The Trump administration is abandoning the $1.8 billion fund that was intended to compensate people who were targeted by government "weaponization" under previous administrations, according to senior administration officials, following bipartisan criticism and a federal court order blocking the program.
In a statement posted June 1 on social media, the Justice Department said it strongly disagreed with the recent ruling that shut down the program but would comply with the court's order.
The Department of Justice disagrees strongly with the decision on the Anti-Weaponization Fund put forth by the United States District Court Judge in the Eastern District of Virginia, wherein the Court stated that, under no circumstances, may the Department of Justice proceed with…
— U.S. Department of Justice (@TheJusticeDept) June 1, 2026
"The Department will abide by the Court's ruling," the statement said, while arguing the fund was intended to assist anyone who had been "weaponized, targeted, or persecuted," regardless of political affiliation.
The statement came hours after two senior officials told Axios that the proposed Anti-Weaponization Fund is "dead for now" and that the administration intends to drop the initiative as it focuses on other priorities, including funding for immigration enforcement.
As Zeale News reported, the fund was created as part of a settlement announced in May between President Donald Trump and the federal government over the leak of Trump family tax returns. Under the agreement, Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization agreed to drop a $10 billion lawsuit against the Treasury Department and Internal Revenue Service in exchange for a formal apology and the creation of a $1.776 billion fund for alleged victims of government "weaponization" and "lawfare."
Critics from both parties questioned the legality of the arrangement and warned it could become a political “slush fund” benefiting Trump allies. Some lawmakers also complained the fund could benefit people convicted in connection with the Jan. 6, 2021, riot at the U.S. Capitol.
Republican Sen. Lindsey Graham of South Carolina and other GOP lawmakers raised concerns about oversight, precedent, and the use of taxpayer dollars. Bipartisan legislation was also introduced to eliminate the fund.
The administration's retreat comes after U.S. District Judge Leonie Brinkema of the Eastern District of Virginia temporarily blocked the fund on May 29, halting any transfer of money, consideration of claims, or disbursement of payments while legal challenges proceed. Brinkema scheduled a hearing for June 12.