Republican Senate Majority Leader John Thune has split with the Trump administration over its creation of a $1.8bn (£1.3bn) fund aimed at compensating individuals “unfairly” investigated by previous administrations.
Thune, the most high-profile member of Trump’s party to criticise the plan, told reporters he was “not a big fan” and did not see “a purpose” for the fund.
The fund is part of a deal that saw President Donald Trump drop a $10bn lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns to the media.
On Tuesday, the justice department filed a memo that expands the deal, blocking the IRS from pursuing action against Trump and his family on past tax returns.
As part of the deal, which was unveiled on Monday, the lawsuit’s plaintiffs, which include Trump’s elder sons, Donald Jr and Eric, and the Trump Organization, will receive an apology, but no monetary compensation, the department said.
The “Anti-Weaponization Fund” will consist of a five-member commission, four of whom will be appointed by the attorney general.
It will have a total of $1.776bn available to settle and pay cases – a figure that refers to the year the US declared independence from Great Britain 250 years ago.
Thune, the top ranking Republican in the US Senate, said that he was “not sure exactly how they intend to use it” and that he expected it to undergo a “full vetting” by lawmakers.
“My assumption is that, based on some of the blowback that’s come since this was announced, that there would be a significant amount of attention paid to it,” he said.
Democrats have condemned it as a “slush fund” for Trump’s political allies.
Blanche defended fund on Capitol Hill, saying the compensation would be non-partisan and available to anyone.
Meanwhile, in an update on Tuesday, the justice department quietly filed a one-page memo that expands the settlement, and says that Trump is guaranteed to not be investigated for tax crimes
The document, signed by Blanche but not by the IRS, says that the tax agency is “forever barred and precluded” from pursuing “examinations” of Trump’s finances.
It extends this protection to “related or affiliated individuals”, and related trusts and businesses.
The memo includes “tax returns filed before the effective date” of the settlement, which was on Monday.
A department spokesperson said in a statement to CBS News, the BBC’s US partner, that it only applies to existing, not future audits.
“There would be little point in settling several significant claims if either party could simply turn around and seek to initiative more adverse claims that could have been pursued previously,” they said.
Asked about the fund during a news briefing on Tuesday, Vice-President JD Vance said it had been misrepresented by the media.
“Anybody can apply for it,” he said, adding that this included President Joe Biden’s son, Hunter Biden, who was convicted of felony gun-related charges in 2024.
In a congressional hearing earlier on Tuesday, Blanche also defended the fund, arguing that Democrats “are not excluded from seeking compensation”.
While he acknowledged the fund was “unusual”, Blanche said it was “not unprecedented”.
“It’s not limited to Republicans,” he said. “There’s no limitation on the claims.”
Blanche faced criticism from Democrats during the hearing.
Washington state Democratic Senator Patty Murray, for example, said that “this [the fund] is corruption that has never been more blatant or more widespread”.
“What is happening is you write the cheque, Trump and his cronies cash it. American taxpayers who are already being whacked with high prices are going to foot the bill,” she said.
Hours after the announcement on Monday, the treasury department’s general counsel, Brian Morrissey, abruptly resigned after seven months in the position.
While Morrisey has not commented on his departure, a Treasury spokesman said he served the government with “honour and integrity”.
By BBC News
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