WASHINGTON - The Trump administration signaled it is retreating from a heavily criticized $1.776 billion "anti-weaponization" fund that was designed to compensate Americans who say they were unfairly prosecuted during the Biden and Obama presidencies.

The Justice Department on June 1 said it would stop working on establishing the fund after a federal judge temporarily blocked its creation.

Slammed by critics as "slush fund" for President Donald Trump's allies, the undertaking faced bipartisan opposition in Congress and became an obstacle for Republican leaders to pass a bill aimed at boosting immigration enforcement.

A federal judge in Virginia on May 29 temporarily ordered the Trump administration not to take further action creating or operating the fund, including transferring any federal dollars or considering any claims. A court hearing is set for June 12 in a case brought by opponents, including a prosecutor who tried cases against people who attacked the Capitol on Jan. 6, 2021.

The Justice Department in a statement said it would "abide by the Court's ruling" despite disagreeing with the order.

The move came after House Speaker Mike Johnson discussed the fund with Trump at a nearly three-hour meeting at the White House on June 1, according to a source familiar with the discussion. The source, who requested anonymity, said Johnson's meeting with Trump resulted in the Justice Department issuing its statement.

Axios, citing two senior administration officials, reported that Trump plans to drop the anti-weaponization fund entirely. Bloomberg cited a senior administration official also saying it would be scrapped.

Anti-weaponization fund grew from settlement in IRS case Acting Attorney General Todd Blanche announced the fund on May 18 as part of a settlement agreement in a lawsuit that Trump and his family brought against the IRS seeking $10 billion in damages over the president's leaked tax returns.

The Trump family agreed to voluntarily drop the lawsuit ? meaning a federal judge won't rule on the merits of the claims ? in exchange for the fund's creation.

Critics raised alarms about the fund potentially be used to funnel money to Jan. 6 defendants who were convicted of assaulting police officers. (Source: USA Today)

Story Date: June 2, 2026