Trump admin considers establishing $1.7 billion compensation fund for Trump allies

The Trump administration is considering the creation of a $1.7 billion compensation fund to reimburse allies who faced federal investigations and prosecutions under the Biden Justice Department.

The proposal, which has not been finalized or approved, could extend to nearly 1,600 individuals charged in connection with the January 6, 2021, Capitol attack.

Three people familiar with internal deliberations described the plan on condition of anonymity. It would use taxpayer dollars to compensate Trump associates targeted by DOJ actions during the previous administration.

Critics, including Democrats and former government officials, denounced the idea as a vast political slush fund financed by taxpayers. The plan creates an ethical, legal, and political minefield for Republicans and current Justice Department leadership.

President Trump controls both the IRS — the agency he previously sued — and the Justice Department, which would normally defend the government against such claims.

The unusual measure is under discussion as the administration weighs how to address what it views as politically motivated investigations from the Biden era.