Trump’s $1.8 Billion Anti-Weaponization Fund Sparks Bipartisan Tax Proposal

The Department of Justice announced a $1.8 billion “anti-weaponization” fund to compensate individuals who claim they were harmed by actions taken against former President Donald Trump and his allies. In response, Rep. Mike Thompson (D-CA) introduced a bill taxing any payout at 100 % and adding a 50 % penalty for evasion. Senators Chuck Schumer (D-NY) and Ron Wyden (D-OR) filed a companion measure in the Senate.

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Trump sued the IRS for $10 billion over a 2019 tax-return leak, then dropped the case after the DOJ offered the $1.8 billion settlement. Critics note the five-member payout committee is appointed by Acting Attorney General Todd Blanche, a former Trump defense lawyer, raising conflict-of-interest concerns.

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Donald Trump – former president; Mike Thompson – House Ways and Means subcommittee ranking member; Ron Wyden – Senate Democrat; Brian Fitzpatrick – Republican Representative; Thom Tillis – Republican Senator; Todd Blanche – Acting Attorney General.

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Fund: $1.8 billion; Tax: 100 % of payouts plus a 50 % evasion penalty; Committee: five members appointed by the acting attorney general.

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Senator Wyden called the fund “staggeringly corrupt” and urged Congress to block taxpayer money from “right-wing violence and handouts to insurrectionists.” Representative Thompson said the tax bill would prevent a sitting president from profiting from lawsuits. Representative Fitzpatrick warned that a $1.8 billion DOJ-controlled fund “cannot be created, defined, and distributed in the shadows,” demanding full disclosure. Senator Tillis called the idea of compensating Capitol Police attackers “absurd.”

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Democratic critics label the fund “the most corrupt thing I’ve ever seen from an American president,” citing the appointment process and the risk of payments to Jan 6 participants. Republican voices also demand safeguards to block payouts to rioters, emphasizing the need for transparency and oversight.

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Democrats say the fund is intended to reward Jan 6 supporters; Senate Republicans are reportedly drafting restrictions to prevent such payouts. No public eligibility criteria have been released, and the committee’s selection process remains opaque, leaving a clear oversight gap.

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• “staggeringly corrupt even by Trump’s bottom-dwelling standards.” — Ron Wyden, U.S. Senator (D-OR)

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• “ "My legislation ensures if a sitting president sues our government while in office," added Thompson, "they get taxed 100% on any money paid through a trial or settlement.” — Mike Thompson, Representative (D-CA)

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• “a nearly $1.8 billion DOJ-controlled fund cannot be created, defined, and distributed in the shadows,” — Brian Fitzpatrick, Representative (R-PA)

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• “Imagine that—a fund that is set up to compensate people who assaulted Capitol Police officers,” — Thom Tillis, Senator (R-NC)

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The tax bills move to committee hearings within weeks. Lawmakers are expected to propose amendments that add disclosure requirements or bar payments to Jan 6 participants. Oversight hearings on the committee’s composition and eligibility rules are slated for the coming months, shaping the fund’s ultimate fate.

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