Trump Admin Scraps $1.8B Fund but Keeps IRS Protection for Trump Family and Businesses

The Trump administration is backing away from a proposed $1.8 billion “anti-weaponization” fund, but according to Deputy Attorney General Todd Blanche, that does not change a separate agreement that limits the IRS from pursuing tax claims against Donald Trump, his family, or his businesses. Bloomberg reported that Blanche confirmed the fund would no longer be pursued, while The Independent reported that the underlying tax-related arrangement remains in place.

The dispute centers on a broader understanding tied to Trump’s legal and financial exposure. Under the terms described by The Independent, the IRS is “forever barred and precluded” from pursuing claims against Trump, his family or his businesses. That language suggests the tax amnesty provision is separate from the abandoned fund, and Blanche’s comments indicate the administration is not reopening that part of the deal even as the fund itself is being dropped.

The abandoned fund had been described by critics as a kind of slush fund or “weaponization” fund, intended to respond to what Trump allies have long portrayed as politically motivated government actions. Bloomberg’s reporting on June 2 said Blanche confirmed the administration would not move forward with the $1.8 billion proposal, and related Bloomberg audio updates said the fund had been scrapped or dropped.

The episode matters because it touches two politically sensitive issues at once: how Trump-era grievances are being handled inside the Justice Department, and whether the federal government is effectively giving Trump and his businesses a durable shield from future tax enforcement. For Trump’s supporters, the decision to drop the fund may be seen as a retreat from an internal political project; for critics, the unchanged tax arrangement raises questions about fairness and accountability.

The reporting also comes as the Justice Department faces broader scrutiny over personnel and policy changes. Bloomberg’s audio updates on the same day noted that Pulte was named acting director of national intelligence, underscoring that the Blanche comments were part of a wider set of administration personnel and policy shifts.

For now, the key takeaway is that the administration appears to be abandoning the fund while leaving the tax amnesty agreement intact. What happens next will likely depend on whether more details emerge about how the underlying deal was structured and whether lawmakers or watchdogs seek further scrutiny of its terms.