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Trump administration cuts $1.8 billion ‘anti-arms fund’ | Donald Trump News

Trump administration cuts .8 billion ‘anti-arms fund’ | Donald Trump News


Published on June 2, 2026 June 2, 2026

US President Donald Trump’s administration is abandoning its nearly $1.8 billion “anti-arms” fund following widespread political backlash and legal setbacks.

Acting Attorney General Todd Blanche confirmed the pivot Tuesday, during an appearance before the House Appropriations Committee.

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“We are not moving forward with the fund,” Blanche told lawmakers after intense and rare backlash from Trump’s fellow Republicans. “Period.”

The blunt statement marked an extraordinary turnaround for the Justice Department, which just two weeks ago disclosed the fund as a settlement to a personal lawsuit Trump filed against his own government.

As part of the settlement, the $1.8 billion fund would distribute compensation to victims of government “legal warfare” and “militarization,” terms Trump used to denounce lawsuits filed during the Democratic administration of former President Joe Biden.

Additionally, the agreement prohibited any future audits of his family’s past tax records.

That part of the regulation will remain in effect, Blanche told lawmakers Tuesday. But the $1.8 billion fund would be set aside, he said, confirming media reports a day earlier.

Blanche’s announcement comes as furious senators deadlock with Trump over a $72 billion bill to fund immigration enforcement.

Congressional leaders questioned whether they could pass the bill if the Trump administration did not abandon the fund, which was politically unpopular.

A source close to White House thinking told the Reuters news agency that Blanche’s future depends on her ability to address those concerns.

Blanche angered lawmakers last month when he failed to commit to stopping the fund from distributing money to rioters who assaulted police officers during the Jan. 6, 2021, attack on the Capitol.

The fund grew out of a legal settlement between Trump and the Justice Department aimed at resolving an unprecedented $10 billion lawsuit against the Internal Revenue Service (IRS) over alleged mismanagement of its tax records.

This trial has also raised concerns about conflicts of interest, since Trump, as president, wields influence over both the IRS and the Justice Department.

The fund was already suspended by a judge last week, as legal challenges continue over its legality.

Reuters reported that White House officials spent much of Monday calling lawmakers to assure them there would be no payment, citing two sources familiar with the matter, who spoke on condition of anonymity.

Trump cites praise fund

The White House referred questions about Blanche’s comments to the Justice Department, which did not immediately respond to a request for comment.

On Monday, the ministry said it would comply with a court order temporarily suspending the fund until June 12, but it did not say whether the fund would be permanently closed.

Trump broke his public silence on the future of the fund Tuesday afternoon, posting a link to a sub-stack titled “The Truth the Media Won’t Tell You About the Anti-Military Fund.”

The post praises Trump for giving money to those who say they have been taken advantage of by the government and criticizes the media and Democrats for calling it a slush fund.

After a lunch meeting of Republican senators, Senate Majority Leader John Thune told reporters that he had spoken with Blanche earlier in the day and believed the acting attorney general would allay concerns during the House hearing.

Thune said he wanted the bill to be narrowly focused on immigration enforcement and not Trump’s other priorities.

That included scrapping a billion-dollar proposal to secure an 8,000-square-meter (90,000-square-foot) ballroom on the White House grounds, as Trump wanted.

Such a provision would have prevented Senate Republicans from passing the immigration funding bill with a simple majority, consistent with the chamber’s budget reconciliation rules.

The “anti-arms” fund, meanwhile, would have drawn money directly from the Justice Department’s judgment fund, thereby bypassing congressional oversight, another sore point for lawmakers.

At Tuesday’s House hearing, Democratic lawmakers pressed Blanche to commit in writing to abandoning the fund, which he refused to do.

Senior Democrats, such as Senator Chuck Schumer, have pledged to introduce legislation in Congress to prevent the creation of such a fund in the future.

Sources

1/ https://Google.com/

2/ https://www.aljazeera.com/economy/2026/6/2/trump-administration-is-scrapping-the-1-8bn-anti-weaponisation-fund

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