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news Scmp World 2026-06-02

US Justice Department Drops Controversial $1.8 Billion 'Slush Fund' Plan

The U.S. Justice Department has abandoned a controversial plan to create a $1.8 billion compensation program criticized as a 'slush fund' for political allies. Acting Attorney General Todd Blanche confirmed the decision.


The US Justice Department on Tuesday dropped a contentious plan to create a US$1.8 billion compensation programme that critics had denounced as a “slush fund” for President Donald Trump’s political allies. “We are not moving forward with the fund,” Acting Attorney General Todd Blanche said during testimony before a House committee. The about-face is a setback for one of Trump’s most divisive second term initiatives, which had drawn criticism from Democrats, legal experts and numerous Republicans...

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