President Donald Trump’s proposed $1.8 billion “anti-weaponization” fund — a taxpayer-financed pool compensating victims of alleged government overreach — has been put on indefinite hold, three sources told the South China Morning Post. The White House faced a furious backlash, not from Democrats but from its own party: Republicans in Congress, particularly senators wary of executive overreach, forced the retreat.
The fund originated from a settlement between Trump and the IRS over a $10 billion lawsuit the president brought against the agency. Critics, including some GOP lawmakers, saw the fund as a “slush fund” that could have funneled millions to Trump allies, including January 6 rioters, with minimal oversight. A federal judge in Virginia had already issued a temporary restraining order blocking disbursements.
The political fallout immediately reshaped the Senate agenda. Majority Leader John Thune (R-S.D.) said the administration’s retreat clears a path for the stalled budget reconciliation package, which funds immigration enforcement operations. “This decision removes a major distraction,” one GOP aide told The Hill, suggesting the fund had become a liability for Republican priorities.
Republican senators who had threatened to withhold support for the broader legislative package applauded the move. The reversal underscores a renewed willingness among some GOP lawmakers to challenge Trump’s unilateral actions, especially after he endorsed primary challengers against two incumbents. The fund’s demise also deprives the administration of a potent tool to reward political allies.
Critics argue the fund never had legal or political viability. “This was never a serious policy — it was a loyalty test that backfired,” a Senate Democratic aide said. While Trump retains broad executive authority, the episode highlights growing friction between the White House and congressional Republicans on spending and accountability.