US government confirms end of controversial compensation fund

The U.S. government has officially scrapped plans to create a controversial compensation fund, initially proposed by former President Donald Trump, intended for alleged victims of state injustice. The decision comes after widespread criticism and significant political pressure, including from within Trump's own party.

Acting Attorney General Todd Blanche confirmed to the U.S. Congress that the administration would not proceed with the fund. "We will not be pursuing the fund further," Blanche stated. Critics had vehemently opposed the initiative, with some labeling it as "hush money" for Trump loyalists and alleging corruption. The controversy had even led to delays in other budget votes in Congress as lawmakers sought to exert pressure on Trump.

The proposed fund was slated to allocate approximately $1.8 billion (around 1.5 billion euros) from the U.S. Justice Department. Its stated purpose was to compensate individuals who claimed to have suffered from politically or ideologically driven actions by the state. A significant concern among critics was the potential for taxpayer money to be used to reward supporters of Trump, particularly those involved in the January 6, 2021, Capitol riot who faced charges during Joe Biden's presidency.

The fund originated from a unique settlement where Trump, as a private citizen, had sued the state seeking billions in compensation. His lawsuit accused a former IRS employee of unlawfully accessing and leaking tax data of the Trump Organization to "left-leaning media" during Trump's first term. The settlement also included an unusual agreement for the IRS to forgo a retroactive review of the Trumps' tax returns. A federal court in Virginia had previously issued a temporary injunction to halt the fund's establishment, pending a full clarification of the case.

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We will not be pursuing the fund further.