Chuck Schumer lays out Democrats’ plan to fight Trump’s ‘anti-weaponization’ fund in the Senate

Senate Democrats Plan Amendments to Block $1.8 Billion Fund Created After Trump IRS Settlement

Senate Minority Leader Chuck Schumer said Monday that Democrats intend to offer amendments to eliminate a $1.8 billion fund established by the Justice Department following a settlement with President Donald Trump. The effort would require Republicans to vote on preserving the compensation program during consideration of spending legislation.

Schumer stated in a letter to colleagues that Democrats would seek to prevent any disbursements from the fund. He noted that Republicans have indicated plans to use budget reconciliation procedures, which would permit unlimited amendments. Schumer wrote that Democrats would propose measures to terminate the fund if reconciliation is used, would raise the issue on the Senate floor if it is not addressed directly, and would oppose it during appropriations debates as well.

Passage of such amendments is considered unlikely given the Senate’s current composition. Democrats could, however, compel recorded votes that might be used in campaign messaging ahead of midterm elections. Three Democratic senators introduced separate legislation Monday to repeal the fund. Sens. Adam Schiff of California, Mark Kelly of Arizona, and Elissa Slotkin of Michigan sponsored the measure, which would prohibit payments to individuals who have sued the federal government, including former Jan. 6 defendants, and would bar settlements or compensation involving suits filed by the president or vice president. The bill would apply retroactively to Jan. 20, 2025.

The fund originated from a Justice Department settlement resolving Trump’s $10 billion lawsuit against the IRS concerning the disclosure of his tax returns. Trump stated publicly that he waived any personal claim to enable creation of the compensation program for others alleging political targeting or lawfare. The department described the fund as addressing claims of improper government actions against private parties.

A federal judge in Virginia issued a temporary injunction blocking the fund last Friday after a lawsuit filed last month by a former Jan. 6 prosecutor and additional plaintiffs. A federal judge in Miami, who had previously handled related proceedings, reopened the case last week and requested further briefing following an amicus filing signed by 35 judges that characterized aspects of the settlement as a fraud on the court.

The fund’s establishment affected Republican efforts to advance legislation funding Immigration and Customs Enforcement and Customs and Border Protection for the remainder of Trump’s term. After a closed-door briefing last month between acting Attorney General Todd Blanche and Senate Republicans, several Republicans indicated that adjustments to the fund’s scope and administration would be necessary to secure sufficient support for passage by simple majority.

Schumer’s letter stated that modifications short of full repeal would not address Democratic objections. He indicated Democrats would continue to seek recorded votes regardless of any administrative changes announced by the Justice Department. Republicans have not yet detailed proposed revisions to the fund’s eligibility criteria or oversight mechanisms.