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Trump’s $1.77 billion ‘slush fund’ may be on the way out after GOP objections

2 June 2026 at 00:46
U.S. President Donald Trump speaks from the Cross Hall of the White House on April 1, 2026 in Washington, D.C.  (Photo by Alex Brandon-Pool/Getty Images)

U.S. President Donald Trump speaks from the Cross Hall of the White House on April 1, 2026 in Washington, D.C.  (Photo by Alex Brandon-Pool/Getty Images)

WASHINGTON — President Donald Trump’s nearly $1.8 billion “anti-weaponization” fund appeared to be on shaky ground Monday as he continued to face opposition from his own party.

Trump had not yet made a public announcement by late afternoon, but several media outlets reported the president planned to possibly drop the fund to clear the way for Senate Republicans to advance a $72 billion immigration enforcement funding package. Politico reported White House officials communicated the decision Monday to Republicans on Capitol Hill, according to two unnamed sources.

Trump’s fund has sparked resistance from both parties as concerns mounted that Jan. 6, 2021, riot defendants who assaulted police officers could conceivably get reparations by claiming the law was “weaponized” against them for political purposes. 

A slew of lawsuits challenging what opponents called a “slush fund” followed, including from police officers who defended the Capitol that day.

Shortly after the reports circulated that Trump might shelve the idea, the Department of Justice defended the fund on social media but said it would comply with a court order issued Friday temporarily barring the government from any further action on the fund. The order did not address the merits of a suit filed against the fund.

“The Department of Justice disagrees strongly with the decision on the Anti-Weaponization Fund put forth by the United States District Court Judge in the Eastern District of Virginia, wherein the Court stated that, under no circumstances, may the Department of Justice proceed with the Anti-Weaponization Fund recently established in order to make up for the tremendous abuse, harm, and hate unfairly shown to so many people. This Fund was open to anybody who was so weaponized, targeted, or persecuted, whether they were Democrat, Republican, Conservative, Independent, or otherwise. The Department will abide by the Court’s ruling,” according to the department’s post on X.

The DOJ and the White House directed States Newsroom to the post when asked if the president would scrap the fund altogether.

Several Republicans vehemently opposed the fund, including retiring Sen. Thom Tillis, R-N.C., who called the fund “stupid on stilts.”

Senate Majority Leader John Thune, R-S.D., abandoned plans for a floor vote on the immigration bill ahead of the Memorial Day recess as members threatened to defect unless the budget reconciliation package also included language to apply guardrails on the massive “anti-weaponization” pot of money.

Senate Minority Leader Chuck Schumer, D-N.Y., said Monday that even if Trump says he will drop the fund, “a promise from Trump is worthless.”

“If Trump and Republicans are truly abandoning this corrupt scheme, they should have zero problem banning it in law,” Schumer said on the floor. “This week, Senate Democrats will push legislation to ban this slush fund and ensure no president can ever do this again. Trump’s word is nowhere near enough.”

The Department of Justice announced the $1.776 billion fund on May 18 as a condition for Trump dropping his $10 billion lawsuit against the IRS. A day later, the DOJ issued another order declaring Trump and his family would be forever immune from government inquiries, including tax audits, as part of Trump’s voluntary dismissal of the suit.

Trump administration investigation of Fed Chair Jerome Powell scrapped

24 April 2026 at 15:49
U.S. Sen. Thom Tillis, R-N.C., in an elevator at the U.S. Capitol on June 30, 2025 in Washington, D.C. Tillis had vowed to oppose President Donald Trump’s pick to replace Fed Chair Jerome Powell unless the administration dropped its Fed investigation. (Photo by Alex Wong/Getty Images)

U.S. Sen. Thom Tillis, R-N.C., in an elevator at the U.S. Capitol on June 30, 2025 in Washington, D.C. Tillis had vowed to oppose President Donald Trump’s pick to replace Fed Chair Jerome Powell unless the administration dropped its Fed investigation. (Photo by Alex Wong/Getty Images)

WASHINGTON — The Department of Justice dropped its investigation Friday of the Federal Reserve and Chair Jerome Powell over building renovation costs, a move that could open the door for new Fed leadership next month — and signaled a victory for North Carolina Sen. Thom Tillis.

U.S. Attorney Jeanine Pirro said her office closed the probe after a request to the Fed’s inspector general to examine the cost overruns.

“The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas,” Pirro wrote on X just after 10 a.m. Eastern.

Pirro said she “will not hesitate to restart a criminal investigation should the facts warrant doing so.”

Powell, whose term expires in May, has been the target of repeated public criticism from President Donald Trump, who threatened to fire the central bank’s chair if he did not lower interest rates.

The Trump administration’s criminal inquiry into Powell for a $2.5 billion renovation project at the Fed’s offices has been eyed with suspicion, including from his own party.

Tillis, R-N.C., said he would not vote for Trump’s pick to replace Powell, former Fed Board Governor Kevin Warsh, unless the administration dropped its “bogus” investigation.

A favorable vote by Tillis on the closely divided Senate Committee on Banking, Housing and Urban Affairs is necessary to advance Warsh’s nomination, as all panel Democrats oppose him.

Tillis’s office did not immediately respond for comment.

A federal judge last month blocked the administration’s subpoenas to probe the Fed and Powell.

The Department of Justice declined to comment and referred States Newsroom to Pirro’s social media post.

A White House official reaffirmed Pirro’s announcement Friday.

“American taxpayers deserve answers about the Federal Reserve’s fiscal mismanagement, and the Office of the Inspector General’s more powerful authorities best position it to get to the bottom of the matter. The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making,” White House spokesperson Kush Desai told States Newsroom in a statement.

Sen. Elizabeth Warren, D-Mass., issued a statement dismissing the DOJ’s announcement as “an attempt to clear the path for Senate Republicans to install President Trump’s sock puppet Kevin Warsh as Fed Chair.”

“Let’s be clear what the Justice Department announced today: they threatened to restart the bogus criminal investigation into Fed Chair Powell at any time while failing to drop their ridiculous criminal probe against Governor (Lisa) Cook. Anyone who believes Donald Trump’s corrupt scheme to take over the Fed is over is fooling themselves,” she wrote on X and Bluesky late Friday morning, referring to Trump’s abrupt August firing of Feb Board Governor Cook over alleged financial fraud.

Cook successfully challenged her firing in two lower courts. The U.S. Supreme Court is reviewing whether Trump legally dismissed Cook. 

Trump, who routinely posts about news of the day on his own social media platform Truth Social, had not commented on the announcement as of 12:30 p.m. Eastern.

During an unrelated Oval Office event Thursday, Trump sidestepped a question about what he hoped to learn from Pirro’s investigation into Powell and the Fed.

Instead, Trump responded by saying he could have completed the Fed’s Washington, D.C., headquarters renovation for $25 million and “had money left over.”

“On top of that, he’s been terrible on interest rates because he should have lowered interest rates. That’s why call him Jerome ‘too late.’ ‘Too late’ — that’s his nickname — Jerome ‘too late’ Powell. He likes me a lot,” Trump said.

Jennifer Shutt contributed to this report.

 

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