U.S. Senate Majority Leader John Thune speaks during a press conference in the U.S. Capitol on Tuesday, June 2, 2026. (Photo by Jennifer Shutt/States Newsroom)
WASHINGTON — U.S. Senate Majority Leader John Thune said Tuesday the Trump administration has rescinded its plan to use a nearly $1.8 billion fund to pay people who believe they were wrongly prosecuted by the Justice Department.
That decision, combined with testimony from acting Attorney General Todd Blanche to a House panel in the afternoon, could end the gridlock that has so far stalled floor debate on a roughly $70 billion package meant to fund immigration and deportation for the rest of President Donald Trump’s term.
“I think his statements are going to be very definitive, very clear and create the certainty that I hope all of our members, and House members need as well, in order for us to proceed on the reconciliation bill,” Thune said, referring to Blanche. “But I’m not guaranteeing that happens yet.”
Blanche previewed his testimony to the House panel during a phone call with Thune, who said he believes the fund is completely off the table.
“The conversation I had with him was very definitive,” Thune, a South Dakota Republican, said.
The DOJ posted on social media this week that it plans to abide by a temporary court ruling that blocked distribution of the funds, but Republican lawmakers said that wasn’t enough to end the impasse it created.
The Justice Department announced the creation of the fund last month as part of a legal settlement between Trump and the IRS over leaked copies of his returns during Trump’s first term. The settlement included provisions that precluded future IRS investigations into Trump and his family.
Senate Republicans weigh in
Thune said GOP senators had a “quite robust conversation” during a closed-door lunch about the DOJ fund and whether to move forward with their immigration and deportation package.
North Dakota Sen. John Hoeven said after that meeting it’s up to GOP leaders to determine whether there are enough votes to move forward with the immigration package.
“I think the next step is for our whip team to find out where everybody’s at based on the administration’s indication that they’re not going to move forward with the fund,” Hoeven said.
Louisiana Sen. John Kennedy said there is a “chance” that Republicans could begin a marathon amendment voting session on the immigration bill as soon as Wednesday, if Blanche’s testimony alleviates concerns created by the DOJ fund.
Montana Sen. Steve Daines, however, said he believes it’s “unlikely” that process begins this week.
North Carolina Republican Sen. Thom Tillis said earlier in the day, before the lunch, that he wouldn’t accept taxpayer dollars going toward people who attacked the Capitol on Jan. 6.
“To provide restitution to somebody who assaulted a police officer and pled guilty to it. I mean, man, I’ve seen some crazy stuff before, but that’s right up there with crazy,” he said.
Utah Republican Sen. John Curtis said he needs to know “if it’s dead or nearly dead.”
Oklahoma Republican Sen. James Lankford said he wants clarification from the White House about the settlement fund in light of the court’s ruling.
He added that Republicans are waiting to see if “the court case set aside both the settlement fund and the audits.”
“We need clarification for what it is and isn’t, because the White House already said ‘we agree, we don’t like it, but we agree with the courts,’” Lankford said. “What does that mean?”
Amendment to ban fund
Democrats have also criticized Trump and those in his administration over the fund, vowing to block it in law.
Senate Minority Leader Chuck Schumer, D-N.Y., said during an afternoon press conference that promises from Trump and administration officials are “worthless.”
“Trump sued his own government, had his own Justice Department settle the case and is now trying to use taxpayer dollars to pay off his MAGA allies, billionaire buddies and cop-beating insurrectionists,” Schumer said.
“And let’s be clear, Trump has not killed this slush fund,” he added. “He has not revoked the special tax immunity he gave himself and his family. He has not ended the corruption. He hit a temporary roadblock. That’s it.”
Schumer said the first amendment he would offer during debate on Republicans’ immigration and deportation bill would “ban Trump’s slush fund permanently and revoke his family’s free rein to commit tax fraud forever.”
