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

by | Jul 31, 2026 | Top Stories

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

President Donald Trump announced on Friday that his administration has agreed to abandon a proposed $1.8 billion fund intended to compensate individuals prosecuted by the Justice Department, though he simultaneously expressed disagreement with that decision. The fund would have provided compensation to people charged in connection with the violent Capitol attack, whom Trump described as suffering and ruined.

The statement created further complications in ongoing Senate negotiations regarding the confirmation of Todd Blanche as attorney general. Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina have blocked Blanche’s nomination, demanding a formal written commitment that the compensation fund will not be established. The two senators have been negotiating with the White House for weeks but said they remain unsatisfied with the administration’s assurances.

Trump’s contradictory messaging—declaring the fund dead while arguing it was necessary—drew immediate criticism from Tillis, who said the remarks demonstrated the fund remained active. Blanche had previously indicated during a hearing that the anti-weaponization fund would not proceed after Republican senators objected, but Trump’s recent comments suggested the position remained flexible.

Beyond the compensation fund, Cornyn and Tillis have raised additional concerns about a separate component of the settlement involving tax audit immunity for Trump and his family members. Cornyn stated that the arrangement could potentially extend to more than 100 Trump organization subsidiaries in the future, and both senators are seeking written clarification that the immunity applies only to the litigation parties involved and covers only past audits rather than future ones.

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