Trump establishes $1.8 billion 'Anti-Weaponization Fund' while dropping IRS lawsuit

May 19, 2026, 02:11 pm

The Trump administration is establishing a special fund worth approximately $1.8 billion termed the "Anti-Weaponization Fund," the Wall Street Journal (WSJ) reported on May 18 (local time).

According to the WSJ, this measure came as U.S. President Donald Trump dropped his lawsuit seeking damages against the Internal Revenue Service (IRS) over the leak of his tax records.

President Trump, along with his eldest and second sons and the family business, the Trump Organization, demanded at least $10 billion in damages against the IRS this past January, claiming an IRS employee leaked their tax records to the media. The employee in question was convicted of the charges and sentenced to five years in prison in 2024.

However, because the situation involved a sitting president suing the federal government he leads, it sparked intense controversy over its propriety. President Trump ultimately decided to drop the lawsuit, and in exchange, announced the plan to establish the "Anti-Weaponization Fund."

The fund will be used by the U.S. federal government to compensate individuals who claim that the justice system and government authorities have been "weaponized" against them. The fund is scheduled to operate through December 2028.

The WSJ explained that the fund's total size is set at $1.776 billion, a figure that appears to mirror 1776, the year of America's founding.

While the Department of Justice did not disclose specific details regarding who would qualify for compensation, speculations suggest that a large number of Trump allies and supporters could apply. In particular, observers note that individuals prosecuted in connection with the January 6, 2021 Capitol riot could potentially be included.

Acting Attorney General Todd Blanche plans to form a five-member committee to manage and operate the fund.

The Democratic Party immediately pushed back against the move. Democratic Senator Ron Wyden criticized it as a "slush fund for right-wing political factions." Furthermore, a group of over 100 Democratic House representatives stated in an opinion piece that "the president’s allies are attempting to secure illicit gains using taxpayer dollars."

#Trump administration #IRS lawsuit