Kehinde Adegoke | International Agencies
U. S. President Donald Trump is facing a firestorm after unveiling a nearly $1.8 billion taxpayer-funded ‘compensation fund’—a controversial move that critics say amounts to rewarding his inner circle and supporters.
By withdrawing a high-profile lawsuit and announcing payouts for those he claims were politically targeted, Trump has ignited concerns about abuse of public money and a brazen attempt to settle political scores.Controversy over the legitimacy of the lawsuit Trump withdrew from has not subsided.
Although Trump filed the lawsuit in his personal capacity, as the sitting president, he could command the defendant, the National Tax Service, and the Ministry of Justice, which represents it. Last month, the presiding judge noted, “It is unclear whether the parties are sufficiently adversarial to meet the constitutional requirements for a lawsuit.” Two days before the judge’s deadline for both legal teams to submit positions on the issue, Trump’s side withdrew the lawsuit.
Creation of a fund to compensate victims of “targeted investigations.”
According to the Washington Post (WP) on the 18th, Trump withdrew a $10 billion (approximately 15 trillion Korean won) damages lawsuit he filed in January. He alleged that National Tax Service employees leaked his and his family’s tax records to the media. At the same time, he announced an agreement with the National Tax Service and others to create the ‘Anti-Weaponisation Fund.’
This fund uses $1.776 billion (approximately 2.6 trillion Korean won) in taxpayer funds. It aims to compensate individuals—specifically his associates—who Trump claims were targeted by the alleged political weaponisation of the judicial system. Reports indicate that Trump himself and his family are excluded from compensation. Notably, the fund’s size, $1.776 billion, references 1776, the founding year of the United States.
Reflecting this contentious climate, a spokesperson for Trump’s legal team stated in a press release that day, “President Trump, his family, supporters, and numerous ‘America First‘ patriots have been targeted by Democratic-led law enforcement agencies, including the Ministry of Justice and the National Tax Service.” In a related statement, the Ministry of Justice declared, “Government agencies should never be used as weapons against any American.”
The ministry added, “The intention of this agreement is to correct past wrongs and prevent their recurrence.” During the settlement process, it is further reported, Trump withdrew a lawsuit against the Federal Bureau of Investigation (FBI) over the 2022 search of his Mar-a-Lago residence in Florida. He also withdrew lawsuits related to allegations of Russian interference in the 2016 election campaign.
Criticism over using taxpayer money to support associates and supporters
The Democratic Party has criticised Trump for attempting to use taxpayer funds to support his associates and supporters through the fund. They particularly take issue with the possibility that hardcore supporters who stormed the Capitol on January 6, 2021, and refused to accept the 2020 election defeat could benefit.
Over 1,600 individuals involved in the Capitol breach were charged with offences including police assault, unauthorised entry, property damage, and conspiracy to incite insurrection, but many were pardoned following the launch of Trump’s second administration.
Democratic Representative Jamie Raskin, a senior member of the House Judiciary Committee, condemned, “Trump is trying to turn rioters and insurrectionists involved in the ‘January 6th incident’ into millionaires using taxpayer money.”
Senate Democratic Leader Chuck Schumer also stated, “No president should use the Ministry of Justice as a personal compensation channel for those who attacked democracy.” He added, “(This measure) is one of the most despicable acts among all the corrupt practices Trump has committed.”
Amid these concerns, some have questioned the transparency of the compensation payments. The agreement requires details to be reported quarterly to the Ministry of Justice and included in audits. However, specific payment records are confidential. The WP reported that the Ministry of Justice has not explained whether detailed records will be disclosed.
Concerns over transparency remain, and the independence of the review structure is controversial. A five-member committee, appointed by the Attorney General, decides on compensation payments. However, Trump has the authority to replace committee members, further limiting external oversight of the fund’s operations.
PHOTO: On the 18th, U.S. President Donald Trump delivers a speech at a medical cost burden relief-related event held at the Eisenhower Executive Office Building in the White House, Washington, D.C., U.S. /EPA-Yonhap.