Trump's controversial victim fund scrapped after massive criticism

The U.S. government has scrapped plans to create a controversial fund intended to compensate alleged victims of injustice, following significant criticism from various quarters.

Acting Attorney General Todd Blanche announced before the U.S. Congress that the administration would not proceed with the fund. The initiative had drawn sharp condemnation, even from within Donald Trump's own party, with critics labeling it "hush money" for Trump loyalists and alleging corruption. This pressure appears to have led the U.S. government to abandon the plan.

Previously, the U.S. Department of Justice indicated that the fund would receive approximately $1.8 billion (about 1.5 billion euros). Its stated purpose was to compensate individuals who claimed to be victims of politically or ideologically motivated government actions. However, critics expressed strong concerns that the fund could be misused to reward Trump supporters who participated in the January 6, 2021, attack on the Capitol.

These individuals had been charged during Joe Biden's administration, although Trump issued pardons for many of them after taking office in 2025. The violent storming of the Capitol occurred as lawmakers were set to officially confirm the election victory of Biden, Trump's opponent.

The fund originated from a settlement involving Trump himself. In January, Trump, as a private citizen, sued the government, seeking $1 billion in compensation. His lawsuit accused an employee of the IRS (Internal Revenue Service) of unlawfully accessing tax data of the Trump Organization during Trump's first term (2017-2021) and leaking it to "left-leaning media." The IRS is part of the U.S. Treasury Department, both of which were controlled by Trump's administration. The parties settled the lawsuit, with the IRS agreeing not to conduct post-filing audits of Trump's tax returns, an unusual concession. A federal court in Virginia had recently placed a temporary injunction on the fund's establishment, aiming to prevent irreversible disbursement of funds until the case is resolved.