# Trump administration scraps $1.77B 'anti-weaponization' fund  
**Published:** 2026-06-03T00:50:56.000Z  
**Source:** [Nebraska Examiner](https://nebraskaexaminer.com/2026/06/02/repub/trump-administration-dumps-1-77b-anti-weaponization-fund/)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://lincolne.news/article/trump-administration-scraps-1-77b-anti-weaponization-fund

The Trump administration has abandoned plans to distribute nearly $1.8 billion in taxpayer funds to people who claim they were wrongly prosecuted by the Justice Department, according to [the Nebraska Examiner](https://nebraskaexaminer.com/2026/06/02/repub/trump-administration-dumps-1-77b-anti-weaponization-fund/). Acting Attorney General Todd Blanche confirmed the decision Tuesday before a House committee, saying the DOJ will not proceed with the controversial "Anti-Weaponization Fund."

[Senate Majority Leader John Thune](https://www.thune.senate.gov/), a South Dakota Republican, announced the reversal shortly before Blanche's testimony. The decision clears potential obstacles to a roughly $70 billion [immigration and deportation package](https://www.congress.gov) that Senate Republicans have been trying to advance. "We're not moving forward with the fund, period," Blanche told the House Appropriations subcommittee when pressed by its top Democrat.

The fund was created as part of a settlement stemming from [President Trump's $10 billion lawsuit](https://www.justice.gov) against the IRS over leaked tax returns. The settlement would have allowed individuals claiming government "weaponization" to seek compensation through a five-member commission. The proposal drew intense criticism from both Democrats and some Republicans, who called it a "slush fund" and expressed concern about potential payments to Capitol riot defendants.

A federal judge had already temporarily blocked the fund's creation last week, raising questions about its legality. Democratic lawmakers vowed to permanently block it through legislation. Senate Minority Leader Chuck Schumer said Tuesday that Trump "has not killed this slush fund" and that the administration "hit a temporary roadblock." He pledged to offer amendments banning the fund during Senate debates on immigration legislation.

Republican senators had expressed deep reservations about the fund, with some refusing to move forward on immigration bills until the matter was resolved. North Carolina Sen. Thom Tillis said he would not accept taxpayer dollars going to people who attacked the Capitol on January 6, while others sought clarification on the settlement's scope.

Notably, Blanche said the DOJ will maintain other provisions of the settlement, including protections shielding Trump and his family from IRS audits related to prior tax returns. That aspect of the deal has also drawn legal scrutiny from Democrats and tax law experts who question its legality.

## Sources

- [Nebraska Examiner](https://nebraskaexaminer.com/2026/06/02/repub/trump-administration-dumps-1-77b-anti-weaponization-fund/)
- [Senate Majority Leader John Thune's official website](https://www.thune.senate.gov/)
- [Justice Department official announcements](https://www.justice.gov)
- [Congress.gov legislative information](https://www.congress.gov)

---

This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Nebraska Examiner, enriched with 3 web searches. The original source is available at https://nebraskaexaminer.com/2026/06/02/repub/trump-administration-dumps-1-77b-anti-weaponization-fund/.