Blanche faces Congress as Trump pauses $1.8B ally compensation fund

Acting Attorney General Todd Blanche is set to appear before the House Appropriations Committee as the Trump administration pauses a nearly $1.8 billion fund designed to compensate political allies who claim they were unjustly investigated or prosecuted.

The suspension follows a Virginia court's temporary block of the fund and mounting Republican opposition in Congress over whether rioters who stormed the Capitol on Jan. 6, 2021, could qualify for payouts — a fight that exposes deep rifts inside the GOP over the administration's use of Justice Department resources.

The Trump administration put the fund on hold after a Virginia court issued a temporary blocking order, and the Justice Department announced it would comply with the ruling for at least two weeks, according to The Korea Times. Officials have framed the fund as a remedy for what they describe as a weaponized Justice Department under former President Joe Biden.

Republicans in Congress have been among the fiercest critics. Lawmakers blocked passage of a Homeland Security spending bill until the administration agreed to place limits on who can receive payouts. Their primary concern: that rioters who attacked the Capitol on Jan. 6, 2021, could be declared eligible.

Texas Sen. Ted Cruz described a heated private meeting between Blanche and Republican senators. "There were fireworks at an epic level — and I've got to say, it's one of the roughest meetings I've seen in my entire time in the Senate," Cruz said on a recent episode of his podcast. Cruz added that Blanche told the senators directly that those who assaulted Capitol police would not receive compensation — recalling Blanche's words as "not just 'no,' but 'hell no.'"

Under the fund's proposed structure, a five-member commission appointed by Blanche would determine individual payouts, The Korea Times reported. One stated purpose of the fund is to resolve Trump's lawsuit against the IRS over the leak of his tax returns. A Florida judge has separately raised the prospect of reopening that lawsuit, citing allegations of improper dealing connected to the fund.

Blanche previously stated that anyone who feels persecuted by the criminal justice system is free to apply — a broad standard that has alarmed congressional Republicans who fear the program could be abused.

The House Appropriations Committee hearing Tuesday will be one of the first public opportunities for lawmakers to question Blanche directly about the fund's eligibility standards and the administration's broader intentions for the Justice Department.