A $1.8bn “lawfare” fund will funnel US taxpayer money to Trump’s allies

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Republican and Democratic lawmakers are trying to block the creation of a $1.8bn fund that Donald Trump claims will compensate “victims of lawfare” by the Biden administration.

So what? These victims are the president’s political allies. The “anti-weaponisation” fund is part of an unusual deal that Trump has struck with the Internal Revenue Service (IRS) in exchange for dropping a $10bn lawsuit against the tax agency. It

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  has been criticised as a “slush fund”;

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  stretches US constitutional norms to their limits; and

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  could see taxpayer money funnelled to January 6 rioters.

Patronage system. The Department of Justice (DoJ) says the fund will offer redress to people who feel they were unfairly prosecuted for political reasons, regardless of their political allegiance. In reality, it could serve as an instrument to reward members of Trump’s base who flout the law.

Details, details. The Trump administration has given few details about how the money will be disbursed or who will be eligible to receive it. But a lawyer representing hundreds of January 6 defendants has said he will seek compensation through the fund for his clients.

Litigator-in-chief. Trump filed his $10bn lawsuit against the IRS in January, accusing the agency of not doing enough to prevent the leak of his tax returns in 2019.

A winning case? Apparently not. The New York Times reported that the IRS’s lawyers believed they could defeat the lawsuit and had advised the DoJ to dismiss it. Instead the DoJ settled Trump’s claims without contesting them in court.

Trump v Trump. The case presented the unusual scenario of a sitting US president suing the government he controls and negotiating with his own appointees. The decision to strike the deal was made by Todd Blanche, the acting attorney general, who was previously Trump’s personal lawyer. In April, Blanche said he would tell Trump “I love you, sir” if the president fired him.

Carte Blanche. As part of the settlement, the US is “forever barred and precluded” from prosecuting Trump, his family and his businesses over their past tax returns. The fund will be overseen by five people selected by Blanche whom Trump can fire at will.

Bigger picture. Donald K Sherman, head of the non-profit Citizens for Responsibility and Ethics in Washington, has called it “one of the single most corrupt acts in American history”. But it also fits into a broader pattern. Throughout his second term, Trump has used the DoJ to pursue vendettas against his political opponents, such as the former FBI director James Comey.

Capitol trouble. The most likely claimants are the roughly 1,500 rioters pardoned by Trump after their assault on the US Capitol on 6 January 2021. Many of them claim their sentences were excessive.

Red line. Two police officers who defended the Capitol have filed a lawsuit challenging the legality of the fund. Many Republicans are also against it. Senate majority leader John Thune has said he is “not a big fan”. Mitch McConnell, another influential Republican senator, has described it as “utterly stupid, morally wrong”.

Hard sell. With the midterms approaching, it will be difficult to convince voters struggling to pay their grocery bills that people who assaulted police officers deserve payouts.

What’s more… This is not the only fund setting Republican lawmakers’ teeth on edge. There is also opposition to the $1bn Trump is seeking for security for his White House ballroom.

Photograph by Steven Hirsch/Pool/AFP via Getty Images