Republicans consider next steps after scrapping of $1.8 billion fund for Trump allies

“Democrats won’t settle for half measures," said Senate Democratic leader Chuck Schumer of New York. "We’re going to kill the slush fund permanently and we are going to bury it and bury it deep.”

GOP senators has also revolted against the settlement fund before leaving for a Memorial Day recess two weeks ago. They returned to Washington this week saying they wanted more information from the administration about the future of the fund, which could potentially go to Trump supporters who beat police and attacked the Capitol on Jan. 6, 2021.

The Justice Department said Monday it would comply with a court order pausing implementation of the fund. And then acting Attorney General Todd Blanche said in testimony Tuesday that it was being dropped altogether.

“We are not moving forward with the fund, period,” Blanche said.

Immigration bill caught in settlement uproar

Caught in the middle is legislation that would fund Trump’s immigration enforcement agencies for three years. Republicans abruptly left town May 21 without passing it after Democrats said they would offer amendments to scrap the fund or scale it back, forcing Republicans to go on the record for or against it and endangering the money for Immigration and Customs Enforcement and Border Patrol.

Returning to Washington on Monday evening, Senate Majority Leader John Thune said he wasn’t sure if the immigration spending bill would move this week. “To be determined,” he told reporters.

He offered little more clarify after Blanche's assurances.

“It’s still a work in progress," he told reporters.

Republican senators leaving a lunch meeting Tuesday also said it was still unclear if it would move.

“We'll just have to wait and see,” Sen. John Kennedy, R-La., told reporters. If senators are satisfied with Blanche's testimony, “we'll probably proceed quickly,” he said.

Standoff comes after surprise announcement

The extraordinary standoff comes after Trump announced the fund with no heads up to lawmakers as part of a settlement to resolve his lawsuit against the IRS over the leak of his tax returns. When word of the settlement broke, the Senate was already navigating tricky passage of the immigration legislation with an added $1 billion in White House security costs — including for Trump’s ballroom project.

Furious, Senate Republicans jettisoned the White House security money from the bill and made clear they would not pass the legislation at all unless the White House made major changes to the settlement.

“I do think the best way to handle it is if the administration decides to shut it down themselves,” Thune told reporters Monday, referring to the fund.

The Justice Department said it would comply with a ruling Friday from U.S. District Judge Leonie Brinkema, who temporarily halted the fund for two weeks. The judge scheduled a June 12 hearing for arguments on whether to extend her order.

Republicans issue rare ultimatum to DOJ

The outrage over the fund came to a head last month at a closed-door meeting between senators and Blanche that Republican Sen. Ted Cruz of Texas described on a recent episode of his podcast as “one of the roughest meetings I’ve seen in my entire time in the Senate.”

GOP senators had been discussing several ways that they could curb the fund, including limiting who can receive payouts, changing the makeup of the commission in charge of settlement decisions, adding some sort of judicial review for applicants or scrapping the fund altogether.

Also complicating matters is Trump’s campaign-year push to defeat GOP lawmakers whom he sees as disloyal, including some of Thune’s most reliable Republican votes in the narrow 53-47 Senate.

Sens. Bill Cassidy of Louisiana and John Cornyn of Texas both lost reelection bids in May after Trump endorsed their primary opponents, and it’s unclear how supportive they’ll be of the president’s agenda going forward.

Associated Press writers Joey Cappelletti and Eric Tucker contributed to this report.