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

Senate Democrats are preparing a series of procedural maneuvers this week to block a nearly $1.8 billion compensation fund created through a settlement between the Trump administration and the Internal Revenue Service. The effort, led by Minority Leader Chuck Schumer, comes as the fund has already drawn resistance from some Senate Republicans and prompted a temporary court order halting any payouts.

Schumer outlined the strategy in a letter to Democratic colleagues, promising to attach amendments during budget reconciliation, force floor votes, and challenge the fund through appropriations measures. He described the pot of money as a slush fund that should be eliminated before any disbursements occur. Three Democratic senators, Adam Schiff of California, Mark Kelly of Arizona and Elissa Slotkin of Michigan, introduced separate legislation called the Drain the Slush Fund Act that would prohibit payments tied to lawsuits brought by the president or vice president and apply the restriction retroactively to January 20, 2025.

The fund stems from an out-of-court agreement in Trump v. the Internal Revenue Service. It is intended to compensate individuals who claim they were targeted by prior government actions, a category that critics say could include some of those convicted in connection with the January 6 Capitol attack. Democrats argue the arrangement effectively gives the administration wide latitude to direct taxpayer resources toward political allies without clear congressional oversight. Public polling has shown opposition to the fund across party lines.

The dispute has already disrupted other legislative business. Senate Republicans left town before Memorial Day without completing a planned reconciliation package that would have directed substantial new funding to immigration enforcement. Several GOP senators have privately pressed the administration for tighter limits on the fund, according to people familiar with the discussions, though President Trump has shown little interest in altering the settlement. Senate Majority Leader John Thune has acknowledged the political difficulty the issue has created for his members.

A federal judge in Virginia issued a temporary block on the fund after a bipartisan group of judges filed suit in Florida, arguing the underlying settlement reflected collusion rather than a genuine resolution of claims. The case remains active, adding another layer of uncertainty to the administration’s plans.

Democrats are unlikely to muster the votes needed to eliminate the fund outright in the current Senate. Their strategy instead centers on compelling Republicans to take recorded votes that could be used in the 2026 midterms, when narrow margins in both chambers are expected to decide control. Schumer has indicated Democrats will keep the issue alive through whatever legislative vehicles Republicans choose, whether reconciliation or appropriations.

The episode highlights the friction between the White House and Senate Republicans over how far the administration can stretch executive authority to address grievances from Trump’s first term and its legal aftermath. With control of Congress still in play two years from now, both parties are treating the fund as a test of institutional guardrails that could shape the remainder of the session.