Acting Attorney General Todd Blanche announced on Tuesday that the Justice Department will discontinue plans for a $1.8 billion fund intended to compensate individuals who claim they were unfairly investigated. The decision aims to resolve a standoff between the Trump administration and Republican lawmakers, who had blocked funding for immigration enforcement agencies due to concerns about the payout fund.

The proposed fund had become a point of contention amid broader disputes over immigration policy funding. Some Republicans expressed apprehension that taxpayer dollars might be used to compensate individuals involved in the January 6, 2021, Capitol attack. By abandoning the fund prior to disbursing any payments, the administration seeks to alleviate these concerns and move forward with other priorities.

“We are not moving forward with the fund, period,” Blanche told lawmakers during a House Appropriations Committee hearing overseeing the Justice Department’s budget. When questioned by Rep. Grace Meng (D-New York) on whether the fund was permanently discontinued, Blanche reaffirmed, “Correct.”

The Trump administration’s decision comes amid escalating pressure from Republican members demanding that any funding for immigration enforcement agencies, such as U.S. Immigration and Customs Enforcement (ICE) and U.S. Border Patrol, be contingent upon explicit authorization through a reconciliation bill. Some Republicans indicated they would withhold support for immigration agency budgets if the payout fund remained in place.

The move to dissolve the fund represents a strategic retreat by the Trump administration, which has pursued an aggressive and costly agenda on immigration enforcement. Resolving the impasse may facilitate the approval of funding essential to sustaining immigration operational capabilities, particularly along the southern border.

No immediate alternative measures to address claims of unfair investigations were announced, and it remains to be seen how the administration will address potential grievances raised by individuals affected by prior investigations. For now, the Justice Department appears focused on restoring legislative support for immigration enforcement funding by eliminating the controversial compensation mechanism.