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Saturday, August 29, 2026 · Page 6 of 14
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Michael Cohen

The Compensation Fund Carousel


A billion-dollar fund frozen by the courts, condemned by both parties, and fueled by speculation exposes Washington’s crisis of trust, transparency, and accountability.

If you’re an American taxpayer trying to figure out what exactly is happening with President Trump’s proposed $1.776 billion Anti-Weaponization Fund, congratulations. You have officially become the ball in the world’s most expensive game of political ping pong.

Back and forth it goes.

One day the fund is alive. The next day it’s dead. Then it’s mostly dead. Then it’s only resting. Then administration officials start speaking in riddles that sound like rejected dialogue from a mafia movie.

“How dead it is is what’s being worked on.”

That’s not government communication. That’s something Tony Soprano says before dessert.

The fund itself emerged after President Trump chose not to continue pursuing his $10 billion lawsuit against the IRS. In its place came a proposal to establish a nearly $1.8 billion compensation fund designed to address what the administration characterizes as government weaponization and politically motivated prosecutions.

Predictably, the reaction was immediate.

Democrats hated it.

Republicans hated it.

The courts hated it.

And perhaps most importantly, the American people looked at the whole thing and collectively asked the same question:

“What exactly are we paying for?”

Last week, a federal judge in Virginia temporarily halted any further implementation of the fund pending additional hearings scheduled roughly two weeks from now. Meanwhile, congressional Republicans have reportedly been urging the White House to either significantly modify the program or abandon it altogether.

Senate Majority Leader John Thune has made clear that if the administration expects Republicans to stop worrying about politically damaging votes tied to the fund, it must provide assurances that the initiative is truly gone and won’t simply reappear later under a different name.

The problem is that Donald Trump has never been particularly fond of permanent endings.

Having known Trump as long as I have, I would caution anyone against declaring this fund dead.

Wounded? Perhaps.

Paused? Certainly.

Politically radioactive? Without question.

Dead? I wouldn’t bet the house on it.

Donald Trump treats retreat the way most people treat root canals. If he’s backing away today, it’s often because he’s searching for a different path tomorrow.

That’s precisely why so many Republicans remain uneasy.

What’s fascinating is that much of the opposition has centered on a controversy that remains largely speculative.

Much of the criticism from both Democrats and Republicans has focused on the possibility that individuals prosecuted in connection with January 6 could ultimately receive compensation from the fund. Members of Congress, cable news hosts, political commentators, and pundits have repeatedly raised that concern. It has become the dominant narrative surrounding the proposal.

Yet there remains a crucial distinction.

As of today, no publicly released plan has demonstrated that the fund was specifically designed to compensate January 6 defendants. No evidence has emerged showing that such payments were approved, planned, guaranteed, or earmarked. The notion has been discussed extensively, debated endlessly, and weaponized politically by both sides of the aisle, but discussion is not proof.

That doesn’t mean the concerns are unreasonable.

Taxpayers have every right to ask questions. When the federal government begins discussing distributions approaching $1.8 billion, Americans deserve transparency regarding eligibility requirements, oversight mechanisms, and who might ultimately benefit.

But it is equally important to distinguish between possibility and certainty.

The remarkable reality is that much of the political firestorm surrounding the fund has been fueled by what could happen rather than what has been shown will happen.

Nevertheless, perception often defeats facts in Washington.

The mere possibility that January 6 defendants could potentially benefit from the fund was enough to trigger bipartisan outrage, stall legislative priorities, and contribute to the mounting pressure that ultimately led to the current pause.

The irony here is almost laughable.

The Justice Department already possesses authority to settle claims against the federal government. Associate Attorney General Stan Woodward openly acknowledged that fact. Settlements have occurred under Republican administrations and Democratic administrations alike.

The Trump Justice Department previously settled claims involving Michael Flynn and Carter Page.

The Biden administration also approved settlements involving politically sensitive disputes.

None of that is unusual.

What’s unusual is creating a separate billion-dollar fund with a giant flashing neon sign attached to it reading: “ANTI-WEAPONIZATION.”

That’s where things went sideways.

Because once government starts creating special funds dedicated to addressing alleged political grievances, Americans naturally begin wondering whether justice is being applied equally or selectively.

That’s not a partisan concern.

That’s a trust issue.

And trust is something Washington has been hemorrhaging for years.

Americans no longer trust Congress.

They don’t trust the media.

They don’t trust federal agencies.

They don’t trust political explanations that arrive only after public outrage forces them into existence.

When politicians start moving around figures like $1.8 billion, taxpayers understandably want specifics before the checks are written.

Not after.

Before.

As the June hearing approaches, everyone appears to be searching for clarity.

Congressional Republicans want assurances.

Democrats smell political vulnerability.

The courts want answers.

The White House appears to be searching for an exit ramp that still leaves the door cracked open.

And taxpayers remain stuck in the middle, wondering exactly where $1.776 billion was supposed to go in the first place.

For now, the ball remains suspended in midair.

The fund may survive.

It may be rewritten.

It may be scaled back.

Or it may quietly disappear.

But if history has taught us anything about Donald Trump, it’s this:

Never mistake a pause for a surrender.

Especially when billions of dollars, political grievances, and unfinished battles are involved.

The game may be paused.

The paddles, however, are still on the table.

NYA thanks Michael Cohen!