The Trump administration has abandoned plans to establish a $1.8 billion compensation fund intended for the President’s allies, including individuals pardoned for their involvement in the January 6 Capitol riot. This decision came after significant opposition from both Democrats and some members of the Republican Party.

The proposed fund emerged from an out-of-court settlement between former President Donald Trump and the Internal Revenue Service (IRS). The agreement followed Trump’s lawsuit against the IRS concerning the unauthorized disclosure of his tax returns. As part of the settlement, the IRS consented to temporarily halt investigations into Trump’s tax matters.

White House officials described the reversal as a rare and necessary step in response to the widespread criticism. Lawmakers from both sides expressed concerns that the fund could be seen as providing undue benefits to individuals who had been implicated in controversial or criminal activities.

The move to scrap the compensation scheme halts what would have been an unprecedented financial agreement connected to a presidential legal dispute. Further details on how the administration intends to proceed in addressing the underlying issues remain unclear.