Trump Still Supports $1.8 Billion Payout Fund Despite Acting Attorney General’s Reversal amid Bipartisan Opposition

Acting Attorney General Todd Blanche declared on Tuesday that the administration was “not moving forward with the fund, period,” following a plan that had drawn bipartisan backlash. The statement marked a significant reversal in federal policy regarding the proposed $1.8 billion government compensation fund.

Administration Position Shifts

The Trump administration had previously indicated support for the $1.8 billion payout fund, which was designed to provide compensation to a specific group of claimants. However, according to Blanche’s remarks on Tuesday, the administration is now halting all progress on the initiative. “We are not moving forward with the fund, period,” Blanche said, emphasizing the finality of the decision.

Despite this reversal, President Trump continues to express support for the underlying concept of the fund. The president’s position remains at odds with the acting attorney general’s public statement, creating an apparent split within the administration on the matter.

Bipartisan Congressional Criticism

The fund plan had encountered sharp opposition from lawmakers on both sides of the aisle. Members of Congress from both parties raised concerns about the scope, cost, and legal basis of the proposed payout structure. The bipartisan backlash intensified in recent weeks, with several committees signaling plans to investigate the fund’s authorization and funding mechanism.

Critics argued that the $1.8 billion fund lacked sufficient oversight and could set a precedent for future executive branch compensation programs without congressional approval. The opposition ultimately contributed to the administration’s decision to halt the fund’s implementation, as confirmed by Blanche.

Federal Payout Reversal Details

The reversal represents a notable shift in federal payout policy under the current administration. The $1.8 billion figure had been publicly discussed as the total allocation for the fund, though specific eligibility criteria and distribution methods were never fully detailed by the Department of Justice or other involved agencies.

Acting Attorney General Blanche’s statement on Tuesday serves as the first official confirmation that the fund will not proceed. No timeline for potential alternative compensation mechanisms has been provided, and the administration has not indicated whether it will pursue a revised version of the fund in the future.

Trump Administration Policy Implications

The situation highlights ongoing tensions within the Trump administration over compensation-related policies. While the president remains publicly supportive of the fund’s goals, the acting attorney general’s announcement suggests that practical and political considerations have forced a pause.

The White House has not issued a separate statement clarifying whether Trump’s continued support will lead to renewed efforts to revive the fund through different legislative or executive channels. Congressional leaders have indicated they will monitor the situation closely.

Context

This reversal echoes previous instances where federal compensation proposals faced bipartisan opposition and were subsequently withdrawn. In 2023, a proposed $500 million government compensation fund for a separate group of claimants was also abandoned after similar criticism from both Democratic and Republican lawmakers. That plan, like the current one, was criticized for lacking clear congressional authorization and for potentially bypassing standard appropriations processes.