Acting Attorney General Todd Blanche testifies before the House Appropriations Committee, Tuesday, June 2, 2026 in Washington. (AP Photo/Allison Robbert)

WASHINGTON — The Trump administration is scrapping plans to create a $1.8 billion fund meant to compensate allies of the Republican president, the Justice Department’s top official said Tuesday in retreating from a program that faced setbacks in the courts and a fierce political backlash that had threatened to stall key elements of the White House agenda.

“We are not moving forward with the fund, period,” Blanche said in response to questions at a House hearing on the Justice Department budget.

“Not moving forward, ever?” asked Rep. Grace Meng, a New York Democrat.

“Correct,” Blanche answered.

The blunt declaration marked an extraordinary, and rare, turnabout in the face of mounting political opposition to a fund officials said was intended to compensate people who believe they have been improperly targeted by the criminal justice system.

But since the fund’s creation two weeks ago, it’s been paused by a judge and lambasted by Democrats and Republicans alike who said they were troubled by a lack of oversight of the money disbursement and the potential for payouts to participants in the violent Jan. 6, 2021, riot at the U.S. Capitol.

The furor especially complicated matters in the Senate, where Republicans defiantly left town nearly two weeks ago without passing legislation to fund President Donald Trump’s immigration enforcement agencies after Democrats said they would offer amendments to scrap or scale back the compensation fund. Furious, Senate Republicans jettisoned White House security money from the bill and made clear they would not pass the legislation at all unless the administration made major changes to the plan. They had sought reassurances from Blanche before moving forward.

The $1.776 billion “Anti-Weaponization Fund” was established to resolve Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns. The Justice Department had said it was an appropriate measure to correct what officials have insisted was the weaponization of federal law enforcement under the Biden administration, when Trump faced criminal charges and several of his allies were investigated and prosecuted.

The administration had said that anyone who felt unfairly persecuted could apply for compensation regardless of political affiliation, but Blanche’s refusal to publicly foreclose the possibility that people convicted of crimes of violence in the Jan. 6 riot could get payouts alarmed lawmakers. A five-member commission was to have been responsible for deciding on the payouts.

Blanche made clear Tuesday that he stood behind the rationale for the fund even as he was abandoning its implementation, saying: “This Department of Justice was weaponized against many, many Americans. And we’re trying every day to to fix it. And we’ve made a lot of progress, but we have a lot more to do.”

On Friday, a federal judge in Virginia halted the fund’s formation and any potential payouts for at least two weeks and scheduled a June 12 hearing for arguments on whether to extend her order.