The embarrassing defeats that show Trump is losing control

Donald Trump’s retreat from a $1.8 billion “slush fund” following extraordinary backlash from his own party shows his veneer of invincibility is wearing off, experts have said.

The US President has dropped – at least temporarily – his plan for a £1.776 billion “anti-weaponisation” fund that would compensate political allies he claims have been targeted by the justice system under previous administrations.

Last week the United States District Court Judge in the Eastern District of Virginia halted the fund’s creation and any payouts for at least two weeks.

The Department of Justice, which Trump has brought under his effective control, announced in a post on X on Monday that it would abide by a ruling, but that it “disagrees strongly” with the decision.

The Trump administration has signalled to congressional Republicans it might drop the proposed fund – which opponents have called a “slush fund”, sources familiar with the matter told CNN, following enormous backlash from the party.

Republican senator Rick Scott of Florida said on Monday that a White House official told him the fund would be “dropped”. He did not clarify if that would be temporary or permanent.

The decision came after Trump held a meeting with Speaker of the House, Mike Johnson. Trump appeared to admit defeat in an interview, saying: “If a court doesn’t allow it, and right now a court has it held up, what can you do?”

It is the latest in series of setbacks for President Trump as he faces crunch midterm elections in just five months’ time, which could see the Republicans lose control of Congress.

Dr Mark Shanahan, Associate Professor of Political Engagement at the University of Surrey, told The i Paper: “It’s becoming ever more apparent that his aura of invincibility was exactly that – an aura, a chimera, a mirage.”

He noted that the Trump administration had lost more than 150 court battles on issues ranging from tariffs to immigration since the President’s return to office in January 2025.

“Trump plays fast and loose with the law – but actually loses more than he wins,” Dr Shanahan said.

The £1.776 billion fund was not only met with opposition from the courts and congressional Democrats, but also within the GOP’s own ranks. Republicans voiced concern that the money could be paid out to rioters who stormed the Capitol building on 6 January 2021, with some calling it “utterly stupid” and “morally wrong”.

Trump’s former Vice President Mike Pence, who was among the targets of the rioters, told CBS: “The idea of creating a fund that could compensate people who assaulted police officers and vandalised the Capitol that day is totally unacceptable.”

Republican Senate Majority Leader John Thune told reporters: “I do think the best way to handle it is if the administration decides to shut it down themselves.”

He added: “The way the statement is worded, I think it’s clear that they’re not proceeding with the fund, but obviously whether that’s sufficient to satisfy a number of our members is something we’re still sorting through.”

The court ruling comes at a time Trump’s administration is dealing with a number of setbacks both domestically and abroad. Musicians are dropping out of Freedom 250, a series of concerts to celebrate the US’s 250^th birthday, over the event’s politicisation by the White House.

Meanwhile Trump’s legacy plans also took a hit when a federal judge ordered that his name be removed from the Kennedy Center for the Performing Arts within 14 days. District Court Judge Christopher Cooper ruled: “Congress gave the Kennedy Center its name, and only Congress can change it.”

“The legislation explicitly states that it cannot be officially named for anyone else or bear any other formal name without a formal Act of Congress,” Ian Scott, Professor of American Film and History at The University of Manchester, told The i Paper.

“There is no legal challenge to this from the White House, merely rants about it not being fair. That judgment, unless a severe executive takeover of all political and judicial functions takes place, is not going to be revoked.”

These roadblocks also come as Trump faces growing global economic consequences thanks to his war against Iran, which has resulted in the continued closure of the Strait of Hormuz by Iranian forces.

As negotiations between the US and Iran continue, the vital chokepoint remains blocked to most international shipping – threatening severe shortages of oil, gas and fertiliser around the world.

Dr Shanahan said: “Now the world sees that Trump’s aspirations far outstretched his ability and he is stuck in a war he can’t get out of that is hitting Americans hard in the wallet.

“Americans judge their politicians on the price of gas and the weekly shop. Trump’s war of choice has succeeded only in delivering an economic nightmare.”

This slew of setbacks for Trump risks placing the Republicans on weaker footing heading into November’s midterm elections, which will determine the control of Congress for the next two years.

YouGov’s poll tracker places the Democrats ahead on 45.9 per cent to the Republicans’ 41.5 per cent. The Democrats are also seen as competitive in several vital Senate seats currently held by the Republicans, including Maine, North Carolina and Texas.

Were the Republicans to lose control of both Houses of Congress, it would severely hamper the White House’s ability to push through its agenda on a constitutional level.

But Professor Scott said: “The issue about losing control of the Hill won’t stop initiatives, executive orders and the like from continuing to pile forth, and indeed the danger with losing Congress is that Trump may become even more reckless.

“Cuba, Greenland, the Falklands, the list of potential targets goes on in foreign policy terms. More immigration crackdowns, more and bolder tariffs, blocked by the courts or not. Make no mistake, there is a base out there ready to be galvanised by a narrative from Trump that says ‘they’re’ taking away his power and authority.”

He added: “The simple truth is that Trump simply does not operate in the political arena of yore; he operates in one that is manufactured upon rumour, myth, innuendo and intimidation and if he goes a full second term, that legacy will poison American public life for decades to come.”