Trump Administration Announces $1.7 Billion Fund For Supporters Who Claim Biden-Era Persecution

(MENAFN- Live Mint) The administration of US President Donald Trump has announced the creation of a $1.7 billion compensation fund for allies who claim they were unfairly targeted by the Justice Department during the administration of former President Joe Biden.

The Justice Department revealed the“Anti-Weaponization Fund” on Monday (May 18) as part of an agreement tied to Trump's decision to drop his lawsuit against the Internal Revenue Service (IRS) over the leak of his confidential tax records.

The move has already triggered intense political backlash.

What is the 'Anti-Weaponization Fund'?

According to the Justice Department, the new fund is intended to compensate people who believe they were wrongly investigated or prosecuted for political reasons during the Biden administration.

Acting Attorney General Todd Blanche defended the initiative in a public statement.

Blanche said the fund would provide:“A lawful process for victims of lawfare and weaponization to be heard and seek redress.”

The administration has not yet clarified:

-Who will qualify for compensation

-How claims will be reviewed

-How much individual claimants could receive

Trump's legal team simultaneously filed paperwork in federal court in Florida requesting dismissal of the president's IRS lawsuit.

Why did Trump sue the IRS?

Trump filed the lawsuit earlier this year after confidential tax records connected to him and the Trump Organization were leaked to media outlets.

The lawsuit claimed the leak caused:

-“Reputational and financial harm”

-Public embarrassment

-Damage to business reputation

-Harm to Trump's public image

Trump's sons, Donald Trump Jr. and Eric Trump, were also listed as plaintiffs.

The controversy stemmed from actions by former IRS contractor Charles Edward Littlejohn, who pleaded guilty to leaking confidential tax records involving Trump and other wealthy Americans.

Littlejohn worked for Booz Allen Hamilton and was sentenced in 2024 to five years in prison.

Why is the Fund controversial?

Critics say the compensation program could allow taxpayer money to be distributed to Trump allies under vague claims of political persecution.

Representative Jamie Raskin, the Democrat on the House Judiciary Committee, strongly condemned the plan.

“This case is nothing but a racket designed to take $1.7 billion of taxpayer dollars out of the Treasury and pour it into a huge slush fund for Trump at DOJ,” Raskin said.

He accused the administration of rewarding:“Insurrectionists, rioters, and white supremacists.”

A coalition of 93 lawmakers has already filed a legal brief signaling a possible court challenge against the settlement.

How does this relate to Trump's 'weaponization' claims?

Trump has repeatedly argued that the Justice Department under Biden was politically weaponized against him and his supporters.

He has pointed to several investigations and criminal cases, including those involving:

-The 2020 presidential election

-Classified documents at Mar-a-Lago

-January 6 Capitol riot investigations

Several Trump aides and supporters were also prosecuted.

Former Attorney General Merrick Garland repeatedly rejected accusations of political bias and maintained that Justice Department decisions were based on“facts, evidence and the law.”

Despite that, Trump's current Justice Department has aggressively pursued investigations tied to alleged political targeting of Trump and his allies.

Also Read | Trump moves to withdraw $10 billion IRS lawsuit linked to leaked tax records

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