President Donald Trump on Friday publicly acknowledged for the first time that the $1.776 billion Anti-Weaponization Fund is no longer moving forward, calling it 'dead' during a Cabinet meeting at Camp David. Trump reiterated his desire to see compensation for individuals he alleges were targeted by federal agencies during the previous administration, though he did not provide details on how such payments might proceed without the fund.
Fund's status confirmed after legal and congressional setbacks
The fund was proposed as part of a settlement agreement in a lawsuit where Trump sued the Internal Revenue Service (IRS) over a leak of his tax returns. The Department of Justice initially announced the fund in early 2026 but faced immediate legal and political challenges. A federal judge blocked the fund from taking effect in June, and acting Attorney General Todd Blanche testified to Congress the same month that the government would not proceed with the payments.
During the June 2 hearing, Blanche stated, 'We are not moving forward with the fund, period.' The decision followed bipartisan opposition in Congress, with lawmakers questioning the legality of diverting taxpayer funds to compensate individuals without clear legal authority. Government attorneys argued that ongoing lawsuits challenging the fund had become moot following the DOJ's reversal.
Trump reiterates support for compensation despite fund's collapse
In his remarks Friday, Trump framed the fund as a mechanism to address what he described as widespread abuse by federal agencies. He cited 'many, many suicides' and 'families ruined' among those allegedly targeted, though he did not provide specific examples or data to support these claims. Trump emphasized that the fund was not for his benefit, stating, 'This fund was for those people.'
The fund's collapse has also impacted the confirmation process for Blanche, who was nominated for the permanent role of Attorney General. Republican Senator John Cornyn, a key holdout on Blanche's nomination, has demanded the DOJ formally document the fund's discontinuation in writing. Cornyn's request follows Blanche's sworn testimony that the fund would not proceed, which Trump did not address in his remarks.
Legal and political fallout continues
The DOJ's decision to abandon the fund leaves unresolved questions about whether alternative compensation mechanisms could be pursued. Plaintiffs who opposed the fund argued it amounted to an illegal 'slush fund' for political allies, while supporters framed it as a necessary remedy for alleged government overreach. The fund's failure also raises broader questions about the scope of executive authority in settling lawsuits involving federal agencies.
Trump did not specify whether he would explore other avenues for compensation, nor did he address the timeline for Blanche's confirmation process. The White House has not responded to requests for further clarification on next steps.