The Justice Department formally abandoned plans to establish a $1.8 billion fund for individuals claiming political persecution, telling federal courts on Friday that the program would not move forward. This marks the clearest reversal yet of a controversial initiative that had drawn accusations of self-dealing and corruption from Democrats.

Acting Attorney General Todd Blanche initially promised Congress that the Trump administration had abandoned the fund, though he hesitated to put it in writing. President Trump later appeared to backtrack, expressing continued support for the idea. The fund emerged from a $10 billion lawsuit Trump filed against the IRS over a contractor leaking his tax information in 2019.

Two lawsuits challenged the fund's legality, including one from former Capitol riot prosecutor Andrew Floyd and a watchdog group. Both cases were filed in federal courts in Washington and Virginia, directly questioning the legal basis for the fund. Judges have scheduled hearings this week to examine the matter further.

The formal withdrawal signals the Justice Department is prioritizing legal clarity over political optics, closing a contentious chapter that highlighted tensions between executive promises and judicial oversight.