Padilla, Welch, Senate Judiciary Colleagues Demand Urgent and Thorough Investigation into Trump’s $1.8 billion DOJ Slush Fund

Demand to DOJ IG Comes After Republicans Blocked Padilla’s Bill to Stop Taxpayer-funded Rewards for January 6th Rioters WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.), a member of the Senate Judiciary Committee, joined Senator Peter Welch (D-Vt.) and all Senate Judiciary Committee Democrats in demanding that the Department of Justice (DOJ) Inspector General (IG) launch an immediate, thorough, and quick investigation into President Trump’s creation of the nearly $1.8 billion “Anti-Weaponization Fund.” In their letter to DOJ Acting IG William Blier, the Senators emphasized how President Trump’s slush fund, created from a settlement agreement in Trump v. Internal Revenue Service (IRS ), represents waste, fraud, and abuse of an unprecedented magnitude and must be subjected to independent scrutiny. The Senators slammed President Trump’s slush fund for drawing almost $1.8 billion from the Judgment Fund—a permanent, indefinite appropriation funded by American tax dollars to pay legitimate settlements and court judgments against the United States. “Now these tax dollars are set to go to whomever President Trump pleases; there are no limitations on individuals affiliated with the President receiving payments from the Fund,” wrote the Senators . “Not only is the baseless partisan nature of the Fund egregious in and of itself, but the Fund has no limits on payouts to individuals convicted of violent crimes, including, for instance, the President’s supporters who were convicted of assaulting law enforcement officers on January 6 th , 2021, at least one of whom has gone on to commit further horrendous crimes empowered by his belief in future monetary restitution from the Trump Administration.” The Senators also highlighted how Trump and his appointees have virtually complete discretion over the slush fund’s structure and who gets payouts. “According to DOJ, the Fund’s rules and procedures may be shielded from the public at the discretion of the Fund’s commissioners,” continued the Senators . “The only person who will receive information about who has received a payout is the Attorney General—provided in a confidential report that is shielded from public scrutiny. As part of this settlement, the President was also granted immunity from pending and future tax liability. This blanket immunity wipes away the potential for a $100 million tax penalty.” The Senators further outlined how the Trump v. IRS settlement agreement, and its addendum, were signed by DOJ officials with clear conflicts of interest. They also demanded accountability and a full investigation from the Office of the Inspector General. “Acting Attorney General Todd Blanche, who signed the addendum, served as President Trump’s lead criminal defense attorney in multiple matters prior to his current role,” wrote the Senators . “He was reportedly advised to recuse himself from any personal matters involving the President shortly after he was confirmed as Deputy Attorney General. Associate Attorney General Stanley Woodward, who signed the agreement, represented January 6 th defendants and allies of the President in the Mar-a-Lago classified documents case brought by Special Counsel Jack Smith.” “This settlement agreement and the fund it creates demand accountability,” concluded the Senators . “Congress mandated that inspectors general be established as ‘independent and objective units’ that ‘prevent and detect fraud and abuse.’ The Fund’s structure, secrecy, and lack of payout criteria, and general arbitrariness, fall well within your authority. We request that the Office of the Inspector General launch an immediate, thorough, and quick investigation. We also request that any matters deemed to fall outside of OIG’s jurisdiction be promptly referred to the Office of Professional Responsibility for appropriate review. Please also notify our offices by June 2, 2026, of your decision.” In addition to Padilla and Welch, the letter was signed by Senate Judiciary Committee Ranking Member Dick Durbin (D-Ill.) and Senators Richard Blumenthal (D-Conn.), Mazie Hirono (D-Hawaii), Adam Schiff (D-Calif.), Sheldon Whitehouse (D-R.I.), Chris Coons (D-Del.), Amy Klobuchar (D-Minn.), and Cory Booker (N.J.). Last month, Padilla slammed the Administration’s $1.8 billion slush fund and highlighted that the slush fund could be used to compensate or financially reward convicted January 6 insurrectionists. Last month, Padilla asked for unanimous consent to pass his No Rewards for January 6 Rioters Act — introduced with Whitehouse on January 6 of this year, the fifth anniversary of the attack — which would prohibit federal funds from being used to compensate or refund January 6 insurrectionists. Sen. Tommy Tuberville (R-Ala.) objected. The full letter is available here and below: Dear Acting Inspector General Blier: We write to request that you immediately initiate an investigation into the creation of the nearly $1.8 billion “Anti-Weaponization Fund” announced by the Department of Justice (DOJ) on May 18, 2026, from a settlement agreement in Trump v. Internal Revenue Service (IRS). This slush fund represents waste, fraud, and abuse of an unprecedented magnitude and must be subjected to independent scrutiny. The dispute in Trump v. IRS involved questionably adverse parties—the President sued his own Administration, naming the personnel he directs as defendants. Reflecting this very concern, the judge presiding over the case scheduled a hearing for May 27, 2026, to consider whether there was sufficient adverseness between the parties involved for the case to proceed. The Fund will draw almost $1.8 billion from the Judgment Fund, a permanent, indefinite appropriation funded by American tax dollars to pay legitimate settlements and court judgments against the United States. Now these tax dollars are set to go to whomever President Trump pleases; there are no limitations on individuals affiliated with the President receiving payments from the Fund. Not only is the baseless partisan nature of the Fund egregious in and of itself, but the Fund has no limits on payouts to individuals convicted of violent crimes, including, for instance, the President’s supporters who were convicted of assaulting law enforcement officers on January 6, 2021, at least one of whom has gone on to commit further horrendous crimes empowered by his belief in future monetary restitution from the Trump Administration. President Trump and his appointees have virtually complete discretion over the Fund’s structure and who gets payouts. According to DOJ, the Fund’s rules and procedures may be shielded from the public at the discretion of the Fund’s commissioners. The only person who will receive information about who has received a payout is the Attorney General—provided in a confidential report that is shielded from public scrutiny. As part of this settlement, the President was also granted immunity from pending and future tax liability. This blanket immunity wipes away the potential for a $100 million tax penalty. The settlement agreement, and its addendum, were signed by DOJ officials with clear conflicts of interest. Acting Attorney General Todd Blanche, who signed the addendum, served as President Trump’s lead criminal defense attorney in multiple matters prior to his current role. He was reportedly advised to recuse himself from any personal matters involving the President shortly after he was confirmed as Deputy Attorney General. Associate Attorney General Stanley Woodward, who signed the agreement, represented January 6th defendants and allies of the President in the Mar-a-Lago classified documents case brought by Special Counsel Jack Smith. This settlement agreement and the fund it creates demand accountability. Congress mandated that inspectors general be established as “independent and objective units” that “prevent and detect fraud and abuse.” The Fund’s structure, secrecy, and lack of payout criteria, and general arbitrariness, fall well within your authority. We request that the Office of the Inspector General launch an immediate, thorough, and quick investigation. We also request that any matters deemed to fall outside of OIG’s jurisdiction be promptly referred to the Office of Professional Responsibility for appropriate review. Please also notify our offices by June 2, 2026 of your decision. Thank you for your attention to this important matter . ###