President Donald Trump has stepped back from a proposed $1.8 billion political persecution compensation fund after the Justice Department agreed to a judge’s order delaying activation until at least June 12. The postponement follows intense criticism from both parties, who view the scheme as a clear taxpayer giveaway to the president’s allies. Administration insiders said the ruling offered a convenient exit.

The plan emerged amid Trump’s broader effort to channel federal resources toward supporters facing legal challenges. Republicans warned the fund could set a precedent for politicized payouts, while Democrats labeled it a misuse of public money. Behind closed doors, senior officials expressed relief that the court’s injunction curbed a project they feared would spark further legal battles, and could jeopardize future campaign financing.

Suspending the fund eliminates an immediate fiscal exposure that could have reached billions, easing pressure on the federal budget. It also signals limits to Trump’s ability to unilaterally allocate taxpayer dollars for partisan aims, reinforcing judicial checks on executive actions. The episode underscores how court interventions can reshape policy proposals before they consume public resources.