EXCLUSIVE: Republican Party War as Donald Trump Faces Rebellion Over $1.8Billion Slush Fund Scandal

Donald Trump is facing a growing Republican rebellion over a controversial $1.8billion fund after one of his most powerful allies in Congress refused to back the White House's efforts to draw a line under the scandal, RadarOnline.com can reveal.

The President's administration has been forced onto the defensive after the Justice Department agreed to pause the so-called Anti-Weaponization Fund following a federal court order.

The fund, valued at $1.77billion, was created as part of a settlement in Trump's lawsuit against the Internal Revenue Service over the leak of his tax returns. Critics have argued it lacks legal authority and sufficient oversight, while supporters say it was designed to compensate people they believe were unfairly targeted by the government.

The dispute comes as Republicans, led by Senate Majority Leader John Thune, attempt to negotiate key immigration funding legislation while avoiding a damaging internal party fight ahead of the midterm elections.

Thune signaled many Republicans remain unconvinced by the administration's decision to halt the fund, raising fresh doubts about Trump's ability to unite his party behind him.

"The way the statement is worded, I think it's clear that they're not proceeding with the fund, but obviously, whether that's sufficient to satisfy a number of our members is something we're still sorting through," Thune said.

Asked whether he was concerned Trump could veto legislation if lawmakers moved to prohibit the fund outright, Thune replied: "Oh yeah, don't you?"

A Republican source familiar with Senate discussions told Radar the pause had done little to calm concerns among lawmakers.

"There is still a lot of frustration inside the conference," the insider said. "Many members want a much clearer commitment that the fund is gone permanently, not just suspended while the legal challenges play out."

The dispute threatens to complicate Republican efforts to advance a $70billion package for immigration enforcement agencies, with Democrats expected to force votes on amendments targeting the fund.

Another Republican source said lawmakers were worried about being placed in a politically difficult position.

"No one wants to be voting on something that could become a campaign issue a few months before voters head to the polls," the insider said. "That's why there's pressure on the administration to resolve this once and for all."

Senate Judiciary Committee chairman Chuck Grassley also indicated the administration had not gone far enough.

"It's pretty clear that the President has to say very explicitly that there's not going to be a weaponization fund," Grassley said.

Louisiana Senator John Kennedy, a longtime Trump supporter, criticized the broader legislative battle.

"The reconciliation bill looks like a broken arm with the bones sticking out," Kennedy said.

He added, "Saying you're going to follow a court order doesn't tell me anything. You have to follow the court order."

US District Judge Leonie Brinkema last week ordered the administration to stop taking further action to establish or operate the fund pending a court hearing on June 12.

In a statement posted on X, the Justice Department said it strongly disagreed with Brinkema's ruling but would comply with the order.

The department argued the fund had been created to address what it described as the mistreatment of individuals who had been targeted by government actions, regardless of political affiliation.