House Democrats Criticize Trump’s $1.7bn Compensation Fund as a Corruption Risk
House Democrats have strongly condemned a settlement that establishes a $1.7 billion compensation fund, calling it a "slush fund" designed to benefit former President Donald Trump’s allies. Among the critics is House Minority Leader Hakeem Jeffries, who, along with other lawmakers, filed an amicus brief with the court on Monday. The brief asserts that the arrangement "raises the specter of corruption unparalleled in American history."
In their filing, the lawmakers accuse the Department of Justice of "colluding" with Trump and urge the presiding judge to dismiss the case herself. They argue that Trump is engaging in "self-dealing" by acting in roles on both sides of the litigation.
"Never in the history of the United States has a sitting president sought a monetary settlement from the government he leads – let alone sought many billions of dollars in taxpayer funds," the brief states.
"Should this lawsuit achieve Plaintiffs’ desired ends, it would result in the improper and unconstitutional transfer of taxpayer dollars into the pockets of the President, his family, and his allies."
"Congress has not authorized any fund, much less one involving billions of taxpayer dollars, for these purposes," they added.
Representative Jamie Raskin, ranking member of the House Judiciary Committee, issued a press release condemning the settlement:
"No president can concoct a fake case for $10 billion in damages against the government so he can be plaintiff and defendant and then ‘settle’ his bogus case against himself as a judge."
Other News Highlights
Police have "neutralized" an active shooter at the Islamic Center of San Diego. Authorities confirmed five fatalities and are investigating the incident as a hate crime. Updates will be provided as more information becomes available.
A senior State Department official reportedly facilitated a visa for former Polish Justice Minister Zbigniew Ziobro, who is facing 26 charges in Poland related to judicial reforms criticized by the European Union. Ziobro had been living in Hungary under asylum granted by former Prime Minister Viktor Orbán but faced extradition after Orbán's electoral defeat.
Donald Trump announced on his Truth Social platform that he would "hold off" a planned military attack on Iran scheduled for Tuesday, following requests from Gulf leaders. Trump stated that "serious negotiations" are underway and that Gulf states expect a deal that will include "NO NUCLEAR WEAPONS FOR IRAN!" He also warned that the U.S. military remains prepared for a large-scale assault if an acceptable agreement is not reached.
"I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond. This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN! Based on my respect for the above mentioned Leaders, I have instructed Secretary of War, Pete Hegseth, The Chairman of The Joint Chiefs of Staff, General Daniel Caine, and The United States Military, that we will NOT be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached."
Trump also called for an investigation into mail-in voting in Maryland, alleging that "500,000 Illegal Mail In Ballots" were sent out under the direction of Governor Wes Moore, whom he labeled "corrupt." Despite his criticisms, Trump has used mail-in voting himself.
Legal experts have expressed concern over Trump’s attempt to dismiss a $10 billion lawsuit against the Internal Revenue Service. The lawsuit, filed by 93 members of Congress and represented by Platkin LLP and Democracy Defenders Fund, aims to block the creation of the $1.7 billion fund. Law professor Carl Tobias noted that by dropping the suit, Trump’s lawyers might be trying to avoid judicial oversight.
Trump is also expected to announce an expansion of TrumpRx, his discounted drug website, with an address scheduled for 4:30pm ET.
Recap of the Day
Donald Trump has moved to dismiss a $10 billion lawsuit against the IRS while his administration announced the creation of a fund to compensate his allies for alleged government persecution. Acting Attorney General Todd Blanche stated:
"The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again."
Trump resumed his criticism of Congressman Thomas Massie of Kentucky, calling him "the worst Congressman in the long and storied history of the Republican Party" and urging voters to remove him from office in the upcoming primary.
Defense Secretary Pete Hegseth spoke at a campaign rally for Ed Gallrein, who is challenging Massie in the Republican primary. The Pentagon confirmed that Hegseth’s participation was vetted and cleared by legal counsel, including the Department of War Office of General Counsel.
South Carolina lawmakers began discussions on redistricting efforts that could lead to a Republican sweep in the state’s congressional delegation, following similar debates in Tennessee, Alabama, and Louisiana.
A Republican official account posted a graph showing a sharp reduction in drug overdose deaths between January and December 2025, attributing the decline to border security measures. However, data from the CDC indicates the decline began during the Biden administration, with a 23.3% decrease in overdose deaths in Biden’s final year compared to a 13.4% decline during Trump’s second term.
A Brookings Institution report estimates that over 145,000 U.S. children have experienced parental detention by immigration authorities since January 2025, with 22,000 children having all co-resident parents detained. The majority of affected children have parents from Mexico, Guatemala, and Honduras. Washington D.C. and Texas have the highest rates of children with detained parents.
Vice President JD Vance spoke at the Milbank Manufacturing Company in Kansas City, Missouri, praising American workers and Missouri’s Republican leaders for redrawing congressional maps that reduce Democratic and Black voting power.
Senator Thom Tillis announced he will not support the budget reconciliation bill if considered this week, citing concerns about timing and funding provisions related to Trump’s ballroom. Other Republican senators have also expressed reservations about the $72 billion package, particularly the $1 billion allocated for the Secret Service, which was later removed following a Senate parliamentarian ruling.
Defense Secretary Pete Hegseth’s participation in Ed Gallrein’s campaign rally was defended by the Pentagon, which stated that no taxpayer funds were used and that his involvement complies with federal laws including the Hatch Act.
"Secretary Hegseth is attending this event in his personal capacity," the Pentagon spokesperson said. "No taxpayer dollars will be used to facilitate his visit. His participation has been thoroughly vetted and cleared by lawyers, including the Department of War Office of General Counsel, and does not violate the Hatch Act or any other applicable federal statute."
"I have to say for the lawyers that I am here in a private capacity," Hegseth said at the rally. "As a fellow citizen, a fellow American and a fellow combat veteran, I am here to support Navy Seals and Gallrein."
Stacey Young, executive director and founder of Justice Connection, criticized the Department of Justice’s handling of the case:
"This case is a clear example of why Justice Department lawyers take an oath to serve the Constitution, not the White House. This department’s leadership is intent on abusing its power to curry favor with the President and execute his retribution campaign. The ‘Anti-Weaponization Fund’ fits a pattern of corruption that is eroding DOJ’s integrity and Americans’ faith in the rule of law."
Trump Administration Establishes $1.7bn Fund to Compensate Alleged Victims After IRS Lawsuit Dismissal
The Department of Justice announced a settlement agreement between Donald Trump and the Internal Revenue Service resulting in the creation of an "anti-weaponization fund" totaling $1.7 billion. The fund is intended to compensate individuals whom Trump claims were wrongfully targeted by the Biden administration.
The settlement requires the attorney general to issue an order establishing the fund within 60 days of the agreement’s effective date. The Treasury Department is to receive all necessary documentation to facilitate the transfer of funds to the designated account.
According to a memo from Acting Attorney General Todd Blanche:
"Once the funds are deposited into the Designated Account, the United States has no liability whatsoever for the protection or safeguarding of those funds, regardless of bank failure, fraudulent transfers, or any other fraud or misuse of the funds."
The fund will be overseen by five commissioners: four appointed by the attorney general and removable by Trump, and a fifth appointed in consultation with congressional leadership. The fund has the authority to issue formal apologies and must submit quarterly reports to the attorney general detailing disbursements.
There appear to be no restrictions on who may seek compensation from the fund. Any remaining funds at the end of Trump’s term would be returned to the federal government.
As part of the settlement, Trump will drop monetary damage claims against the government and end the investigation into Russian interference in the 2016 election.
Earlier on the same day, Trump renewed his attacks on Congressman Thomas Massie, a rare Republican critic of the former president, urging voters to oust him in the upcoming primary election.
Massie has opposed several Trump-backed initiatives, including tax and spending cuts, and has pushed for congressional oversight of military actions and the release of Jeffrey Epstein files.
