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Trump says anti-weaponization fund in IRS settlement is ‘dead’ even as he defends it

President Trump said Friday that his $1.8 billion anti-weaponization fund is “dead” while also continuing to defend it, further complicating his administration’s negotiations with two Republican senators who are blocking his attorney general nominee in protest.

Trump told reporters at Camp David on Friday morning that administration officials had “agreed not to have a fund” that compensates his political allies, yet made clear that he disagrees with that decision.

The comments came hours after an early morning social media post in which Trump said people who had been prosecuted by the Justice Department — many of them for their involvement in the violent Jan. 6, 2001, attack on the Capitol — “are suffering still, many ruined, and I felt that they should be given compensation for what has been done to them.”

Trump’s reluctant declaration that the fund won’t be created came as Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina, both members of the Senate Judiciary Committee, say they won’t support Todd Blanche’s nomination for attorney general until they see that promise in writing. They have been working for weeks with the White House and Blanche, who is now the acting attorney general, to produce a document to that effect, but both senators have said they aren’t satisfied so far.

“The President made it clear today that the so-called Anti Weaponization Fund is still alive, which is exactly why we are attempting to formally end it,” Tillis said after Trump’s initial social media post.

Trump said in his post that Blanche should be immediately confirmed and is a “pawn in this whole thing.”

Cornyn, Tillis want promises in writing

Blanche said at a hearing two months ago that the anti-weaponization fund would not move forward after Republican senators revolted and held up an immigration funding bill.

But Tillis, who is retiring when his term ends in January, and Cornyn, who lost reelection this year after Trump endorsed his primary opponent, said they want to ensure that the White House doesn’t reverse course, especially as Trump continues to argue that a fund is needed.

The Justice Department has provided the senators with language that says Blanche’s May 18 order establishing the “Anti-Weaponization Fund” is “rescinded and shall have no force or effect,” according to a document reviewed by The Associated Press.

Cornyn and Tillis have said they also want some clarifications on a separate piece of the settlement that would grant Trump and members of his family immunity from tax audits. Cornyn said this week that it was his understanding that the audits could extend to more than 100 different Trump organization subsidiaries into the future.

“Todd Blanche said it was limited to the parties to the litigation — and it was retrospective, not prospective,” Cornyn said. “And all we’re doing is asking them to put that in writing.”

Blanche nomination is delayed in the Senate

The Judiciary Committee postponed a vote on Blanche’s nomination that had been scheduled for Thursday morning after Tillis and Cornyn said they needed more from the administration before they could provide the necessary votes.

After the meeting was delayed, Trump said in a social media post that he might pull Blanche’s nomination and resubmit it after Cornyn and Tillis leave office next year. But the two sides continued to negotiate through Thursday afternoon, when Blanche, Cornyn and Tillis met on Capitol Hill.

On Friday, a person familiar with the negotiations said talks had been positive, but the senators were still awaiting a new offer from the Justice Department. The person requested anonymity to discuss the private negotiations.

The two senators have repeatedly said the Justice Department seemed interested in reaching an agreement, but the White House wouldn’t budge even to aid the confirmation of Trump’s loyal former personal attorney, who has aggressively pursued the administration’s priorities as acting attorney general.

“I think as far as Blanche and the Department of Justice, we were pretty much on the same page,” Cornyn said Thursday. “But then when the president got wind of it, he wasn’t willing to go along with it.”

Tillis said Blanche “has been forthright, thoughtful and patient” but attributed the holdup to an “incompetent personal advisor” to the president, even as Trump himself continued to advocate for the fund.

Behind the scenes, Trump legal adviser Boris Epshteyn is being blamed as an obstacle to an agreement that would let Blanche move forward, according to three people who have direct knowledge of the discussions and requested anonymity to discuss them.

Saying the AP’s “sources are wrong,” White House communications director Steven Cheung said “anyone trying to assign blame to the President or his team has no earthly idea of what is going on and clearly is trying to deflect from the issue at hand — Todd Blanche will be an exceptional Attorney General and he should be confirmed immediately.”

Also on Friday, Trump’s attorneys notified a court it would appeal a judge’s scathing ruling that characterized the settlement of the president’s lawsuit against the IRS as an improper exercise in self-dealing. The judge in her order earlier this month referred one of Trump’s attorneys for potential disciplinary action and criticized Blanche’s involvement in the settlement, given his prior representation of Trump.

Blanche has said he disagrees “with the judge’s insinuations” about him.

Settlement fund could have benefited Jan. 6 rioters

Even as they are usually deferential to Trump, a number of Republican senators have expressed strong objections to the settlement.

“The criminals who assaulted police officers and defiled our nation’s Capitol are not ‘great American patriots’ who are ‘victims of government abuse,’” Tillis said, echoing Trump’s comments about the rioters who could potentially have received payouts. On his first day back in office, Trump pardoned more than 1,500 people who had been charged in the attack.

Republican Sen. John Kennedy of Louisiana said Thursday that the majority of Senate Republicans aren’t comfortable with the settlement fund.

“Blanche said it’s dead, and he testified that it’s not coming back,” Kennedy said. “But for whatever reason, somebody didn’t want to put it in writing.”

Jalonick, Kim and Richer write for the Associated Press. AP writers Eric Tucker and Lisa Mascaro contributed to this report.

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Trump might pause Blanche nomination as GOP senators object to IRS settlement

The high-stakes nomination of Todd Blanche to be attorney general has turned into a clash of wills between President Trump and two Senate Republicans whose political careers he claims credit for ending.

After a vote on Blanche’s nomination was delayed over concerns raised by two lame-duck Republican senators, the president said Thursday he might put Blanche’s nomination on hold rather than meet their demands.

Sen. John Cornyn (R-Texas) and Sen. Thom Tillis (R-NC) have indicated that they will vote to support advancing Blanche’s nomination only if the Justice Department provides written assurance that it has completely abandoned a controversial $1.8-billion “anti-weaponization” fund created as part of a settlement between Trump and the Internal Revenue Service and will limit the scope of tax audit immunity granted to Trump, his sons and a business.

Those provisions were part of a proposed settlement of a $10-billion lawsuit Trump filed against the IRS, which is part of his administration.

“The opposition to such a high-ranking executive branch nomination from within Republican ranks is quite unprecedented,” said Phil Brest, who was a top Democratic staffer for the Senate Judiciary Committee during the nominations of Jeff Sessions, Bill Barr and Merrick Garland, who each served as attorney general.

The Senate careers of both Cornyn and TIllis are coming to an end this year after Trump declined to endorse them.

“John Cornyn, of Texas, and Thom Tillis, of North Carolina, both of whom I refused to Endorse, and whose political careers have been ended by my action, are refusing to vote for this Great Nominee,” Trump wrote on Truth Social, his social media platform. “I have no objection to temporarily withdrawing Todd’s name, if they do not do the right thing, and putting him back after Cornyn and Tillis are out of office.”

But that decision brings about its own political risk.

With the president’s approval rating sitting below 35% in recent polls, Democrats could shrink or even reverse the Republican Party’s current 53-seat Senate majority this November. Cornyn‘s and Tillis’ seats in Texas and North Carolina are both at risk of flipping to Democrats.

“So waiting until 2027 could be far harder than it is right now,” said Jessica Taylor, the Senate and governors editor at the nonpartisan Cook Political Report.

Blanche has been serving as acting attorney general since Atty. Gen Pam Bondi was fired in April. He was previously the deputy attorney general and has been associated with some of the most controversial policies associated with the Trump administration, including the IRS settlement, the handling of the Epstein files and prosecutions of Trump’s perceived enemies.

Blanche can continue in the acting role even if he is not confirmed, but the Trump administration would be blocked from appointing a new deputy attorney general unless he is confirmed.

Sen. Chuck Grassley (R-Iowa), chair of the Senate Judiciary Committee, which is vetting Blanche, told reporters Thursday that he is hoping to keep Blanche’s nomination on track.

“I’m going to work real hard the next few days to get this thing settled. That’s what we’re going to do. I’m not going to consider any other option, because there’s no reason to consider other options at this point,” Grassley said.

Because the Senate is scheduled to begin its five-week August recess at the end of next week, Blanche probably wouldn’t come before the full Senate for a vote until September at the earliest if the nomination advances out of the Judiciary Committee.

That would put the vote squarely in the middle of peak campaign season, which could present vulnerable Republicans such as Sen. Susan Collins of Maine and Sen. Dan Sullivan of Alaska with a difficult vote on a nominee who has been linked to many of the Trump administration’s most polarizing policies.

A vote against Blanche could incur the wrath of Trump, while a vote for him could turn off moderate voters.

“It’s a Catch-22 for a lot of these candidates. They still need Trump’s voters to come out, but they still need a swing vote as well,” Taylor said.

Blanche worked earlier in his career as a federal prosecutor in New York but was more recently Trump’s criminal defense attorney in the lead-up to his second term in the White House.

Blanche faced questions about his independence from his former client throughout his nomination hearing earlier this month. But his answer to one seemingly friendly question, about whether he and Trump are friends, might have inadvertently hurt his case.

“I’m his lawyer,” Blanche replied, before correcting himself. “Was his lawyer.”

The Judiciary Committee currently has 12 Republicans and 10 Democrats. With all 10 Democrats firmly in opposition to Blanche, a vote against moving forward by Cornyn or Tillis would probably put an end to the nomination.

This isn’t the first time Tillis has wielded his political leverage during a high-stakes nomination process.

He briefly blocked the nomination of Federal Reserve Chairman Kevin Warsh until the Justice Department dropped a lawsuit against outgoing Federal Reserve Chair Jerome Powell.

“Sen. Tillis has been unafraid to use his vote to extract concessions from the Trump administration,” said Brest, who is now president of the American Constitution Society, a progressive legal nonprofit. “There’s a playbook for this and he has been effective with that playbook.”

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Judge blasts Trump’s IRS lawsuit as filed for ‘improper purpose,’ recommends attorney discipline

President Trump’s lawsuit against the Internal Revenue Service over his leaked tax returns was filed for an “improper purpose,” a judge said Monday in a scathing decision that referred one of his lawyers for discipline and characterized the $10-billion complaint as an exercise in self-dealing.

U.S. District Judge Kathleen Williams accused Trump of having manipulated the court system when he sued a federal agency under his control, bypassing a requirement that parties in a lawsuit must have adverse interests and laying the groundwork for a settlement last spring that granted him immunity from tax audits and created a fund to compensate allies of the president who say they were unjustly persecuted.

Though the practical impacts of the ruling may be limited given the administration’s public pronouncements that the so-called $1.776 billion Anti-Weaponization Fund has been abandoned, the judge’s ruling nonetheless amounts to a scathing rebuke of the Trump administration and resurfaces a politically damaging storyline for acting Atty. Gen. Todd Blanche just as he prepares to face the Senate Judiciary Committee for his confirmation hearing Wednesday.

“The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law,” Williams wrote in her ruling.

She added: “The President may be the functional ‘dominus litus’ of the Executive Branch, but as a party to a civil suit, he, as well as all the parties and lawyers before a court, are bound by the rules. Ensuring that our courts are used only for the express purpose created by the Constitution is the obligation of every judge and an obligation that this Court must discharge in light of the matter before it. ”

The judge pointed to Blanche’s congressional testimony in early June in which he revealed that the “anti-weaponization” fund was no longer moving forward amid intense bipartisan backlash. Though nothing had been filed in court, Blanche appeared confident in his testimony that he “could speak for, and bind, both sides of this matter,” the judge wrote.

“Acting Attorney General Blanche’s apparent capacity to speak for both Plaintiffs and Defendants, sign a ‘settlement’ document on behalf of all Parties to this action, and then repudiate part of that agreement, demonstrates that there was only one party whose interests were being represented throughout this case,” the judge wrote.

Tucker and Richer write for the Associated Press. AP writers Fatima Hussein and Michelle L. Price contributed to this report.

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Federal judge says Trump sued IRS for ‘improper purpose’

July 13 (UPI) — A federal judge in Florida said Monday that President Donald Trump sued the Internal Revenue Service for an “improper purpose” to reach a settlement with the Justice Department earlier this year.

U.S. District Judge Kathleen Williams in the Southern District of Florida added that the settlement Trump reached with the Justice Department protecting him and his family from tax audits is no longer valid.

Williams said Trump’s settlement with a Cabinet-level agency that he presides over is an attempt to “manipulate the judicial process.”

“The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law,” Williams wrote.

“In abdicating its responsibility to zealously defend the interests of the United States, the Government entered into a ‘settlement’ that deviated from its litigation posture in similar actions, disregarded DOJ policies, and accomplished objectives beyond those authorized, as well as those specifically prohibited, by law.”

Trump reached a settlement with the government after suing the IRS for $10 billion over a contractor leaking his tax information. Trump is the first president or nominee from the two major political parties in more than 40 years to not disclose his tax information.

Williams has referred Trump’s attorney in the lawsuit, Alejandro Brito, to the Florida bar. The bar will consider whether Brito should be disciplined based on Williams’ finding in her order. She is also sending a copy of her order to the State Bar of New York, where Acting Attorney Todd Blanche is a member.

Olympic canoeist David Hearn departs the Moultrie Courthouse after pleading not guilty to damaging the Lincoln Memorial Reflecting Pool on Thursday. Hearn was indicted on July 2 on one count of destruction of property of more than $1,000 for allegedly damaging the Reflecting Pool, carrying a maximum penalty of 10 years in prison if convicted. Photo by Bonnie Cash/UPI | License Photo

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Authoritarians target wives and children because it works. Trump is no different

The Trump Department of Justice going after people who make the president mad or even sad is nothing new, in this dangerous age when the presidency is increasingly about placating the desires of the old man in the Oval Office.

Leticia James, James Comey, Adam Schiff. Most recently, E. Jean Carroll, who sued President Trump personally and won a huge settlement on her claim that he sexually assaulted her. Now, the Department of Justice is investigating her for potential perjury.

It would be easy to think of Gov. Gavin Newsom’s announcement Monday that the U.S. Department of Justice is now targeting his wife, Jennifer Siebel Newsom, as just another addition to that list.

But this attack on Siebel Newsom (alleged attack, anyway — the Department of Justice has not confirmed she is a target) is something much darker in our slide into authoritarianism. While the details of what is being investigated are murky and the president hasn’t chimed in yet, it has all the appearances of the Trump administration seeking to stop a political rival who has a real shot at knocking MAGA out of the top office.

“It’s not just random or accidental that the wife of a major presidential candidate is being investigated,” Steven Levitsky, a professor of politics at Harvard University, told me Monday. “That’s the nature of selective prosecution and that is a pillar of authoritarian rule.”

Levitsky is an expert on authoritarian regimes, and how they take and keep power. His point that Newsom is a viable challenger may seem obvious — Newsom himself is already fundraising off of it. But this particular alleged investigation bears a moment of pause because it is not the regular decline of justice we have been witnessing to this moment.

“This is different,” he said. “This is forward-looking persecution.”

Until now, Levistky points out, Trump has screamed and hollered for the prosecution of those who have wronged him in the past, sometimes even the distant past. Yes, he’s disgraced the Department of Justice with the demand it function as his own personal hammer of retribution, even putting his own personal attorney, Todd Blanche, in charge when Pam Bondi wasn’t accommodating or successful enough at stomping perceived enemies and quashing the Epstein files.

But those prosecutions have largely been grievance-based, not aimed at keeping power.

Going after Siebel Newsom seems more like a forward-looking, preemptive strike targeting Newsom ahead of the 2028 election through every decent man’s Achilles’ heel, his family.

In fact, the right-wing media — which is closely tied to the whims of the White House — has been targeting Siebel Newsom for months.

In particular, Siebel Newsom has been attacked for her work as a documentary filmmaker who focuses on female empowerment and parsing how and why we have the gender norms that we do when it comes to masculinity and femininity. I’ll let you figure out how popular that is in MAGA world, where real women make sandwiches.

Conservative commentator Sean Hannity has gone after Siebel Newsom for saying she sometimes changes the gender of a book’s character from “he” to “she” when she’s reading to her children. Fox News has attacked her for daring to give her boys dolls to play with, leading some MAGA influencers to label her “psychotic” or “abusive.” Right-wing icon Megyn Kelly called her a “nutcase” for sharing the tragic story of her sister’s death when Siebel Newsom was 6.

And other media have focused on the fact that some of the films she has been involved with have been approved for use in California schools, leading to conspiracies that Newsom used his influence to force his wife’s “woke” agenda on kids, by which we are apparently talking about the liberal plagues of decency and inclusion.

Newsom’s office said that in recent weeks, relatives, friends and business associates of the family have been contacted by investigators from the FBI and IRS. Siebel Newsom also does work around online safety for children, but it seems likely that any attention would focus on these films, and related nonprofits, and the perennially popular MAGA boogeyman of schools forcing ideologies on kids. Throw in Siebel Newsom’s company making even a dollar, and the way the IRS can find problems with any tax return, and you’ve got about 10,000 hours of right-wing propaganda.

So whether the pressure to target Siebel Newsom came from the White House or not, Newsom’s announcement raises the troubling specter that this administration is getting more serious about remaining in control by kneecapping potential replacements before they grow too strong.

In his Monday video, Newsom urged Trump with mano a mano bravado to come after him as much as he wanted, but to leave his wife and family out of it. But I would not underestimate Siebel Newsom, who showed her strength when she testified against disgraced Hollywood mogul Harvey Weinstein, laying out publicly a private, painful tale.

Siebel Newsom’s office told me she’s fine being part of any fight against Trump.

“There are clearly no boundaries to what Donald Trump will do to get his way or to challenge those who get in his way,” Siebel Newsom said in a statement.

The “governor and I will continue to speak truth to power because the American people deserve so much more.”

By coming out in advance of any official announcement of an investigation by the Department of Justice, Siebel Newsom and her husband may be able to take control of the narrative, something Trump detests.

That pushback, Levitsky said, is critical, not just for them, but more importantly for all of us. After last year, when so many institutions and individuals crumbled in the face of Trump’s power, the strength of our democracy increasingly depends on those with political capital standing up to him.

Coming out punching first does just that.

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A watchdog report flags security risks in the IRS-ICE taxpayer data-sharing deal

A Treasury inspector general report raises concerns about Immigration and Customs Enforcement’s ability to safeguard taxpayer information after ICE and the Internal Revenue Service agreed in 2025 to share taxpayer data for the purpose of immigration investigations.

The recently released report provides the first official accounting of the scale of the IRS-ICE information transfer and documents security concerns surrounding an arrangement that has been the subject of multiple lawsuits and significant controversy inside both agencies.

The Treasury Inspector General for Tax Administration found that the 2025 data-sharing agreement between ICE and the Treasury Department — which allowed ICE to submit names and addresses of immigrants in the U.S. illegally to the IRS for cross-verification against tax records — resulted in inconsistent formatting in ICE’s data and the IRS’ matching criteria, which led to errors.

The deal led the then-acting commissioner of the IRS to resign.

The report says that after the agreement was signed, ICE requested address information on more than 1.2 million people, and that the IRS ultimately provided last-known addresses for about 47,000 people.

The inspector general concluded that the IRS’ automated matching process was flawed. Inconsistent formatting in ICE’s data led to questionable matches, including in cases in which incomplete or inaccurate addresses were labeled as valid, the report says.

Representatives from the Treasury Department and the IRS did not respond to a request for comment.

The plan to cross-verify tax and immigration data is part of President Trump’s agenda to secure U.S. borders and his nationwide immigration crackdown, which has resulted in deportations, workplace raids and the use of an 18th century wartime law to deport Venezuelan migrants.

However, this is not the first time it’s been revealed that tens of thousands of taxpayers’ information was revealed to ICE.

In February, a federal judge said the IRS broke the law by disclosing confidential taxpayer information to ICE, referring to the same 47,000 disclosures that the inspector general points out.

U.S. District Judge Colleen Kollar-Kotelly found that the IRS had erroneously shared the taxpayer information of thousands of people with the Department of Homeland Security as part of the 2025 agreement.

No recommendations were made in the new inspector general report, according to a letter by Nancy A. LaManna, deputy inspector general for inspections and evaluations.

“However, we plan to share some concerns we identified during our review with the DHS Office of Inspector General,” her letter says.

Hussein writes 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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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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