todd blanche

WASHINGTON — 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.

WASHINGTON — President Trump’s acting attorney general on Thursday signed an order reclassifying state-licensed medical marijuana as a less-dangerous drug, a major policy shift long sought by advocates who said cannabis should never have been treated like heroin by the federal government.

The order signed by Todd Blanche does not legalize marijuana for medical or recreational use under federal law. But it does change the way it’s regulated, shifting licensed medical marijuana from Schedule I — reserved for drugs without medical use and with high potential for abuse — to the less strictly regulated Schedule III. It also gives licensed medical marijuana operators a major tax break and eases some barriers to researching cannabis.

The Trump administration also said it was jump-starting the process for reclassifying marijuana more broadly, setting a hearing to begin in late June.

Trump told his administration in December to work as quickly as possible to reclassify marijuana. On Saturday, as the Republican president signed an unrelated executive order about psychedelics, he seemed to express frustration that it was taking so long.

Blanche said Thursday that the Department of Justice was “delivering on President Trump’s promise” to expand Americans’ access to medical treatment options. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” he said in a statement.

What the marijuana reclassification order does

Blanche’s action largely legitimizes medical marijuana programs in the 40 states that have adopted them. It sets up an expedited system for state-licensed medical marijuana producers and distributors to register with the U.S. Drug Enforcement Administration.

It makes clear that cannabis researchers won’t be penalized for obtaining state-licensed marijuana or marijuana-derived products for use in their work, and it grants state-licensed medical marijuana companies a windfall by allowing them, for the first time, to deduct business expenses on their federal taxes.

Any marijuana-derived medicine approved by the Food and Drug Administration is similarly listed in Schedule III, it said.

Since 2015, Congress has prohibited the Justice Department from using its resources to shut down state-licensed medical marijuana systems. But the order nevertheless represents a major policy shift for the U.S. government, which has continued its long-standing marijuana prohibition — dating to the Marihuana Tax Act of 1937 — even as nearly all the states have approved cannabis use in some form.

Two dozen states plus Washington, D.C., have authorized adult recreational use of marijuana, 40 have medical marijuana systems, and eight others allow low-THC cannabis or CBD oil for medical use. Only Idaho and Kansas ban marijuana outright.

The regulation of medical marijuana has come a long way since California became the first state to adopt it in 1996, Blanche wrote.

“Today the vast majority of States maintain comprehensive licensing frameworks governing cultivation, processing, distribution, and dispensing of marijuana for medical purposes,” Blanche wrote. “Taken as a whole, they demonstrate a sustained capacity to achieve the public-interest objectives … including protecting public health and safety and preventing the diversion of controlled substances into illicit channels.”

The president of the American Trade Assn. for Cannabis and Hemp, Michael Bronstein, called it “the most significant federal advancement in cannabis policy in over 50 years.”

“This action recognizes what Americans have long known, cannabis is medicine,” he said in a written statement.

Critic calls the order ‘a tax break to Big Weed’

The Trump administration’s decision drew derision from marijuana legalization opponent Kevin Sabet, the chief executive of Smart Approaches to Marijuana. Sabet said that while marijuana research is necessary, “there are many ways to increase our knowledge without giving a tax break to Big Weed and sending a confusing message about marijuana’s harms to the American public.”

“With this move, we are now confronted with the most pro-drug administration in our history,” Sabet said in a text message. “Policy is now being dictated by marijuana CEOs, psychedelics investors, and podcasters in active addiction.”

Marijuana or marijuana-derived products that are not distributed through a state medical marijuana program will continue to be classified in Schedule I.

Schedule III drugs are defined as having moderate to low potential for physical and psychological dependence. Some critics of the industry have suggested that legalization in the states has led to stronger and stronger cannabis products, which need to be researched rather than categorized less strictly than before.

The efforts to reclassify marijuana

The Justice Department under President Biden had proposed to reclassify marijuana, eliciting nearly 43,000 formal public comments. The DEA was still in the review process when Trump succeeded Biden, and Trump ordered that process to move along as quickly as legally possible.

Blanche’s order sidestepped the review process by relying on a provision of federal law that allows the attorney general to determine the appropriate classification for drugs that the U.S. must regulate pursuant to an international treaty.

It was unclear how the order might affect operations in states where licensed recreational marijuana shops also sell to medical patients. In Washington state, which in 2012 became one of the first states to legalize the adult use of marijuana, 302 of 460 licensed stores have endorsements allowing them to sell tax-free cannabis products to registered patients.

Many Republicans oppose loosening marijuana restrictions. More than 20 Republican senators, several of them staunch Trump allies, signed a letter last year urging the president to keep the current standards.

Trump has made his crusade against other drugs, especially fentanyl, a feature of his second term, ordering U.S. military attacks on Venezuelan and other boats the administration insists are ferrying drugs. He signed another executive order declaring fentanyl a weapon of mass destruction.

Richer and Johnson write for the Associated Press. Johnson reported from Seattle.