Ahmed Kamel – Egypt Daily News
The administration of U.S. President Donald Trump has unveiled a controversial $1.776 billion compensation fund aimed at supporters of the president who claim they were unfairly targeted by previous federal investigations and prosecutions, triggering accusations of corruption and abuse of power from Democrats and watchdog groups.
The unprecedented initiative, announced Monday by the United States Department of Justice, establishes what officials are calling an “anti-weaponization” fund, a symbolic reference to the year 1776 that the administration says is intended to compensate Americans harmed by politically motivated government actions.
The move immediately ignited a political firestorm across Washington, with critics warning that the fund effectively allows Trump to use taxpayer money to reward political allies and supporters while consolidating unprecedented control over federal institutions.
The fund’s creation coincided with Trump’s decision to drop a massive $10 billion lawsuit against the Internal Revenue Service and the Treasury Department over the leak of his tax records and those of the Trump Organization.
Although Trump himself will not receive financial compensation under the settlement, the Justice Department said he will receive a formal apology. According to the department, the new compensation mechanism will process claims through December 15, 2028, just weeks before the scheduled end of Trump’s second presidential term.
The fund will reportedly be overseen by a five-member commission whose members have not yet been announced. However, Trump will retain the authority to dismiss any of the commissioners, raising additional concerns among critics about political influence over the process.
Acting Attorney General Todd Blanche, who previously served on Trump’s personal legal defense team, defended the initiative as a necessary response to what the administration describes as years of political “lawfare.”
“The machinery of government should never be weaponized against any American,” Blanche said in a statement, adding that the administration seeks to “make right the wrongs that were previously done.”
The Justice Department insisted there would be “no partisan requirements” for filing claims, though Trump has repeatedly argued that investigations targeting his allies, from the Russia probe to prosecutions linked to the January 6 Capitol riot were politically motivated.
The broad language surrounding eligibility has fueled speculation that thousands of Trump supporters and former administration figures could seek compensation. The legal battle that led to the settlement stemmed from a lawsuit Trump filed in January alongside his sons, Donald Trump Jr. and Eric Trump, accusing the IRS of failing to protect confidential tax information.
The suit focused on the leak carried out by former IRS contractor Charles Littlejohn, who was sentenced to five years in prison for disclosing Trump’s tax records along with those of thousands of wealthy Americans. Trump filed the lawsuit in his capacity as a private citizen rather than as president. A spokesperson for his legal team claimed the settlement was designed “for the benefit of the American people.”
Democrats reacted furiously.
Senate Minority Leader Chuck Schumer described the fund as “depraved,” accusing Trump of using federal power to financially support loyalists.
“Trump is shaking hands with himself in order to fund his insurrectionist army to the tune of billions,” Schumer wrote on X.
Advocacy organization Public Citizen also condemned the plan, calling it a “slush fund” for Trump allies and warning it effectively creates a taxpayer-funded January 6 compensation program. The controversy deepened after nearly 100 House Democrats filed a legal brief accusing Trump of “blatant self-dealing” shortly after his legal team withdrew the IRS case.
The lawmakers argued that the settlement arrangement deserved judicial scrutiny because it involved a sitting president negotiating financially and politically advantageous terms with agencies under his own executive authority.
Federal Judge Kathleen Williams had already expressed skepticism earlier this year over whether Trump’s lawsuit constituted a legitimate legal dispute appropriate for federal court.
The new compensation initiative follows earlier settlements involving Trump allies.
In March, former national security adviser Michael Flynn reached a settlement with the Justice Department after suing the government for $50 million over FBI investigations tied to the early days of Trump’s first administration. Flynn ultimately received more than $1 million.
In April, former Trump campaign adviser Carter Page also settled litigation against the FBI and Justice Department over surveillance related to his contacts with Russian figures during the 2016 election cycle.
The creation of the fund is expected to trigger immediate legal challenges from Democratic lawmakers and ethics groups, potentially setting up another major constitutional battle over executive power, political retaliation, and the limits of presidential authority in Trump’s second term.
