Acting Attorney General Todd Blanche defended a newly created $1.8 billion compensation fund during a Senate appropriations hearing on May 19. The program, born out of a settlement with the Trump administration, promises payments to anyone claiming mistreatment by the federal government, not limited to Republicans. Blanche insisted the scheme would operate with transparency, though he refused to confirm eligibility of Jan. 6 rioters.

Critics on the Senate floor called the pool a “slush fund” for Trump allies, arguing the lack of judicial oversight could let partisan payments flow unchecked. Democrats cited an addendum that bars the IRS from auditing Donald Trump, his sons and the Trump Organization, while Vice President JD Vance stressed no money will go to the former president or his family.

Senate Majority Leader John Thune warned the fund would face intense scrutiny as appropriators review the proposal, and Republican Senator Bill Hagerty claimed the Justice Department had previously infringed GOP rights. With the Treasury poised to allocate the cash, investors watch for potential legal challenges that could affect litigation financing markets and precedent for future political settlements.