U.S. Senate Majority Leader John Thune speaks during a press conference at the U.S. Capitol on Tuesday, June 2, 2026. (Photo by Jennifer Shutt/States Newsroom)
WASHINGTON – The Trump administration has scrapped plans to apply nearly $1.8 billion in taxpayer money to pay people who believe they were wrongly prosecuted by the Justice Department – a proposal that halted work on legislation to fund immigration and deportation activities.
Acting Attorney General Todd Blanche testified before a House committee on Tuesday that the DOJ would not move forward with those plans, shortly after Senate Majority Leader John Thune, a South Dakota Republican, said the administration had changed course.
That decision could clear the way for the Senate to debate a roughly $70 billion package to fund immigration and deportation for the remainder of President Donald Trump’s term.
“I think his statements will be very clear and clear and provide the certainty that hopefully all of our members and also the members of the House of Representatives need so that we can move forward with the reconciliation bill,” Thune said, referring to Blanche. “But I can’t guarantee that it will still happen.”
Blanche confirmed Thune’s statements when he testified before a House Appropriations subcommittee this afternoon.
“We are not moving forward with the fund, period,” Blanche said when pressed by the subcommittee’s top Democrat, Rep. Grace Meng of New York.
“You and Assistant Attorney General Woodward have signed previous documents regarding the settlement and this fund. Would you both now sign and release documents reversing the DOJ’s position regarding the fund?” Meng asked.
“We’re not making any progress with the fund. I’m not sure what it means to undo documents. There’s nothing that can be undone,” Blanche replied.
The DOJ posted on social media This week it plans to stick to a preliminary court decision That blocked the distribution of funds, but Republican lawmakers said it wasn’t enough to end the impasse it created.
The Justice Department announced the creation of the fund last month as part of a legal settlement between Trump and the IRS over leaked copies of his tax returns during Trump’s first term. The settlement included provisions that precluded future IRS investigations into Trump and his family.
Senate Republicans agree
Thune said Republican senators had a “pretty intense conversation” during a closed-door lunch about the DOJ fund and whether they should move forward with their immigration and deportation package.
North Dakota Sen. John Hoeven said after the meeting that it would be up to GOP leaders to decide whether there were enough votes to advance the immigration package.
“I think the next step is for our whip team to find out where everyone stands based on the government’s indications that they are not going to move forward with the fund,” Hoeven said.
Louisiana Sen. John Kennedy said there is a “chance” Republicans could begin a marathon vote on amendments to immigration law as early as Wednesday if Blanche’s testimony allays the DOJ Fund’s concerns.
However, Montana Senator Steve Daines said he thinks it is “unlikely” that the trial will begin this week.
North Carolina Republican Senator Thom Tillis said earlier in the day before lunch that he would not accept tax money for people who attacked the Capitol on January 6th.
“To make amends for someone who assaulted a police officer and pleaded guilty. I mean, man, I’ve seen some crazy stuff, but this is right up there with crazy,” he said.
Utah Republican Sen. John Curtis said he needed to know “whether it is dead or nearly dead.”
Oklahoma Republican Sen. James Lankford said he is demanding clarification from the White House about the settlement fund in lithe of the court ruling.
He added that Republicans are waiting to see whether “the lawsuit overrides both the settlement fund and the audits.”
“We need clarification on what it is and what it isn’t, because the White House has already said, ‘We agree, we don’t like it, but we agree with the courts,'” Lankford said. “What does that mean?”
Change in the prohibition fund
Democrats have it too criticized Trump and members of his administration have spoken out about the fund and vowed to block it through legislation.
Senate Minority Leader Chuck Schumer, D-N.Y., said during an afternoon news conference that promises from Trump and administration officials were “worthless.”
“Trump sued his own government, let his own Justice Department settle the case, and is now trying to use taxpayer money to pay off his MAGA allies, billionaire friends and cop-beating insurrectionists,” Schumer said.
“And to be clear: Trump did not kill this dark money fund,” he added. “He has not revoked the special tax immunity he granted himself and his family. He has not stopped corruption. He has encountered a temporary hurdle. That is all.”
Schumer said the first amendment he would introduce during debate on Republican immigration and deportation legislation would “permanently ban Trump’s slush fund and strip his family of their freedom to commit tax fraud forever.”
Ashley Murray contributed to this report.
