Trump Administration Drops $1.8 Billion Fund but Maintains Tax Probe Immunity

The Trump administration has decided to abandon plans for a $1.8 billion fund intended to compensate victims of alleged government misconduct, while still providing immunity from tax-related investigations for the president and his family. Acting Attorney General Todd Blanche announced this decision during a congressional hearing on June 2, 2026. The fund was part of a deal reached with the IRS and Treasury Department in May, aimed at addressing leaks of Trump's tax information. The proposal faced criticism from Democrats, who labeled it a 'slush fund' for Trump's political allies, and some Republican senators who sought clarity on its status before agreeing to other legislative measures. Blanche confirmed that the fund would not move forward and defended the ongoing tax immunity provision as standard practice in IRS settlements. This provision has drawn criticism from lawmakers, including Representative Rosa DeLauro, who argued it grants significant financial immunity to Trump and his associates. The fund has also been challenged in court, with a federal judge temporarily blocking its implementation.