Betrayed by His Own: Trump's Plan Fails Completely
The administration of US President Donald Trump has decided to cancel plans to establish a compensation fund worth nearly US$1.8 billion (approximately Rp32 trillion), a move that had previously sparked controversy within the Republican Party. The decision was made following a wave of opposition from Republican senators who feared the funds could be used to pay parties involved in various controversial cases, including those involved in the attack on the US Capitol on 6 January 2021.
The announcement regarding the cessation of the fund was delivered directly by the Acting US Attorney General, Todd Blanche, during a session with members of Parliament on Tuesday. “We are not proceeding with the fund,” Blanche stated, as quoted by Reuters. This brief but firm statement effectively ended a debate that has triggered internal tensions within the Republican Party over recent weeks.
The fund, known as the anti-abuse of power fund, emerged from a legal settlement between Trump and the US Department of Justice. This agreement was intended to resolve a US$10 billion lawsuit filed by Trump against the Internal Revenue Service (IRS) regarding the alleged improper handling of his tax records. As part of the deal, the government also agreed to a ban on future audits of the tax records of Trump and his family. Blanche confirmed that these provisions will remain in effect despite the cancellation of the compensation fund.
Initially, the US$1.776 billion fund was designed to provide compensation to individuals claiming to be victims of government abuse of power. However, the plan immediately triggered controversy. Tensions escalated last month when Blanche declined to provide assurances that individuals who attacked police officers during the 6 January 2021 Capitol riots would not be eligible to receive the funds. This stance incensed several Republican senators, who believed the fund could be misappropriated. The rejection from Trump’s own camp drew significant attention, as it is rare for Republican members to openly oppose a presidential agenda.
The controversy surrounding the fund also impacted discussions on a US$72 billion bill designed to fund immigration operations and border patrols. Several Congressional leaders questioned whether the budget package could pass if the anti-abuse of power fund remained in place. According to a source familiar with internal White House discussions, the political future of Blanche himself depended on his ability to alleviate the concerns of parliament members regarding the fund. Consequently, the Trump administration ultimately chose to retreat.
Two sources familiar with the process stated that White House officials spent most of Monday contacting members of Parliament individually, aiming to convince them that no funds would be disbursed following the Republican rebellion. However, these efforts proved insufficient. Parliament members continued to demand firmer guarantees ahead of the House subcommittee session on Tuesday afternoon, where Blanche finally publicly declared that the fund would not proceed. Amidst the growing polemic, Trump eventually spoke out regarding the future of the fund. On Tuesday afternoon, Trump posted a link to an article on the Substack platform titled “The Truth the Media Won’t Tell You About the Anti-Abuse of Power Fund”. The piece praised Trump for attempting to provide aid to those claiming to be victims of government actions, while also criticising the media and the Democratic Party for labelling the fund as a political tool that could be used without strict oversight. Nevertheless, Trump’s post did not directly address the decision to halt the fund announced by Blanche hours later.