In a controversial move that has ignited fierce partisan backlash, the U.S. Department of Justice, now led by former personal lawyer of President Donald Trump Todd Blanche, announced Monday the creation of a $1.7 billion “Anti-Weaponization Fund” designed to compensate political allies who were prosecuted during the prior Biden administration. The new fund is the centerpiece of a settlement agreement that ends a high-profile $10 billion damages lawsuit Trump and his two eldest sons, Donald Jr. and Eric, brought against the Internal Revenue Service (IRS) earlier this year over the unauthorized leak of the president’s personal tax returns.
The legal dispute stemmed from a 2023 case in which a former IRS contractor pleaded guilty to leaking confidential tax records of Trump and dozens of other high-net-worth individuals to major media outlets, ultimately receiving a five-year federal prison sentence for the offense. Under the terms of the settlement, the DOJ confirmed that Trump will not receive any financial compensation or damages from the fund, though he will be issued a formal apology for the privacy breach. Blanche, who currently serves as acting attorney general, framed the initiative as a long-overdue correction of past government overreach. “The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” Blanche said in a formal statement. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.” Blanche will personally appoint a five-person panel to oversee the fund’s allocation and claims process, according to department officials.
Critics across the political aisle, however, have blasted the initiative as an unprecedented abuse of power and a blatant misuse of taxpayer dollars to reward Trump’s loyalists. Democratic lawmakers and government watchdog groups were quick to label the initiative a brazenly corrupt “slush fund,” with top Democratic leaders leading the charge against the plan. Senate Minority Leader Chuck Schumer called the scheme one of the most depraved acts of corruption in modern American political history. “Donald Trump sued his own government. Trump’s DOJ settled with Trump. And now Trump gets a nearly $2 billion slush fund to reward his own allies, loyalists, and insurrectionists,” Schumer said in a scathing statement. “Of all the corrupt things he has done, this is one of the most depraved.”
Nonprofit consumer advocacy organization Public Citizen echoed the criticism, describing the fund as a “monstrous theft of taxpayer resources” and calling on Congress to immediately block any disbursements from the account. Even former 2016 presidential opponent Hillary Clinton weighed in, condemning the move as an outrageous misuse of public funds. “Trump didn’t just pardon his followers who stormed the US Capitol. He’s now set them up for payments through a slush fund he created to reward his allies — out of your tax dollars. You could not make this up,” Clinton posted on social media.
Among those eligible to file claims for compensation are hundreds of Trump supporters who faced prosecution for their role in the January 6, 2021, attack on the U.S. Capitol, an insurrection aimed at blocking the congressional certification of Joe Biden’s 2020 presidential election victory. Shortly after winning re-election in 2024, Trump issued a sweeping mass pardon for all January 6 defendants on his first day back in office, and the new fund would allow those individuals to seek financial compensation for their prosecutions.
The creation of the fund marks the latest in a series of retaliatory actions Trump has taken against perceived political opponents since returning to the White House for a second term. His administration has already moved forward with plans to pursue new criminal cases against political rivals, purged thousands of career government officials deemed insufficiently loyal to the president, targeted private law firms that previously worked on legal cases against him, and pulled federal research and education funding from universities across the country that Trump has criticized for being too liberal. Both of the high-profile criminal cases that special counsel Jack Smith brought against Trump prior to the 2024 election — one centered on efforts to overturn the 2020 election results and another related to improper handling of classified national security documents — were dropped immediately after Trump’s inauguration.









