President Donald Trump is reconsidering his push for a $1.776 billion compensation fund for what the administration has described as victims of politically motivated prosecutions, according to a person familiar with his thinking. The Justice Department has paused the program to comply with a temporary block issued Friday by U.S. District Judge Leonie Brinkema in Virginia, who halted any transfer of funds following a lawsuit filed by Democracy Forward. A federal hearing on the matter has been scheduled for June 12.

The fund, known as the Anti-Weaponization Fund, was announced last month as part of a settlement in Trump's lawsuit against the Internal Revenue Service over the leak of his personal tax returns. Critics have pointed to the unusual nature of the settlement, noting that the IRS — whose leadership is appointed by the president — did not mount a defense against the suit, prompting accusations of collusion. The fund carries no requirement to disclose the identities of recipients or the amounts paid out, and administration officials have acknowledged that individuals pardoned for roles in the January 6, 2021 Capitol riot could qualify for payments.

Opposition has emerged from both parties. Senate Majority Leader John Thune told reporters the cleanest resolution would be for the administration to shut the fund down voluntarily. Former Vice President Mike Pence called the prospect of compensating rioters who assaulted police officers 'deeply offensive,' adding that the sentiment was broadly shared by Republicans and the general public. Senate Minority Leader Chuck Schumer, in a letter to colleagues, called the fund 'Trump's most brazen act of self-dealing yet' and pledged that Senate Democrats would force a floor vote to block payments.

An administration source told Axios the fund had 'become a distraction,' adding that while the president believes government was weaponized against people beyond himself, the fund was 'not the time and vehicle' to address it. Several Democratic-led states have moved to further complicate distributions: California Governor Gavin Newsom has proposed a 100 percent state income tax on any fund payments made to California residents, with similar proposals surfacing in Illinois, New York, and Connecticut.

The episode represents a rare instance of significant intraparty friction for the Trump White House, with prominent Republican figures publicly pressuring the administration to retreat on a presidential priority. Whether Trump formally abandons the fund or seeks an alternative mechanism will likely become clearer at or before the June 12 court hearing.