Trump ABANDONS $1.8 billion 'slush fund' in humiliating U-turn as his own party turns on him

By PHILLIP NIETO, US POLITICAL REPORTER Published: 21:49, 1 June 2026 | Updated: 21:59, 1 June 2026 Donald Trump will abandon his $1.8 billion taxpayer-funded 'slush fund' for compensating MAGA allies as the President faces mounting political and judicial blowback in Washington, DC. The fund was created as part of the settlement of Trump's $10 billion lawsuit against the Internal Revenue Service over the leaking of his 2019 tax return to the media. Lawmakers from both parties have criticized the President and labeled it a 'slush fund.'  It is now being killed after House Speaker Mike Johnson raised objections to the the White House fund during a private meeting with the President on Monday afternoon. 'It's dead for now,' one senior administration official told Axios. Republicans had opposed the fund over fears it would provide monetary compensation to January 6 Capitol rioters who assaulted police.  Senate Majority Leader John Thune is holding hostage a bill Trump wanted to fund immigration enforcement. The GOP leader said he would not advance the legislation until Republicans received assurances that the fund would not be used to pay the President's allies. 'This has become a distraction,' another administration official said. 'The president believes government was weaponized against people — it wasn't just him. But this isn't the time and vehicle for it.' A federal judge last Friday blocked the Justice Department from distributing the funds while a lawsuit challenging the arrangement plays out in a Virginia court. Following news of the fund's demise, the DOJ released a statement saying it will comply with the court order and halt work on the weaponization fund. The fund was created as part of the settlement of Trump's $10 billion lawsuit against the Internal Revenue Service over the leaking of his 2019 tax return to the media. Lawmakers from both parties have criticized the President and labeled it a 'slush fund' Republicans had opposed the fund over fears it would provide monetary compensation to January 6 Capitol rioters who assaulted police. House Speaker Mike Johnson met with Trump in the Oval Office on Monday Politico reporter Kyle Cheney pushed back on the DOJ claim that the fund had been killed, noting that the judge had only ordered a two-week pause to give the court time to work through the legal issues.  'Folks the court did NOT rule that the fund is dead,' Cheney wrote.  'She only ruled that for a two-week period the fund would be on pause while the judge could sort through the legal issues. Abiding by the court order does not mean killing the fund.' The Daily Mail has contacted the White House and the DOJ for comment.  Democrats, meanwhile, plan to launch a separate 'coordinated effort to kill the slush fund' before Republicans attempt to pass immigration enforcement funding, according to Senate Minority Leader Chuck Schumer.  There appears to be a lot of finger-pointing over the fund's creation, with some administration officials disagreeing over whether White House staff were properly informed about it. According to Axios, one source said Trump's inner circle was included in discussions between the President's legal team and the DOJ, which was responsible for creating the fund. 'That's not true,' a separate senior official also Axios. 'The West Wing got blindsided.' The $1.776 billion fund was created by the DOJ earlier this month with the power to issue formal apologies and monetary relief owed to claimants. While Trump was barred from directly receiving payments from the fund, entities associated with him were not explicitly prohibited from filing additional ones. Five commissioners were suppose to be appointed to oversee the fund and disburse payments to those seeking redress for alleged political persecution under Biden. Trump previously defended the fund's creation by claiming it had 'been very well received' on Capitol Hill.  No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.