Justice Official Faces Capitol Hill Questions Over Controversial $1.8B Compensation Fund

WASHINGTON — Acting Attorney General Todd Blanche will face lawmakers on Capitol Hill Tuesday as the Trump administration takes a step back from controversial plans for an almost $1.8 billion compensation fund designed to pay allies of President Donald Trump who claim they were wrongfully investigated and prosecuted.

While the House Appropriations Committee hearing was originally scheduled to discuss the Justice Department’s budget, legislators are expected to focus heavily on questioning about the proposed fund that has generated fierce criticism due to concerns that violent pro-Trump demonstrators who attacked the U.S. Capitol on Jan. 6, 2021, might qualify for compensation.

The Republican president is now having second thoughts about proceeding with the fund, which was created to settle his legal case against the Internal Revenue Service regarding the disclosure of his tax documents, according to someone with knowledge of his considerations who spoke Monday. This reconsideration comes amid Republican criticism and court challenges. The Justice Department announced Monday it would follow a Virginia court’s temporary prohibition of the administration’s “Anti-Weaponization Fund,” essentially agreeing to suspend the program for a minimum of two weeks.

A separate judge in Florida suggested potentially reopening the IRS legal case due to “grievous allegations” of inappropriate conduct leveled against the administration by those opposing the settlement.

The Trump administration has justified the fund as a proper remedy for what officials claim was a politicized Justice Department under President Joe Biden’s Democratic administration, an accusation the Biden administration firmly rejected. While some Trump supporters, including those involved in the Capitol demonstration, have welcomed the announcement, Congressional Republicans have responded with considerably more opposition, putting Blanche in the position of trying to calm a GOP base that typically supports the administration closely.

The controversy has particularly created problems in the Senate, where Republicans boldly departed Washington 10 days ago without approving funding legislation for Trump’s immigration enforcement departments. Republicans who came back to Washington on Monday indicated they lack sufficient votes to approve the Homeland Security spending measure until the White House collaborates with them to establish restrictions on the fund. Many have urged the administration to impose limitations or abandon the concept entirely.

During a Senate budget hearing last month, Blanche declined to eliminate the possibility that those who committed violence on Jan. 6 might qualify for compensation and has consistently stated in interviews that anyone who believes they were targeted by the criminal justice system may submit an application. A five-member commission selected by Blanche will determine compensation awards.

However, he appears to have adopted a more cooperative approach in private discussions when facing Republican frustration.

Blanche faced significant resistance last month during a heated closed-door session with GOP senators, where more than half expressed concerns, including by yelling at the Justice Department’s top official, Republican Sen. Ted Cruz of Texas revealed in a recent podcast episode.

“There were fireworks at an epic level — and I’ve got to say, it’s one of the roughest meetings I’ve seen in my entire time in the Senate,” Cruz said.

In private discussions, Blanche was “adamant” that no one who attacked police at the Capitol would receive money, according to Cruz.

“He said not just ‘no,’ but ‘hell no,’” the senator recalled.