Acting Attorney General Says Trump’s $1.8 Billion ‘Anti-Arms’ Fund Is Being Abolished | Donald Trump

The federal government is abandoning efforts to create a secret $1.8 billion fund to compensate Donald Trump’s allies but is maintaining an agreement that prohibits the Internal Revenue Service (IRS) from auditing Trump, his family and related entities, Acting Attorney General Todd Blanche said Tuesday.

“We’re not moving forward with the fund, period,” Blanche said during a House Appropriations Committee hearing Tuesday. “The reasons for this fund are something that President Trump has talked about for a long time, which is the fact that there were a lot of people in this country whose government was a weapon against them. The reasons for this fund, I think, remain as important as before, but we are not moving forward with this fund.”

He then added that the Justice Department would continue to grant tax immunity to Trump and his family members before reaching a deal last month. He did not explain why the ministry abandoned the arms fund but preferred to adopt the anti-audit provision.

The agreements were reached to resolve a long-running $10 billion lawsuit filed by Trump against the IRS over the leak of his tax returns. Democrats and Republicans strongly opposed the creation of a loosely controlled $1.776 billion fund that would be allocated without restriction to the president’s allies.

Blanche insisted Tuesday that the agreement allowing immunity from audits was normal, but former IRS officials said they were not aware of any other similar cases. “Whether you’re president or Joe the Plumber, people expect the same tax rules and enforcement framework to apply to everyone,” Daniel Werfel, former IRS commissioner, told NPR.

Others said the deal could run afoul of the constitutional emoluments clause, which prohibits the president from taking personal financial advantage of his office. Discharging the president’s potential tax liability could provide a financial benefit.

The fund has faced significant headwinds in recent weeks. A federal judge in the Eastern District of Virginia blocked the Trump administration from taking action on the fund in the coming weeks while lawsuits were pending. A federal judge in Florida overseeing the trial that led to the creation of the fund and the agreement allowing audit immunity also took the extraordinarily unusual step of reopening the case to see if there had been any wrongdoing.

Even if the federal government abandons plans to create this fund, individual victims may have the opportunity to seek relief by filing administrative claims for damages against the government. The Justice Department has broad discretion in choosing how to resolve these cases, so Jan. 6 and other defendants could still receive compensation. Enrique Tarrio, the former leader of the far-right Proud Boys party who was convicted of seditious conspiracy, told a PBS News Hour reporter that this is one possible path for the Jan. 6 defendants to continue seeking redress.

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