country by the United States and other nations following the Islamic revolution in 1979, and then amplified over Iran’s nuclear and ballistic missiles programmes. These measures have restricted Tehran’s ability to access its own assets, such as revenues from oil sales, which have been frozen in foreign banks.

Tehran was granted sanctions relief in the wake of the landmark 2015 nuclear deal signed under President Barack Obama, but Trump tore it up in 2018 during his first term. The 2015 deal had put limits on Iran’s nuclear enrichment in exchange for sanctions relief.

Iran’s state-affiliated Mehr News agency reported on Sunday that the 14-point draft memorandum of understanding provided for the release of $24bn in frozen Iranian assets.

Pressed by CBS News on the possibility of releasing frozen funds, Vance said the $24bn figure “just doesn’t appear anywhere in any of the texts that we’ve talked about with the Iranians”.

“What we have said is that we’re willing to talk about unfreezing assets, but a much, much bigger deal is unsanctioning their economy – so long as they make the long-term commitments on the nuclear programme,” the vice president added.

For Iran, where the war inflicted an estimated $29bn damage and the population is struggling with the highest inflation rate since 1942, the investment fund may constitute a much-needed lifeline.

But the optics will not be as favourable, raising a “dignity problem”, Seloom said. “Tehran reads this as supervised, conditional money rather than sovereign relief,” the analyst told Al Jazeera.

Which other contentious issues will be discussed after signing the deal on Friday?

One of the US’s main declared objectives has been to assuage concerns surrounding Iran’s nuclear programme, including a stockpile of more than 440kg (970lbs) of enriched uranium.

The memorandum extends an existing ceasefire arrangement for another 60 days, during which the two sides are expected to hold further negotiations on issues including the disposal of the enriched uranium.

Vance said Tehran had agreed to surrender its stockpile, undergo regular inspections and refrain from producing or buying nuclear weapons, but the full text of the memorandum of understanding has yet to be disclosed.

The reopening of the Strait of Hormuz, which has been subject to competing blockades by the US and Iran, has also been a point of contention. Trump suggested an agreement to reopen the waterway had been reached when he announced a deal on Sunday with the words: “Let the oil flow!”

Speaking to CNBC, however, Vance acknowledged that not all sticking points surrounding the passageway had been resolved. “Well, our expectation is that the strait is gonna be opened in a toll-free way for the long term, and that’s the sort of thing that we’re gonna figure out in these technical negotiations,” he said.

Israel’s ongoing aggression on Lebanon is also expected to create friction, as Iran has insisted any ceasefire deal must include the allied nation. Israel has so far rejected any arrangement that would limit its ability to strike what it says are Hezbollah targets. Defence Minister Israel Katz on Friday said the military would continue operating in Lebanon regardless of any agreement with Tehran.

Mixed reactions to the agreement

Iranian ⁠⁠Foreign ⁠⁠Minister Abbas Araghchi said the memorandum of understanding would reap economic benefits for Iran but stressed that Tehran would not rely on those benefits for all of its needs.

“We have a history of broken promises, non-compliance, and the tearing up of agreements,” Araghchi said on Monday, according to Press TV. He said discussions about the lifting of US sanctions and Iran’s nuclear programme would be held during a 60-day period of negotiations following the official signature on Friday.

Iran’s new supreme leader, Mojtaba Khamenei, has yet to comment. Some Iranian observers objected to the timing of the announcement, which coincided with Trump’s birthday. Referring to the assassination of former Supreme Leader Ayatollah Ali Khamenei at the beginning of the US-Iran war, conservative journalist Parisa Nasr wrote on X: “Was giving a birthday gift to the killer of the martyred Leader also one of the unwritten conditions of the deal?”

Iranian President Masoud Pezeshkian said Iran’s Supreme National Security Council had approved the deal so that “America’s genuine commitment to respecting the rights of the Iranian nation could be tested in practice.”

Speaking at the G7 summit in France on Tuesday, Trump described the deal with Iran as “fair”, “good”, and under which Iran “can’t have a nuclear weapon” or “they get blown up.”

Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, who is also attending the summit, said the Iran-US agreement will result in positive outcomes for the region.

“This is a very important deal, there’s still a lot of work to be done, but with this momentum – if we continue like that, Mr President – I think we can achieve and do great things in the region,” Sheikh Tamim said.

US Democratic lawmakers welcomed a deal to halt the war with Iran but stressed that its terms must be made public. Senator Gregory Meeks said “any final agreement must be durable, enforceable, transparent” and more than “vague announcements or political spin”.

US Republican Senator Lindsey Graham on Sunday said he was “pleased” about the deal but also “somewhat concerned that Iran’s view of the agreement seems different than what the American negotiating team is claiming”.

Seloom, at the Middle East Council on Global Affairs, said the different narratives underlined that the two sides were “not really talking to each other”. “They’re talking past each other, to domestic audiences,” he said. “Each side has to sell this as a victory it cannot sell honestly.”

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Judge extends block on Trump administration ‘anti-weaponization’ fund

A judge on Friday permanently blocked President Donald Trump’s “anti-weaponization” fund because, despite administration officials’ statements that the fund will not be enacted, she does not believe them. Photo by Samuel Corum/UPI | License Photo

June 12 (UPI) — A federal judge on Friday extended an order to indefinitely block President Donald Trump‘s $1.776 billion “anti-weaponization” fund because she does not trust the administration’s word that it will not attempt to enact it.

The fund was announced last month and meant to compensate people the Trump administration alleged were targeted by the Biden administration, including people who were convicted for their actions during the Jan. 6, 2021, riots at the Capitol Building in Washington, D.C.

Judge Leonie Brinkema of the Eastern District of Virginia in her ruling blocked Acting Attorney General Todd Blanche, Associate Attorney General Stanley Woodward, Jr., and Treasury Secretary Scott Bessent from taking “any action to create or operate” the fund and that they not proceed with the concept “in any manner, or under any name.”

Brinkema’s ruling builds atop one from Washington, D.C., Judge Richard Leon that they do not believe the administration will not attempt to distribute money in the scheme.

Both judges indicated that they do not believe that the Department of Justice will back off from the plan because no officials from the agency have said they would do so while sworn in and under penalty of perjury.

“When the President of the United States says” that he wants something, referring to Trump, Brinkema said “that’s a pretty good indicator there will be an incentive and motive to make it happen,” CNN reported.

Even with the fund having been on hold for the last week, at least one person already has attempted to file a claim, to which the federal court responded that it is “not accepting applications”

President Donald Trump speaks to reporters about restoring commercial fishing access to areas of the Pacific during a signing ceremony in the Oval Office of the White House on Thursday. Photo by Jim Lo Scalzo/UPI | License Photo

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US judge extends block on Trump’s $1.8bn ‘anti-weaponisation’ fund | Courts News

Justice Department had walked back controversial plan after meeting backlash from lawmakers and lawsuits.

A federal judge in the United States has indefinitely blocked the Trump administration from moving forward with plans for a $1.8bn “anti-weaponisation” fund, meant to offer payments to those who experienced alleged “lawfare” and “weaponisation” of the government.

The ruling on Friday represents another setback for the scheme, which has faced heavy resistance from lawmakers and has been walked back by the Department of Justice previously.

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Judge Leonie Brinkema of the US District Court for the Eastern District of Virginia had issued a temporary halt to the fund last week and issued a preliminary injunction as it was set to expire on Friday.

The fund was the product of a settlement between Trump and the Justice Department of a $10bn lawsuit the president had brought against the Internal Revenue Service (IRS).

The Justice Department set up a $1.776bn fund that would have been helmed by a five-member commission to distribute funds to those they deemed victims of “weaponisation”, a term that Trump has used to describe investigations and criminal cases into himself and his allies.

Attorney General Todd Blanche walked back the plans earlier this month amid growing criticism, and government attorneys have argued that lawsuits challenging the scheme are now irrelevant.

Even before the administration announced it was dropping the fund, the Justice Department did not form the five-member commission to decide on payout criteria, so no money was paid out or claims accepted.

Many of the Republican president’s allies are opposed to compensating rioters who stormed the US Capitol on January 6, 2021. In May, however, Blanche would not rule out the possibility that Capitol rioters who engaged in violence could be eligible to apply for payments from the fund.

Trump issued mass pardons to Capitol rioters on his first day back in the White House last year. More than 1,500 people were charged in the January 6 attack before Trump erased every case with his sweeping act of clemency.

Plaintiffs who sued to block the plan argued that the scheme diverted taxpayer funds into what was essentially a slush fund and have expressed doubt about Blanche’s assurances that the fund will not move forward.

While the administration has moved away from the scheme, Trump himself has not endorsed its cancellation and has continued to discuss it positively in comments to the press.

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Judge extends block on Trump’s $1.8 billion ‘Anti-Weaponization Fund’

A federal judge agreed on Friday to extend a court-ordered block on the Trump administration’s creation and operation of a $1.8 billion settlement fund for compensating people who claim to be victims of a weaponized government.

Earlier this month, acting Atty. Gen. Todd Blanche told Congress that the government is scrapping its plans for the fund in the face of a fierce bipartisan backlash. Government attorneys have argued that lawsuits challenging the fund are now moot, but plaintiffs’ attorneys aren’t satisfied by Blanche’s assurances that the fund won’t move forward.

Neither was U.S. District Judge Leonie Brinkema, who ruled that the “Anti-Weaponization Fund” will remain blocked until further notice from the court.

“The (government’s) mootness argument, in my view, doesn’t go anywhere,” the judge said.

President Trump, meanwhile, has not publicly and unequivocally endorsed its cancellation. He has continued to express support for the fund in remarks to reporters.

Brinkema gave the parties a week to negotiate an agreement for Blanche to submit a sworn declaration that the administration won’t revive the fund.

Brinkema previously agreed to temporarily block the administration from proceeding with the fund for at least two weeks. Her May 29 order was due to expire on Friday.

Trump’s Republican administration created the fund to resolve his lawsuit against the Internal Revenue Service over the leak of his tax returns.

Plaintiffs who sued to block fund payouts argue that the government can’t legally divert taxpayer money into what they argue is a slush fund for compensating Trump’s allies.

In a separate case on Wednesday, a different judge in Washington, D.C., rejected a government watchdog’s parallel request for a court order temporarily blocking the Trump administration from forging ahead with the fund. U.S. District Judge Richard Leon said he accepts Blanche’s representation that the fund is now moot.

Leon had asked Justice Department attorney Andrew Block why Blanche doesn’t formally rescind his May 18 order establishing the fund. Block said he didn’t know. He still didn’t have an answer to that question when Brinkema posed it two days later.

“It’s a huge gap in the record that we don’t have an answer to that question,” the judge said.

In the Virginia case, attorneys from the legal advocacy group Democracy Forward asked for an order to temporarily suspend the fund’s implementation and stop the Trump administration from disbursing any payouts from it.

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

Even before the administration said it was dropping the fund, the Justice Department did not form the five-member commission that would decide on payout criteria, so no money was paid out nor claims accepted.

Many of the Republican president’s allies are opposed to compensating rioters who stormed the U.S. Capitol on Jan. 6, 2021. In May, however, Blanche wouldn’t rule out the possibility that Capitol rioters who engaged could be eligible to apply for payments from the fund.

Trump issued mass pardons to Capitol rioters on his first day back in the White House last year. More than 1,500 people were charged in the Jan. 6 attack before Trump erased every case with his sweeping act of clemency.

Brinkema was nominated to the bench by President Clinton, a Democrat.

Kunzelman writes for the Associated Press.

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Trump signs $70B bill to fund Homeland Security Dept. through 2028

June 10 (UPI) — President Donald Trump signed a bill to fund the Department of Homeland Security’s immigration enforcement agencies through 2028 after months of battles to prevent it from happening.

“This morning I’m thrilled to sign the Secure America Act to immediately and fully fund the Department of Homeland Security through the end of my term, so we won’t have to be talking about it anymore,” the president said in the Oval Office.

The Senate passed the $70 billion funding package on Friday, and the House approved it on Tuesday.

Democrats fought the funding for months, refusing to agree to the bill unless there were reforms to the organization after two American citizens — Renee Good and Alex Pretti — were killed by federal agents in Minneapolis earlier this year. But the measure was passed via reconciliation, which only requires a majority vote instead of 60 votes needed to overcome a filibuster.

“We’ll give the heroes of ICE and Border Patrol — and that’s what they are, they’re heroes, what they have to go through to keep us safe — the support and resources they need to defend our borders, protect our homeland and to keep America safe,” the president added He also gave House Speaker Mike Johnson, R-La., credit for passing the bill with a slim majority in the House.

“Despite Democrat efforts to shut down ICE and Border Patrol, Republicans have now fully funded these agencies through President Trump’s entire second term to the tune of nearly $70 billion,” Sen. Lindsey Graham, R-S.C., in a statement. “Thanks to President Trump, our border has gone from its weakest point to its most secure point in less than two years.”

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House is set to fund Trump’s immigration actions for the rest of his time in the White House

House Republicans will look to get nearly $70 billion for immigration enforcement over the finish line Tuesday, enough to fund a pair of Homeland Security agencies through the next three years and the rest of President Donald Trump’s time in office.

Speaker Mike Johnson will need near perfect attendance and unity on his side to complete weeks of action on the bill. The legislation got sidetracked when Republicans sought to include $1 billion for enhanced security on the White House grounds, including for Trump’s new ballroom, and the Trump administration tried to create a nearly $1.8 billion fund to compensate allies of the president who claim they have been unjustly investigated and prosecuted. Those proposals proved politically toxic and were scrapped.

Now, the bill is focused entirely on immigration enforcement, a topic that Republicans have treated as a defining issue between the two major political parties and one they hope will carry them to victory in this year’s midterm elections. The bill provides $38 billion for Immigration and Customs Enforcement, $26 billion for the Border Patrol and another $5 billion to cover unforeseen costs, fueling Trump’s deportation agenda.

“It’s long overdue,” said Johnson, R-La., of the bill. “We have to fund border security and immigration enforcement, and it’s sad that Republicans have to do it on our own.”

Funding accelerates Trump’s deportation agenda

The funding comes on top of the nearly $140 billion that the Republican-controlled Congress gave ICE and Customs and Border Protection last year as part of Trump’s tax and spending cuts bill.

Democrats objected to giving the agencies more money without significant changes in the way they operate after the deaths of Alex Pretti and Renee Good in Minneapolis. For example, Democrats insisted that agents be required to display their ID badges during enforcement operations and that they get a judicial warrant before entering private property. Instead, the funding will come with virtually no strings attached.

House Democratic Leader Hakeem Jeffries vowed his party would oppose the package.

“We believe that taxpayer dollars should be used to make life more affordable for the American people – not give ICE another $70 billion blank check so that they can unleash brutality on American citizens and violently target law-abiding immigrant communities,” said Jeffries of New York.

Homeland Security faced longest shutdown in history

The package is the result of a monthslong standoff in Congress after Democrats refused to fund the Department of Homeland Security in the wake of the immigration enforcement actions in Minneapolis and other American cities, leading to the longest shutdown in agency history.

Negotiations had been underway with the White House to alter ICE operations as Democrats were demanding. When those negotiations failed, Republicans turned to a complicated procedural maneuver to get around the filibuster and pass the immigration funding with no Democratic votes.

If approved, the package would next go to Trump for his signature, all but assuring an essentially uninterrupted flow of funds for his immigration enforcement and deportation agenda into 2029.

The Senate completed its work on the legislation last week during an all-night session that extended into the early morning hours Friday. The final 52-47 vote on the bill was nearly party line, with Sen. Lisa Murkowski of Alaska the only Republican to oppose it.

Money comes at pivotal time for immigration agenda

The money will come at a pivotal time for the Department of Homeland Security, which is under new leadership after Trump replaced Kristi Noem with new Secretary Markwayne Mullin in March.

While Mullin has vowed to keep the department out of the headlines, the administration is under pressure from anti-immigration advocates to deliver on Trump’s campaign promise of the largest deportation operation in American history.

So far, the administration has not hit its goal of 1 million deportations a year, but Trump’s border czar, Tom Homan, has promised more to come, including hinting at immigration enforcement actions in New York, the nation’s biggest city, which is heavily Democratic.

At the same time, the administration is making it more difficult for legal immigrants to remain in the U.S. by working to end Temporary Protective Status, changing the processes for obtaining green cards and leaving some Dreamers — the young people who were brought illegally to the U.S. as children — reporting delays in renewing their status, which allows them to stay and work.

Tight vote ahead

On the House side, Johnson has little margin for error. Republicans can afford to lose only a couple of votes if every lawmaker is present. GOP leadership opted to avoid any hiccups and sent lawmakers home last week rather than take up the bill early Friday once the Senate had completed its all-nighter.

The bill is just a slim package, without the hundreds of pages of details and directives that typically come from Congress when it provides funding for agencies.

Leading up to the vote, Democrats portrayed DHS as an agency that has used its new resources to buy private jets for its leadership, warehouse immigrants in deplorable conditions and attack U.S. citizens.

“To give these rogue agencies another $70 billion now when they still have $100 billion in the bank from last year would implicate all of us in the escalating corruption and shameful actions of this department,” said Rep. Jamie Raskin of Maryland, the ranking Democratic member on the House Judiciary Committee.

Republicans countered that they were fulfilling their duty to safeguard the nation and support the men and women charged with enforcing the law.

“Democrats can say whatever they want, but what it’s about is public safety. What’s it about is keeping Americans safe,” said Rep. Michelle Fischbach, R-Minn.

Freking and Mascaro write for the Associated Press.

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Democrats force vote on Trump’s $1.8bn settlement fund in ‘vote-a-rama’ | Donald Trump News

Republicans in the United States Senate have renewed their push to pass a controversial $70bn immigration-enforcement funding bill, a top policy priority for President Donald Trump.

But the effort on Thursday faced a series of hurdles, with Democrats forcing votes on several amendments that highlighted controversies related to the Trump presidency.

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The rapid-fire votes on the amendments were dubbed a “vote-a-rama“, and they are slated to include issues ranging from Trump’s White House ballroom to his tariff policies and the US-Israel war on Iran.

“Amendment after amendment, vote after vote, Republicans are going to have to answer to the American people,” Senate Minority Leader Chuck Schumer said.

Early on, Republicans were forced to confront a topic that has dominated headlines in recent weeks: Trump’s proposed $1.776bn “anti-weaponisation” fund.

The fund has been controversial on both sides of the aisle, with critics calling it a slush fund for Trump’s allies.

Several Republicans indicated that the optics of such a fund could be politically catastrophic ahead of November’s midterm elections, and the Department of Justice has since backed away from the scheme.

But Trump himself has avoided saying whether the fund was dead, or just on hold.

It was created as part of a settlement following a lawsuit Trump filed against the Internal Revenue Service (IRS), a part of his government, and it was designed to award payouts to alleged victims of politically motivated prosecution.

Senate Democrats have repeatedly called for such a fund to be banned outright, rather than relying on the Trump administration’s commitment not to revive it.

Nevertheless, on Thursday, Senate Republicans rejected the Democrats’ measure to permanently block the fund.

Republican Tom Tillis introduced a second amendment, which would have also banned the settlement fund. Instead, the legislation would have redirected the allocated funds to a separate anti-fraud fund within the Justice Department. That, too, was rejected.

Thursday’s votes on the “anti-weaponisation” fund were just the start of several rounds of voting on issues uncomfortable to the Republican Party.

Schumer, the top Democrat, signalled that other amendments would tackle another part of the IRS settlement: the permanent immunity from tax audits that Trump had secured for himself and his family.

Trump’s controversial immigration enforcement campaign and other issues were also scheduled to be taken up in the day’s amendments.

Senate Majority Leader John Thune said he was not sure whether Republicans would defeat every measure, with some members of the party showing an increasing willingness to stand up to Trump.

“I can’t predict how it comes out,” he said.

Immigration funding bill

The situation on Thursday was the result of a standoff between Democrats and Republicans over the Trump administration’s approach to immigration enforcement.

Democrats had pledged not to approve further funding for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), following the killing of two US citizens during immigration operations in Minneapolis, Minnesota.

Republicans control 53 seats in the 100-seat chamber, short of the 60-vote threshold needed to overcome a filibuster.

They have instead been forced to pursue a lengthy procedural manoeuvre to bypass the filibuster, which has taken weeks.

The $70bn funding bill had been stalled by the Trump administration’s demand to include $1bn for security upgrades for Trump’s White House ballroom project.

The request came after the president had repeatedly said that no taxpayer dollars would go towards the project.

The security funding, which roiled several Republicans, was subsequently dropped before the voting started.

The Senate’s parliamentarian, an official who interprets the chamber’s rules, had previously ruled that adding ballroom funding to the $70bn bill would make it ineligible for the budget reconciliation process, which allows the passage of fiscal-related bills with a simple majority.

If Senate Republicans remain unified, they are expected to pass the funding bill late Thursday night or early Friday.

The Republican-controlled House of Representatives is expected to take up the bill shortly after.

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Senate rejects an initial attempt to ban Trump’s $1.8-billion ‘anti-weaponization’ fund

Initial efforts in the Senate failed Thursday to block the $1.8-billion fund that the Trump administration has sought to establish to pay people who claim the government wronged them, though further attempts were likely to come Thursday afternoon.

Republicans narrowly voted down a Democratic amendment to ban the payout fund and then Democrats killed a Republican amendment, which would have prohibited the use of federal money for the fund but would have sent $1.7 billion to the Justice Department’s fraud division.

It was the second effort in Congress to rebuke President Trump in two days, following the House vote Wednesday to rein in Trump’s war powers in Iran.

The dueling amendments were proposed by Senate Minority Leader Chuck Schumer (D-N.Y.) and Sen. Thom Tillis (R-N.C.). They were attached to the reconciliation bill that would fund Immigration and Customs Enforcement and the Border Patrol, a high priority for Republicans.

The votes came as the Senate began a “vote-a-rama,” during which lawmakers were expected to propose a stream of amendments to the immigration bill on various topics.

The Trump administration’s plan for the payment fund — widely seen as a way for Trump to compensate his political allies, including those who participated in the Jan. 6, 2021, attack on the Capitol — set off particular ire from some GOP lawmakers.

The plan has fueled growing unrest within parts of Trump’s party over his governance, compounded by the president’s endorsement of primary challengers to Sens. John Cornyn (R-Texas) and Bill Cassidy (R-La.), as well as Rep. Thomas Massie (R-Ky.), which angered some Republican senators.

Cassidy, who lost his primary and has since voiced strong opposition to Trump’s $1.8-billion fund, became a key player in the Thursday votes, voting down Schumer’s amendment but supporting Tillis’.

On Wednesday, Cassidy joined with Sen. Cory Booker (D-N.J.) to argue in a court filing that the $1.8-billion fund circumvents Congress’ authority and violates the Constitution’s spending and appropriations clauses.

“It is an unconstitutional attempt to spend the People’s money without Congressional approval,” Cassidy and Booker wrote in an amicus brief filed in the federal court case challenging the fund.

The fund was created by the Justice Department to settle a lawsuit brought by Trump against the Internal Revenue Service over the leak of his tax returns. Trump and his sons agreed to drop their personal lawsuit against the government in exchange for the creation of the $1.776-billion fund. Critics immediately questioned the plan, and it drew a rare backlash from Republicans.

In late May, GOP senators derailed plans to vote on the immigration bill over their displeasure with the payout fund and with Trump’s desire to use taxpayer funds for his planned White House ballroom. Senate Republicans removed the ballroom funding from the immigration package Wednesday, another setback for Trump.

The Trump administration sought to back away from its plans for the fund this week, following bipartisan outcry and a federal court ruling that temporarily blocked any payouts from the fund. Acting Atty. Gen. Todd Blanche said Tuesday the administration would end its plans to move ahead with the concept.

But Trump on Wednesday told reporters he didn’t know whether the fund was dead, calling it “a beautiful thing.”

After Schumer proposed the first amendment to ban the fund Thursday morning, the Senate came to a standstill as three key Republican senators deliberated. Schumer framed his effort to ban the fund Thursday as a way to force a referendum on Trump’s plan.

The amendment “offers Republicans a choice: Do you support Donald Trump’s $2 billion taxpayer-funded slush fund, or do you want to protect the American people and their paychecks?” Schumer said on the Senate floor before the vote.

Sen. Bernie Moreno (R-Ohio) urged Republicans to reject the amendment, saying Democrats were planning to “play so many games” on Thursday during the marathon session.

“We are going to fund immigration enforcement and border patrol, and I urge my Republican colleagues to stay united on that singular mission,” Moreno said.

The amendment failed after Cassidy voted against it. Republican Sens. Susan Collins of Maine, Jon Husted of Ohio and Dan Sullivan of Alaska voted in favor.

Schumer’s amendment was uniformly supported by Democrats, including California Sens. Adam Schiff and Alex Padilla.

Tillis, who also voted against Schumer’s amendment, immediately proposed his amendment. Sen. Jeff Merkley (D-Oregon) urged Democrats to oppose it, saying that the proposal would create “a new slush fund” by giving the money to the Justice Department.

“We heard over the last 48 hours that the acting attorney general said that this fund’s not moving forward. All this amendment does is codify what I believe the policy of the DOJ is,” Tillis said on the floor before voting began on his amendment. “This [fund] is unpopular, this administration has said they’re not moving forward with it; this is an opportunity for us to put it to bed.”

Responded Merkley: “Taking one slush fund and eliminating it and then creating a new slush fund still under control of the attorney general is not the way to go. The way to go is to get rid of these slush funds altogether.”

Trump has faced a recent string of failures, including the House vote Wednesday, a court ruling to remove his name from the Kennedy Center and a record-low approval rating among Americans as concern rises about economic issues, gas prices and Trump’s war with Iran.

On Wednesday, Trump lashed out against the four Republicans who backed the House war powers resolution, calling it “an unpatriotic thing” to do and calling the vote “meaningless.”

“They’re GRANDSTANDERS! They should be ashamed of themselves. MAGA!!! President DJT,” Trump wrote.

Times staff writer Ana Ceballos, in Washington, contributed to this report.

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Senate begins voting on bill to fund ICE, Border Patrol as Democrats try to derail it

The Senate is beginning a long series of votes Thursday on legislation to fund President Trump’s immigration enforcement agencies, moving toward passage of a three-year fix as Democrats have blocked the money for months in protest.

The roughly $70 billion bill to fund U.S. Immigration and Customs Enforcement and the Border Patrol would end the blockade by Democrats who demanded policy changes after the fatal shootings of two protesters by federal agents in January. The bill would fund the agencies for three years, through the end of Trump’s term.

First, though, Republicans must beat back a potential gauntlet of amendments that Democrats plan to offer, including to try and permanently ban Trump’s $1.776 billion settlement fund for allies who he believes have been politically persecuted. Democrats have said their first amendment Thursday morning will be to eliminate the fund and send the immigration spending bill back to committee.

Senate Republicans are using a complicated procedural maneuver to get around the filibuster and pass the budget legislation with no Democratic votes. But it has taken weeks to get the bill to the Senate floor as Republicans navigated various obstacles to passage created by Trump and the White House — including a $1 billion proposal for White House security that they eventually scrapped and fierce bipartisan backlash to the settlement fund.

“The thing we’re trying to do here is to keep the focus on funding for ICE and CBP,” Senate Majority Leader John Thune said Wednesday evening, after the Senate voted to start debating the legislation. “This was narrow and targeted from the very beginning and clean, and we’re trying to maintain it that way.”

But it’s unclear if Republicans will have enough votes to fend off the Democratic amendments. Acting Attorney General Todd Blanche said this week that the fund would not move forward, and many GOP senators said Wednesday that they were satisfied with his remarks.

Yet Trump, who has been at odds with Senate Republicans in recent weeks, raised new doubts about the settlement’s future on Wednesday afternoon when he told reporters that the settlement is “very important” and said “I don’t know” whether it is dead or on hold.

“I’d have to ask the lawyers,” he said.

Democrats, Republicans plan to force votes on settlement

To pass legislation through the budget process called reconciliation, the Senate must first hold a long series of votes. Democrats are using that process to try and ban the settlement by law — and also kill the immigration spending bill.

After Trump’s comments about the fund, Schumer posted on X that “this is EXACTLY why” Democrats would be forcing votes to ban it.

Some Republicans also planned to try and put Blanche’s promise in writing. Sen. Thom Tillis, R-N.C., has said he will offer an amendment to block any attempt at resurrecting the fund.

“We’ve got a sufficient number of Republicans who have been very clear they’ve got concerns there,” said Tillis.

ICE and Border Patrol money has been long fight

Democrats say any funding bill for the Homeland Security Department should place restraints on federal immigration authorities, including better identification for federal officers and more use of judicial warrants, among other asks.

After federal agents shot Renee Good and Alex Pretti in Minneapolis, Trump agreed to a Democratic request that the Homeland Security bill be separated from a larger spending measure that became law. But bipartisan negotiations went nowhere, and the DHS funding lapsed in mid-February with no agreement on changes to the Trump administration’s immigration enforcement tactics.

Congress eventually funded the rest of the Homeland Security Department at the end of April with Democratic support. But ICE and Border Patrol remained without regular funding, and Republicans launched a new effort to pass three years of funding for those agencies with no Democratic votes.

Security money for Trump’s ballroom dropped

Work on the legislation was also delayed by Republican opposition to $1 billion in security funding for the White House, including for Trump’s new ballroom, that was added to the original bill.

Democrats and some Republicans questioned using taxpayer money for the massive project, and Republicans did not include it in the final bill when it was released on Wednesday.

Thune said he was working with his GOP conference to try and fight off any amendments and ensure he has enough votes for a simple majority to pass the bill in the 53-47 Senate.

“Keep in mind, we’ve got to keep them all together, make sure we’ve got 50 votes for it,” he said.

Republican House leaders said Wednesday they would like to clear the legislation before the end of the week, if the Senate can finish it. House Majority Leader Steve Scalise, R-La., said that House leaders were having internal conversations about the schedule.

“We just need to make sure everybody’s there,” Scalise said.

Jalonick and Cappelletti write for the Associated Press.

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Blanche says Trump administration is scrapping $1.8B fund meant to compensate president’s allies

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.

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Google parent Alphabet to sell $80bn in stock to fund AI plans | Technology News

US tech giant says fundraising drive includes deal to sell $10 bn of stock to Berkshire Hathaway.

Alphabet, Google’s parent company, has announced plans to sell $80bn worth of shares to fund its rollout of artificial intelligence.

Alphabet said on Monday that the equity offerings would finance the rollout of AI infrastructure needed to meet “unprecedented customer demand”.

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The US tech giant said the fundraising drive included a deal to sell $10bn of stock to Berkshire Hathaway, the conglomerate led for six decades by legendary investor Warren Buffett.

The remaining $70bn will come from $30bn in underwritten offerings – a type of share issuance where a financial institution buys stock to sell on to investors – and $40bn in staggered sales on the open market.

“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in a statement.

“By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”

Shares of Alphabet, which has a market capitalisation of more than $4.5 trillion, were down about 1 percent in after-hours trading following the announcement.

Like other Silicon Valley giants, Alphabet, whose AI business spans the Gemini family of assistants, data centres and cloud services, has committed eye-watering sums to AI-related infrastructure.

The company said in its most recent earnings call that it expected its capital expenditures to reach $180-190bn this year, and rise “significantly” in 2027.

US tech behemoths, such as Alphabet, Microsoft, Amazon and Meta, are expected to spend some $800bn on AI-related capital investment in 2026, according to an analysis by Goldman Sachs.

Troy Hooper, co-head of equity capital markets for the Americas at the financial intelligence provider Mergermarket, said Alphabet’s funding plans underscored the intensity of the race to lead the AI buildout.

“For hyperscalers, compute capacity is a direct driver of future revenue,” Hooper told Al Jazeera.

“By leaning into equity, Alphabet is bringing in permanent capital rather than burdening a balance sheet already absorbing record capex,” Hooper said, using the shorthand for capital expenditure.

Hooper said US tech giants have come to view underinvestment in AI as an “existential risk” and over-investment as “merely expensive”.

“The logic is simple: under-investing is an existential risk; over-investing is merely expensive. Microsoft, Amazon, and Meta are following the same calculus,” Hooper said.

“Ownership at scale lowers the marginal cost of training advanced models, building a moat smaller competitors will struggle to match. The message is clear: The winners of the AI era will be decided not just by algorithms, but by who owns the largest and most efficient compute platforms.”

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Sources: Trump backing off plans for anti-weaponization fund

June 1 (UPI) — President Donald Trump is backing off plans for a $1.8 billion “anti-weaponization” fund after bipartisan criticism, sources said Monday.

Politico, The New York Times and CNN reported Monday evening that sources familiar with the matter said the Trump administration has told Republican congressional leaders that plans for the fund would be at least paused or dropped. Trump has not yet committed publicly to this change.

Earlier Monday, the Justice Department issued a public statement that it would abide by a federal court ruling putting the fund on hold, although it “disagrees strongly” with the ruling. It was unclear whether this was the halt to the fund communicated later or if a more permanent halt is planned.

The controversy over the fund has caused issues for Republican agendas on immigration enforcement, with Republicans splitting on the issue and Democrats vowing to force votes on amendments related to the fund.

Senate Minority Leader Chuck Schumer said earlier Monday that Democrats will have amendments ready to stop the fund, which has been criticized as a way to pay Trump allies, including those prosecuted for their actions in the Jan. 6 riot.

“This week, Senate Democrats will launch a coordinated effort to kill the slush fund before one cent goes out the door,” Schumer wrote in a letter to Senate Democrats. “And no matter what Republicans do, we will force them to vote. If Republicans return to reconciliation, we will be ready with amendments to shut the fund down. If they try to bury the issue, we will force them to the Senate floor. If they try to sneak behind appropriations, we will fight them there too.”

Some Republicans have proposed adding restrictions to the fund. As it is written, there are no clear oversight mechanisms and the Justice Department has not provided details on the process of reviewing claims and making payments.

The Senate is facing a $72 billion budget reconciliation package that would fund immigration enforcement efforts through 2029. The Senate recessed for Memorial Day without any action on the package taking place.

Secretary of State Marco Rubio and President Donald Trump participate in a Cabinet meeting in the Cabinet Room of the White House on Wednesday. Photo by Samuel Corum/UPI | License Photo

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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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Capitol rioters clamor for payouts from Trump’s new ‘anti-weaponization’ fund despite backlash

David Johnston was a licensed attorney when he illegally entered the U.S. Capitol with a mob of President Trump’s supporters on Jan. 6, 2021. More than five years later, the South Carolina man is offering to help fellow “J6ers” apply for payouts from the Trump administration’s nearly $1.8-billion fund for people claiming to be victims of a “weaponized” government.

He’ll do it for a 10% cut of any award, capped at $5,000 apiece.

“I think the narrative is changing” about how the history of that day is being told, Johnston said in a video he posted to social media. “I think good things are happening for us.”

Hundreds of Trump loyalists pleaded guilty to storming the Capitol, admitting under oath that they broke the law. Some were convicted of sedition, and many attacked police officers while trying to overturn Trump’s election loss. Now pardoned by Trump, many hope to capitalize on their crimes by tapping into the $1.776-billion settlement fund designed to compensate the president’s allies who claim they were politically prosecuted.

A bipartisan backlash to the fund and a legal roadblock have not dimmed the celebratory response from Jan. 6 rioters clamoring for a share of the taxpayer money. Some are staking claims even though the government has not established an application process and a judge has frozen the fund’s formation, at least temporarily.

Seeking payouts

The fund’s critics see it as another vehicle for Trump and his allies to whitewash the events of Jan. 6, retroactively justify the mob’s assault on a pillar of American democracy and reward some of Trump’s most loyal followers.

Jason Riddle, a military veteran from New Hampshire who was sentenced to 90 days behind bars after pleading guilty to riot charges, publicly rejected a pardon from Trump. Likewise, he said it would be “ridiculous” for him or any other Jan. 6 rioter to get government compensation.

“I’d love money, but I can’t accept that. That would bother me for the rest of my life,” he said. “We weren’t innocently persecuted just because of who we are or who we vote for. We were persecuted for committing criminal behavior in the Capitol of the United States.”

Plenty of other “J6ers” do not share Riddle’s reluctance.

A Florida man who posed for photos with then-House Speaker Nancy Pelosi’s stolen lectern argued on social media that he deserves to be compensated for the cost of his infamy. A rioter from New Jersey described by prosecutors as a Nazi sympathizer hailed the fund as “good news not just for J6ers but all victims of weaponization.” A Texas man who received a seven-year prison sentence for storming the Capitol with a metal tomahawk celebrated the fund as “payback” for “victims of Biden’s tyranny,” referring to President Biden.

Oregon resident Pamela Hemphill, sentenced to 60 days in jail for her conviction, rejected a pardon from Trump but has drafted a written claim for compensation from the fund. Unlike scores of rioters who claim to be victims of a government weaponized by Democrats, Hemphill blames Trump for her legal troubles. Her claims letter says she is seeking $5 million in compensation.

“I wouldn’t have been through all of this if Trump hadn’t lied about the election being stolen,” she said during a telephone interview. “It’s a direct result of his lies that I was even there that day.”

It is an open question whether anyone convicted of a Capitol riot-related crime could be eligible for payments from a fund created to resolve Trump’s lawsuit against the IRS over the leak of his tax returns.

Acting Atty. Gen. Todd Blanche has not ruled out that possibility. Blanche said there are no limits on who can apply, but he noted that the fund’s five commissioners — all yet to be named — will decide who deserves to be compensated and why, based on factors such as “what the person did, his sentence, how much time he was in jail.”

“That’s up to the commissioners,” Blanche told the Associated Press on Thursday when asked about his position on whether violent Jan. 6 defendants should be eligible for payments.

“You have to define something and then stick to it. That’s something I’ve been hesitant to try to do, because it’s very fact-intensive,” Blanche said. ”Me sitting here and talking in hypotheticals is something that I don’t think is fair to the process.”

It is unclear whether Congress would block payments to Jan. 6 defendants. Senate Republicans who are angry about the settlement have said they want to place parameters on the fund as part of a Department of Homeland Security spending bill. They abruptly left town this month after a tense meeting with Blanche and will return Monday with the situation unresolved.

A federal judge in Virginia has frozen the fund’s establishment and temporarily blocked any processing or paying of claims. The judge issued that ruling Friday in one of at least three lawsuits challenging the fund.

Brendan Ballou, a former prosecutor who tried several Jan. 6 cases before leaving the Department of Justice last year, sued on behalf of two police officers who helped defend the Capitol from the mob. Ballou views the fund’s creation as part of a broader Trump campaign to undermine democratic institutions and rewrite the history of Jan. 6.

“And if the president is successful in that effort, if he’s able to get people to either forget or condone that day, he knows that he can get people to accept any attack on democracy,” Ballou said.

‘I want vengeance’

Nearly 1,600 people were charged with Capitol riot-related federal crimes. More than 1,200 were convicted and sentenced before Trump issued mass pardons and ordered the dismissal of all pending Jan. 6 cases upon his return to the White House last year. Trump also freed far-right extremist group members who were imprisoned for plotting to attack the Capitol to keep Trump in office after he lost the 2020 presidential election to Biden.

The self-described “J6 community” isn’t the only pro-Trump constituency angling for cuts of the money after being charged with or convicted of crimes.

Meshawn Maddock, who was charged as being a fake elector for Trump in Michigan before a judge dismissed the case last year, said she and her husband, state Rep. Matt Maddock, “absolutely” plan on making a claim. She believes the fund’s use of taxpayer money is justified because it “paid for the prosecution and investigation of the years that I was being hunted down.”

“I want vengeance and I want retribution,” Maddock said.

Trump’s campaign to recast the violence of Jan. 6 as a peaceful protest seems to have emboldened many convicted rioters.

Johnston’s eagerness to help other Capitol rioters with claims contrasts with his remorse he expressed at his sentencing in 2022. He apologized for his “terrible lapse in judgment” before a judge sentenced him to three weeks in jail and three months of home detention. He pleaded guilty to a misdemeanor trespassing charge.

“It was a dumb, dumb thing to do,” Johnston told the judge. “I am 100% responsible for what I did that day.”

Kunzelman writes for the Associated Press. AP writers Jamie Stengle, Mary Claire Jalonick and Joey Cappelletti contributed to this report.

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Judge temporarily blocks payouts from Trump’s $1.8B ‘anti-weaponization’ settlement fund

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.

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Newsom vows to levy 100% tax on California recipients of Trump’s $1.8-billion ‘slush fund’

Gov. Gavin Newsom has threatened to tax 100% of the money Californians receive from President Trump’s “anti-weaponization” fund for his political allies.

Trump’s Justice Department had announced last week that it would establish a $1.776-billion fund to compensate allies of the president who claim they have “suffered weaponization and lawfare” under the Biden administration’s Justice Department.

“Anyone from California that receives any of those funds, we want to tax 100% of those proceeds,” the governor told reporters Thursday.

“That’s an action the state of California can take …[and] it’s an action we look forward to taking.”

Just how Newsom would do so remains unclear. He indicated that he would need action from the Democratic-led California Legislature to impose the new tax. If adopted, the measure would likely face legal challenge.

The fund has prompted outrage from Democrats and some Republicans — including Sen. Mitch McConnell (R-Ky.), who said in a statement that the “slush fund,” which would “pay people who assault cops,” was “utterly stupid.”

Newsom’s remarks about Trump’s settlement fund came on Thursday as he signed a bill designed to prevent election interference ahead of Tuesday’s primary.

The bill, Senate Bill 73, restricts law enforcement agencies and officers — including those from federal agencies — from interfering with state and local election officials, such as confiscating ballots, voter rolls or voting machines without a warrant.

The governor said the bill is meant to address “legitimate anxiety” over threats to election integrity after Riverside County Sheriff Chad Bianco’s decision to seize ballots from the county’s voter registrar as part of a fraud probe. Bianco, a long-time Trump supporter, is one of the top Republicans running to succeed Newsom after the end of his second and final term as governor.

Newsom also pointed to ICE and Border Patrol’s decision last November to stage an event near Dodger Stadium, calling it a “show of force designed to intimidate free expression and free speech.”

“That’s why we have to step up and we have to draw the line,” Newsom said. “We have to clarify the rules of engagement… there are fines associated with this, criminal fines and jail time of three years, so that’s a warning [to] the folks out there that think they can do the bidding of the Trump administration.”

Newsom said he expects Trump to interfere with the upcoming election — noting that the president has falsely claimed that he “won” California in the last election.

“Every single thing that Donald Trump is saying only suggests that he will do more, not less, to intimidate and to impact the outcome of this election,” Newsom said. “I absolutely expect the worst again, because we’ve been on the receiving end of it.”

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