WASHINGTON — The Trump administration discontinued the creation of a $1.776 billion "Anti-Weaponization Fund." Acting Attorney General Todd Blanche announced the fund's cancellation during a House Appropriations Committee hearing on June 2, 2026.
During the hearing, Representative Grace Meng asked Blanche for clarification. "Not moving forward ever?" Meng asked. Blanche responded, saying, "We are not moving forward with the fund, period." He also confirmed that a previous agreement with the IRS remained unchanged. "Nothing has changed with that." Blanche said.
The fund was established in May 2026 to resolve a lawsuit filed by Trump against the IRS over the leak of his tax returns. A federal judge in Virginia suspended the formation of the fund and potential payouts for at least two weeks. The judge scheduled a June 12 hearing to consider extending that suspension order. Lawsuits challenging the fund were filed by a former January 6 prosecutor and two Capitol police officers.
As part of the settlement agreement, the IRS agreed to drop pending investigations of Trump regarding his tax payments. A five-member commission had been designated to determine payout eligibility for the fund. Senate Republicans delayed legislation intended to fund immigration enforcement agencies, seeking changes to the compensation structure of the fund.
Senate Majority Leader John Thune commented on the situation. "I do think the best way to handle it is if the administration decides to shut it down themselves." Thune said. Representative Rosa DeLauro criticized the administration's actions. "This administration has engaged in what are perhaps the most brazen acts of flagrant corruption I've ever seen." DeLauro said. She added, "The fund is a corrupt payout scheme for the president and his political allies. It is shameful." Skye Perryman, President and CEO of Democracy Forward, said, "If you can say it on TV, you should say it in court."