California Today

Trump Administration Pauses $1.8 Billion Fund for Allies Amid Legal and Political Backlash

01 June 2026 15:55

The Trump administration has temporarily paused a $1.8 billion fund meant to compensate allies of President Donald Trump, following a federal court order and fierce backlash from Republicans. - The fund, called the "Anti-Weaponization Fund," was created to resolve Trump's lawsuit against the IRS over leaked tax returns.

- A federal judge in Virginia blocked the fund's formation pending a June 12 hearing, and the Justice Department said it would comply despite disagreeing strongly. - Republicans in Congress raised concerns about oversight and potential payouts to participants in the January 6 Capitol riot, complicating passage of a Homeland Security spending bill.

- Separately, a federal judge in Florida ordered Trump's attorneys to respond to allegations of collusion and fraud in the underlying lawsuit. The administration's decision to pause the fund marks a significant retreat amid legal setbacks and political pressure from within the Republican party.

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