Update: President Donald Trump has abandoned plans to compensate January 6 protesters with cash from a $1.8 billion slush fund.
“It’s dead for now,” a senior Trump administration official told Axios on Monday, June 1. “We’re planning to respect the courts,” the administration official told Axios.
The news comes after a federal judge in Virginia blocked the U.S. Justice Department from distributing $1.8 billion from an IRS settlement to the so-called “Anti-Weaponization” fund created by Trump.
Judge Leonie Brinkema, in the Eastern District of Virginia, blocked the DOJ from distributing $1.8 billion to Trump’s slush fund.
The fund would have paid millions to Trump’s supporters who were arrested and sent to prison for their participation in the January 6, 2021 protests.
Democrat lawmakers complained that a January 6th protester, who was pardoned by Trump and went on to molest two children, might receive millions.
In the Southern District of Florida, Judge Kathleen Williams ordered Trump’s lawyers to explain why 35 retired judges claim that his IRS settlement was “collusive and fraudulent.”
The IRS settlement raises profound questions
The 35 former federal judges urged Judge Williams to reopen Trump v. IRS because “the purported ‘settlement’ raises profound questions about the parties’ candor toward the Court and manipulation of the judicial system, which threatens to undermine confidence in the administration of justice.”
Judge Williams ordered the government to file a response by June 15. She said the response should address “the charges of collusion” and whether the dismissed case “was premised on deception by the Parties.”
Trump sued the IRS in January 2026 after an IRS contractor illegally leaked his tax returns. The IRS and Trump agreed to a settlement on May 18, then Trump dropped his lawsuit.
Lawmakers argued the IRS settlement had nothing to do with January 6
In his lawsuit filed on January 29, Trump claimed the contractor inflicted damages of “at least” $10 billion. The IRS quickly settled the case for $1.8 billion without defending it.
Lawmakers argued that Trump’s settlement with the IRS had nothing to do with Trump’s supporters who claim they were targeted by the Biden administration.
Lawmakers also disagreed with Trump’s unusual immunity from civil or criminal liability for federal offenses, including penalties for past income tax violations.
The unusual settlement included an assurance that the IRS will never audit Trump or his family members and associates for life. It is believed to be the first-ever settlement of its kind involving the IRS.
I know what happened…they heard Black folks say…oh if you can pull 1.7billion out the air…then you can find our Reparations money!? That's why for now its on chill……if them criminals can get paid then our hard working educated clean record Black Americans can too!?
— Make Statements Ask Questions!? (@Senkisms32) June 1, 2026