Trump’s $1.8 Billion Insurrectionist Slush Fund ‘Dead For Now’ Amid Public Outrage

Yves here. In an extremely rare victory, popular unrest has stopped Trump’s embezzlement. One can only hope that we will see more Trump-wing clippings as his popularity and legitimacy grow.

By Brad Reed, staff writer at Common Dreams. Originally published on Common Dreams

President Donald Trump is reportedly abandoning his effort to get Congress to sign off on creating a $1.8 billion fund for political allies amid public backlash.

A source identified as a senior Trump administration official told Axios on Monday that the fund is “dead for now” after two federal judges last week weighed in on it, one blocking any funds from being disbursed.

One source told Axios that the fund—which was created to pay allies who were allegedly wrongfully prosecuted during former President Joe Biden’s administration, including the hundreds of protesters who stormed the US Capitol on January 6, 2021—had “become a distraction” that threatened the president’s agenda.

“The president believes that the government has armed the people – he was not the only one,” the source said. “But this is not the time for your car.”

According to NOTUS political reporter Reese Gorman, House Speaker Mike Johnson (R-La.) “helped convince” Trump to withdraw the fund for the time being during his speech on Monday.

“The fund received significant pushback from Hill Republicans,” Gorman reported, “and a number of House Republicans were looking for ways to stop the fund from happening.”

The decision to withdraw the fund came as Democratic lawmakers have been putting together laws and amendments to derail it.

Senate Majority Leader Chuck Schumer (D-NY) said Monday that his caucus was not satisfied with killing Trump’s current fund, but wanted to prevent him from trying to create another in the future.

“If Trump and the Republicans are really going to abandon this corrupt program, they should have no problem blocking it legislatively,” Schumer wrote in a social media post. “This week, Senate Democrats will push legislation to block this slush fund and make sure no president can do it again. Trump’s word is nowhere near enough.”

Schumer’s comments were echoed by Sen. Chris Coons (D-Del.), who also cast doubt on whether Trump has actually canceled his plan.

“I don’t trust Trump’s word, and neither do the American people,” Coons wrote. “I look forward to working with my Democratic colleagues in the Senate to permanently ban this slush fund. If Republicans in Congress oppose this fund as they say, they should have no problem joining us.”

The press office of Gov. Gavin Newsom of California, a possible 2028 presidential candidate who last week proposed a 100% tax on any California residents who received money from Trump’s fund, celebrated its demise.

“Days after Gavin Newsom challenged Trump’s J6 crime fund and proposed a 100% tax on profits, Axios reports that Trump has pulled the plug,” the press office wrote. “Bullies fold when you retaliate!”

Sen. Elisa Slotkin (D-Mich.), Adam Schiff (D-Calif.), and Mark Kelly (D-Ariz.) on Monday introduced a new bill called the “Drain the Slush Fund Act,” which would prevent taxpayer money from being paid to “the president, his associates, people convicted of crimes, or those involved in the 2016 convictions.”

In announcing the legislation, Slotkin said the fund was the latest example of Trump using the government as “his bank and his allies.”

“This so-called… anti-weapons fund is an unprecedented waste of taxpayer money, and it must be stopped,” Slotkin said. “Our bill does just that. Democrats, Republicans, and Independents are clamoring for the president to focus on the economy and cut spending.”

In the House of Representatives, Rep. Tom Suozzi (D-NY) partnered with Rep. Brian Fitzpatrick (R-Pa.) introduced similar legislation aimed at banning the fund.

“Congress must declare what we know is wrong,” Suozzi wrote in a social media post announcing the legislation. “The test and measurement of our democracy and the will of the American public hold us accountable to that level.”

Lisa Gilbert, president of Public Citizen, said the reported decision to withdraw the fund was good news, but warned against ignoring other toxic policies being pushed by the president and his GOP allies in the new budget reconciliation process.

“As important as it is to adopt this odious policy,” Gilbert said, “we must not allow it to be an excuse to green-light massive expansion.” [US Immigration and Customs Enforcement] money included in the reconciliation bill.”

The organization fighting for legal rights, Democracy Forward, which filed lawsuits aimed at blocking the operation of this fund, said it will continue to press its case until it is confirmed that the president’s plan is really dead.

“Until the administration completely abandons this program, it is indisputable that it will not happen again, and the harm to our clients is remedied, we will be in court challenging it,” said Skye Perryman, president and CEO of Democracy Forward. “We look forward to the government’s response to the courts and our requests, and to success on behalf of our clients.”