Blanche is scrapping $1.8B slush fund but will keep tax audit immunity for Trump family

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https://apnews.com/article/blanche-fund-justice-department-january-6-c06a4aa4a1052055bc67c4a0a54984e3

Blanche says Trump administration is scrapping $1.8B fund meant to compensate president’s allies
By ERIC TUCKER and ALANNA DURKIN RICHER
Updated 4:02 PM CDT, June 2, 2026

WASHINGTON (AP) — Acting Attorney General Todd Blanche said Tuesday that the Trump administration was scrapping plans to create a $1.8 billion fund meant to compensate allies of the Republican president after widespread political backlash and setbacks in the courts.

“We are not moving forward with the fund, period,” Blanche said in response to questions at a House hearing on the Justice Department budget.

"“Not moving forward, ever?” asked Rep. Grace Meng, a New York Democrat.

The blunt declaration marked an extraordinary turnabout for a Trump Justice Department that just two weeks ago had pronounced the fund as essential to make up for what officials insist was weaponized law enforcement during President Joe Biden’s Democratic administration. Since then, though, the idea has faced mounting pressure from Republicans who demanded reassurances that plans for the fund were off the table before they would move forward with legislation funding President Donald Trump’s immigration enforcement agencies.

Blanche said the Justice Department was not abandoning an element of a settlement with the IRS that gave Trump and his family immunity from tax audits.

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