The Justice Department’s agreement that prevents future audits into President Donald Trump or his family’s prior tax returns is still in effect even as the controversial $1.8 billion anti-weaponization fund is on hold, two people familiar with the situation said on Tuesday. The sources, who spoke on the condition of anonymity, stressed that the president has not formally decided whether the fund has been closed.
White House officials spent much of Monday phoning lawmakers to assure them there would be no disbursements from the fund after a revolt among Republicans, according to the sources. Despite those assurances, the fund remains a flashpoint in Congress, and lawmakers are pressing for clearer answers.
Republican Senator John Kennedy described the situation as chaotic, saying, "Right now it’s a multi-vehicle pile-up," and noting that his colleagues want clarification from acting Attorney General Todd Blanche before proceeding with a $72 billion immigration enforcement bill. Blanche is scheduled to face a House subcommittee on Tuesday afternoon, where members are expected to demand a firm commitment that the fund will not be used for payouts.
Blanche is confronting a Congress angered by the administration over the creation of the fund, which was established as part of a settlement between the Department of Justice and President Trump. Under that agreement, Trump agreed to drop a $10 billion lawsuit against the Internal Revenue Service. Officials familiar with the White House's thinking said Blanche's prospects for being appointed attorney general are tied to how he handles questions about the fund. "He has to come back with some answers," one of the officials said.
The Justice Department did not respond to a request for comment on Tuesday. On Monday, DOJ said it would comply with a court order that temporarily paused the fund until June 12, but the department did not spell out what that pause means for the fund's permanent future.
President Trump ended a period of public silence on Tuesday afternoon by posting a link to a Substack piece titled, "The Truth the Media Won’t Tell You About the Anti-Weaponization Fund." The post praised the president for providing money to people who say they have been abused by the government and criticized the media and Democrats for labeling the fund a slush fund.
After a Republican Senate lunch on Tuesday, Senate Majority Leader John Thune said he had spoken with Blanche earlier in the day and expected the acting attorney general to ease members' concerns at the House hearing. "I think his statement is going to be very definitive," Thune told reporters. Thune also said he wants the immigration enforcement bill narrowly focused and not broadened to include other priorities of the president, and he has opposed a provision that would have allowed $1 billion to be spent securing a 90,000-square-foot ornate ballroom on the White House grounds that the president has requested.
Democrats have called for legislation that would bar the fund entirely. Senate Minority Leader Chuck Schumer told reporters on Tuesday, "Let’s be clear, Trump has not killed this slush fund." Schumer said any legislation should also nullify the no-tax-audit agreement that was part of the settlement.
With lawmakers from both parties signaling continued scrutiny, the fate of the $1.8 billion fund and the durability of the no-audit agreement remain unsettled. The coming days, including Blanche’s testimony and the court’s temporary pause through June 12, are likely to shape whether the fund is permanently closed, legislatively barred, or remains in legal and political limbo.
Summary
The Justice Department’s no-audit agreement for President Trump and his family remains active even as his $1.8 billion anti-weaponization fund has been paused by a court order through June 12. White House officials sought to reassure lawmakers there would be no payouts following Republican opposition, but lawmakers continue to demand definitive action. Acting Attorney General Todd Blanche faces a House subcommittee hearing where he is expected to be pressed for a clear statement on the fund’s demise; his handling of the issue may affect his prospects for a permanent appointment.
Key points
- Justice Department agreement to block future tax audits for Trump and his family remains in place - relevant to legal and regulatory policy around the executive and tax enforcement.
- The $1.8 billion anti-weaponization fund has been temporarily paused by a court order through June 12, and White House officials told lawmakers there will be no payouts amid a Republican revolt - affecting congressional negotiations on a $72 billion immigration enforcement bill.
- Acting Attorney General Todd Blanche will face a House subcommittee and is expected to be pressed for clear commitments; his response may influence his prospects for being appointed attorney general.
Risks and uncertainties
- Unclear final status of the $1.8 billion fund - whether it will be permanently closed, subject to legislation, or revived remains unresolved; this uncertainty affects federal appropriations and political risk.
- Potential legislative conflict over provisions in the immigration enforcement bill - disputes such as the rejected $1 billion ballroom security provision illustrate the risk of broader policy riders derailing funding bills and affecting negotiations in Congress.
- Dependence on Blanche's testimony - how convincingly the acting attorney general answers lawmakers could determine next steps in Congress and impact the administration's legal posture, leaving lingering uncertainty for markets sensitive to political risk.