Trump to abandon $1.776 billion compensation fund amid bipartisan backlash, source says
A few days after the Trump administration unveiled its $1.776 billion compensation fund, acting Attorney General Todd Blanche went to Capitol Hill to brief Senate Republicans on the details and answer their questions. He likely expected some modest pushback, since a handful of GOP senators had already gone on record announcing their opposition to what they described as a “slush fund.”
But Donald Trump’s former defense lawyer probably wasn’t prepared for the ferocity of the response from those in attendance. In fact, we don’t even have to speculate based on leaks from unnamed officials: Republican Sen. Ted Cruz of Texas said on his podcast that his Senate colleagues “screamed” at Blanche, as part of “one of the roughest meetings I’ve seen in my entire time in the Senate.”
“Fiery does not begin to cut it,” Cruz added. “My guess is there [were] probably 45 senators in the room; at least half of them were blasting the attorney general, and they were pissed.”
Note, he was referring to an exclusively Republican audience — Democrats were not invited to this briefing, and none was in attendance — suggesting that “at least half” of the Senate GOP conference wanted Trump’s sycophantic acting attorney general to know, with varying degrees of intensity, that they were not on board with this idea, especially in an election year in which the party is already facing headwinds.
The president has faced occasional and sporadic pushback from his ostensible allies on Capitol Hill since returning to power nearly 16 months ago, but the bipartisan condemnations of this idea — up to and including Trump’s own former vice president, who called the fund “deeply offensive” and “totally unacceptable” — were unlike anything he’s seen since the Jan. 6, 2021, riot itself.
The president was left with a choice: Keep fighting an uphill battle for a brazenly corrupt scheme or back down from a fight he was likely to lose. He apparently went with the latter.
A senior White House official told MS NOW’s Jacqueline Alemany on Monday that the White House is dropping its plan for the fund.
Axios was first to report on the White House’s intentions.
The developments come three days after a federal judge blocked the gambit from advancing, as part of a preliminary move.
By any fair measure, the fund never should’ve existed in the first place, and many legal scholars characterized it as the single most corrupt step ever taken by an American president. The initiative began with an outlandish $10 billion lawsuit Trump filed against his own administration over the leak of his tax returns during his first term, which he dropped as part of an agreement to create a $1.776 billion fund that would compensate “victims” of the Biden administration, notwithstanding the inconvenient fact that Republicans have never been able to identify any actual, legitimate victims.
There are some key questions that have not yet been answered. For example, the day after the administration announced the fund, Blanche unveiled an addendum of sorts, which said the Internal Revenue Service would no longer scrutinize past or present alleged tax irregularities surrounding the president, his family, and his controversial businesses. The development, among other things, freed Trump from having to worry about a potential $100 million penalty.