Democrat-led US states are considering imposing a 100% tax on payouts from a $1.8 billion fund established by President Donald Trump. The fund, known as the ‘Anti-Weaponization Fund,’ is intended to compensate individuals who claim they were victims of politically motivated legal and political targeting.
President Trump and his allies have long asserted they were subjected to unfair investigations during the Biden administration. They cite examples such as the FBI search of Trump’s Mar-a-Lago estate, the probe into alleged ties with Russia, and various criminal cases against Trump supporters.
The fund was created as part of a legal settlement following Trump’s lawsuit against the Internal Revenue Service over the leak of his tax records. The $1.776 billion amount is a symbolic reference to the year of the US Declaration of Independence.
Critics, including some Republicans, have denounced the proposal. Colorado Senator Michael Bennet called it a “corrupt theft of taxpayer dollars.” North Carolina Senator Thom Tillis said it would be “absurd” to compensate individuals convicted of assaulting police officers during the January 6 Capitol riot.
A five-member commission would oversee the fund. Acting Attorney General Todd Blanche, who previously served as Trump’s defense attorney, is expected to appoint most members. The commission can authorize payments to those who demonstrate illegal targeting by the federal government.
The Department of Justice states there are no partisan restrictions on eligibility. A senior administration official said anyone can apply, including Democrats, January 6 defendants, or even Hunter Biden, the son of former President Joe Biden.
To counter the fund, officials in California, New York, and Wisconsin are drafting legislation to tax any payouts at 100%. California Governor Gavin Newsom endorsed the idea, stating it is “an action we look forward to taking.”
New York Assembly member Alex Bores declared in a video that the state would tax 100% of any money taken from the fund. He specifically mentioned individuals who stormed the Capitol, stating, “too bad, we’re taking it.”
The Department of Justice criticized these state proposals, accusing Democratic governors of “flaunting their love of lawfare.” The DOJ remains “extremely confident” in the fund’s legality and stated it will not allow judges’ policy preferences to block restitution for victims of lawfare.
Supporters argue the fund is not unprecedented, pointing to the existing DOJ Judgment Fund used to settle claims against the federal government. They describe the program as a rebranding of a legal settlement fund authorized by Congress decades ago.
The fund’s immediate future is uncertain. On Friday, US District Judge Leonie Brinkema temporarily blocked the Trump administration from setting up or operating the fund. The injunction will remain in effect at least until June 12 while she considers further legal arguments.
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