WASHINGTON — The Trump administration has scrapped plans to use nearly $1.8 billion in taxpayer dollars to pay people who believe they were wrongly prosecuted by the Justice Department — a proposal that halted work on legislation to fund immigration and deportation activities. 

Acting Attorney General Todd Blanche testified Tuesday before a House committee the DOJ will no longer move forward with those plans shortly after Senate Majority Leader John Thune, a South Dakota Republican, said the administration had reversed course. 

That decision could clear the way for the Senate to debate a roughly $70 billion package meant to fund immigration and deportation for the rest of President Donald Trump’s term. 

“I think his statements are going to be very definitive, very clear and create the certainty that I hope all of our members, and House members need as well, in order for us to proceed on the reconciliation bill,” Thune said, referring to Blanche. “But I’m not guaranteeing that happens yet.” 

Blanche confirmed Thune’s statements when he testified before a House Appropriations subcommittee in the afternoon.

“We’re not moving forward with the fund, period,” Blanche said when pressed by the subcommittee’s top Democrat, Rep. Grace Meng of New York.

“You and Associate Attorney General Woodward signed earlier documents regarding the settlement and this fund, would both of you now sign and release documents reversing the DOJ position on the fund?” Meng asked.

“We’re not moving forward with the fund. I’m not sure what that means to sign documents reversing. There’s nothing to reverse,” Blanche replied.

The DOJ posted on social media this week that it plans to abide by a temporary court ruling that blocked distribution of the funds, but Republican lawmakers said that wasn’t enough to end the impasse it created.

The Justice Department announced the creation of the fund last month as part of a legal settlement between Trump and the IRS over leaked copies of his returns during Trump’s first term. The settlement included provisions that precluded future IRS investigations into Trump and his family.

Senate Republicans weigh in

Thune said GOP senators had a “quite robust conversation” during a closed-door lunch about the DOJ fund and whether to move forward with their immigration and deportation package. 

North Dakota Sen. John Hoeven said after that meeting it’s up to GOP leaders to determine whether there are enough votes to move forward with the immigration package. 

“I think the next step is for our whip team to find out where everybody’s at based on the administration’s indication that they’re not going to move forward with the fund,” Hoeven said. 

Louisiana Sen. John Kennedy said there is a “chance” that Republicans could begin a marathon amendment voting session on the immigration bill as soon as Wednesday, if Blanche’s testimony alleviates concerns created by the DOJ fund. 

Montana Sen. Steve Daines, however, said he believes it’s “unlikely” that process begins this week. 

North Carolina Republican Sen. Thom Tillis said earlier in the day, before the lunch, that he wouldn’t accept taxpayer dollars going toward people who attacked the Capitol on Jan. 6. 

“To provide restitution to somebody who assaulted a police officer and pled guilty to it. I mean, man, I’ve seen some crazy stuff before, but that’s right up there with crazy,” he said. 

Utah Republican Sen. John Curtis said he needs to know “if it’s dead or nearly dead.” 

Oklahoma Republican Sen. James Lankford said he wants clarification from the White House about the settlement fund in light of the court’s ruling. 

He added that Republicans are waiting to see if “the court case set aside both the settlement fund and the audits.”

“We need clarification for what it is and isn’t, because the White House already said ‘we agree, we don’t like it, but we agree with the courts,’” Lankford said. “What does that mean?”

Amendment to ban fund

Democrats have also criticized Trump and those in his administration over the fund, vowing to block it in law. 

Senate Minority Leader Chuck Schumer, D-N.Y., said during an afternoon press conference that promises from Trump and administration officials are “worthless.” 

“Trump sued his own government, had his own Justice Department settle the case and is now trying to use taxpayer dollars to pay off his MAGA allies, billionaire buddies and cop-beating insurrectionists,” Schumer said. 

“And let’s be clear, Trump has not killed this slush fund,” he added. “He has not revoked the special tax immunity he gave himself and his family. He has not ended the corruption. He hit a temporary roadblock. That’s it.”

Schumer said the first amendment he would offer during debate on Republicans’ immigration and deportation bill would “ban Trump’s slush fund permanently and revoke his family’s free rein to commit tax fraud forever.”

Ashley Murray contributed to this report.