Trump gives up billion-dollar fund to compensate people 'persecuted' by the government, says US press

US President Donald Trump points the finger during a cabinet meeting in the White House Cabinet Room, in Washington, DC, USA, on May 27, 2026
REUTERS/Evan Vucci
US President Donald Trump, of abandoning his US$1.8 billion fund that would benefit political allies, including supporters who stormed the Capitol in January 2021, the website Axios reported on Monday (1st). The newspaper "The New York Times" and Reuters and AP agencies obtained the same information.
Named the "anti-instrumentalization fund", the initiative suffered a wave of criticism, including from some of his Republican colleagues.
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"It's dead for now," said one of the two senior government officials cited by Axios.
The fund, which would compensate victims of political "instrumentalization" with taxpayer money, emerged from a legal settlement between Trump's Justice Department and the Internal Revenue Service (IRS) to resolve an unprecedented lawsuit in which the president sought $10 billion for alleged mismanagement of his tax returns.
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The announcement sparked criticism, with lawmakers raising concerns about possible favoritism by Trump and the possibility of payments to violent Trump supporters who stormed the U.S. Capitol and assaulted police officers on January 6, 2021.
On Friday, a judge temporarily blocked the government from proceeding with the fund.
Trump's agreement with the IRS also led the US government to abandon audits and collections linked to tax investigations already opened against Trump, family members and Trump group companies, in addition to providing for a formal apology to the president.
Fund for allies
According to acting attorney general Todd Blanche, the fund would create a legal process so that people who allege they have been politically persecuted can submit requests for financial compensation.
According to the Department of Justice, the money will come from a reserve used to pay compensation and legal settlements from the federal government.
The fund will be able to analyze reports of political persecution, issue formal apologies and grant financial compensation to successful candidates.
A committee of five members, appointed by Blanche, will be responsible for evaluating the requests. The president will have the power to replace members of the group.
The program is expected to run until December 2028.
The government did not disclose the names of possible beneficiaries or detailed criteria for receiving compensation.
Among the cases cited by analysts are investigations against Trump's allies during the government of former president Joe Biden, including processes linked to the invasion of the Capitol on January 6, 2021.
More than 1,500 people have been charged with the attacks. Asked about the possibility of participants in the episode receiving payments, Trump said that the decision will be up to the committee responsible for the fund.
Among allies under investigation who could seek compensation are former strategist Steve Bannon and former trade advisor Peter Navarro, both convicted of contempt of Congress and who deny wrongdoing.
Why the fund has become the target of criticism
President Donald Trump walks to speak to reporters as he prepares to board the Marine One helicopter on the South Lawn of White House, on Friday, May 1, 2026, in Washington
Mark Schiefelbein / AP
Democratic parliamentarians and public ethics organizations say the fund could become a mechanism to direct public money to the president's political allies.
Representative Jamie Raskin, top Democrat on the House Judiciary Committee, said the measure paves the way for the creation of a "political fund" financed by taxpayers.
Already the Senator Elizabeth Warren classified the initiative as "extreme level corruption" and presented a bill to prevent presidents from benefiting financially from agreements with the government.
The Trump administration claims that the fund was created to repair what the president calls the political use of the Department of Justice against him and allies during the Biden administration.
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Source: G1