'Corruption in plain sight': Democrats blast Trump's $1.7B Jan 6 slush fund

WASHINGTON, DC: Democratic lawmakers sharply criticized President Donald Trump on Friday, May 15, following reports that his administration is considering a $1.7 billion compensation fund for individuals and entities claiming they were targeted by the Biden administration, including people charged in connection with the January 6 Capitol attack.

The backlash came after ABC News reported that Trump is expected to drop a series of legal claims against the federal government, including a $10 billion lawsuit against the Internal Revenue Service, in exchange for the creation of the compensation program.

Democrats described the proposal as an unprecedented use of taxpayer funds and accused Trump of attempting to financially benefit political allies.

Dems accuse Trump of seeking taxpayer-funded payouts for allies

Senator Adam Schiff (D-Calif) accused Trump of using legal action against his own administration to secure financial benefits for supporters and associates.

“First, Donald Trump sues his own IRS to enrich himself,” Schiff wrote on X. “Now he wants to use billions in taxpayer funds to compensate his allies, including thousands charged for the January 6 insurrection. This is easily the most corrupt regime in US history.”

Senator Chris Van Hollen (D-Md) also criticized the proposal, alleging Trump was using federal resources to reward political supporters while Americans continue to struggle with inflation and rising costs.

“Trump is 'dropping' his bogus lawsuit against the IRS in exchange for a slush fund, courtesy of your tax dollars, that he can use to pay off his political allies,” Van Hollen wrote. “While people drown in high prices & inflation, Trump’s lining his & his buddies’ pockets.”

Senator Mark Warner (D-Va) linked the proposed fund to broader criticism of Trump’s spending priorities, writing on X that the president was “demanding a $1.7 billion slush fund to pay Jan 6 rioters” while “prices at the pump skyrocket.”

Senator Patty Murray (D-Wash) described the proposal as “blatant corruption,” saying, “Trump wants to steal from American taxpayers to pay off his friends and political allies. Every Member of Congress had better oppose this corrupt heist.”

Settlement proposal linked to IRS and January 6 claims

According to reports, Trump is expected to resolve multiple legal disputes with the federal government in exchange for the creation of a commission-controlled compensation fund worth approximately $1.7 billion.

The commission would reportedly have authority to distribute taxpayer funds to individuals who claim they were harmed by what Trump and allies have described as the Biden administration’s “weaponization” of the justice system.

Potential recipients could include nearly 1,600 individuals charged in connection with the Jan 6 Capitol attack, as well as Trump-linked entities.

The proposed settlement would also reportedly include a public apology from the IRS over the 2019 leak of Trump’s tax returns. 

Trump’s legal team defended the lawsuit, saying that the IRS “wrongly allowed a rogue, politically-motivated employee to leak private and confidential information” involving Trump and the Trump Organization.

The arrangement could face legal scrutiny, particularly after US District Judge Kathleen Williams questioned whether Trump and the federal agencies named in the lawsuit are “sufficiently adverse” for the case to proceed.