Democrats Target $1.8 Billion DOJ Fund as GOP Stalls Border Bill

A $1.8 billion Justice Department fund created through a May 2026 settlement has blocked Senate passage of a $72 billion immigration enforcement package and drawn coordinated Democratic opposition. The fund emerged from Trump v. IRS, in which the president dropped a $10 billion lawsuit over leaked tax returns in exchange for a compensation mechanism for individuals alleging prior government targeting. Senate Democrats now seek recorded votes to eliminate it before any disbursements occur.

Minority Leader Chuck Schumer wrote colleagues that Democrats will attach amendments during reconciliation, force floor consideration, or challenge the measure through appropriations. Sens. Adam Schiff, Mark Kelly and Elissa Slotkin introduced the Drain the Slush Fund Act to bar payments tied to suits by the president or vice president, retroactive to January 2025. A federal judge in Virginia issued a temporary block last week; a Miami judge later reopened related proceedings after 35 judges filed an amicus brief.

Senate Republicans remain divided. A closed-door briefing with Acting Attorney General Todd Blanche produced demands for eligibility limits, commission changes, or judicial review. Majority Leader John Thune said the issue complicates other priorities. Some senators expressed concern that January 6 defendants could qualify, though Blanche privately indicated violent offenders would be excluded. The impasse has already forced postponement of the ICE and Customs and Border Protection funding measure.

Polling cited by multiple outlets shows majority opposition across parties. The fund's five-member commission, appointed largely by Blanche with final removal authority resting with the president, has drawn scrutiny over its structure. No payouts have occurred. The White House has signaled willingness for further talks without committing to specific restrictions.