Democrats’ 100% Tax Plan on Fund Payouts Zeroes In on GOP Angst

May 21, 2026, 8:25 PM UTC

Democrats are trying to force the GOP’s hand by introducing a 100% tax on payments from the Justice Department’s new fund for victims of government weaponization, even as Republicans face increasing pressure on what’s become a politically toxic $1.8 billion pot of money.

Rep. Mike Thompson (D-Calif.) unveiled his version of the propsoal Wednesday and Republicans thwarted his attempt to force a vote on other legislation targeting the fund Thursday at a Ways and Means Committee markup.

The fund was set up this week after President Donald Trump agreed to drop his $10 billion lawsuit against the IRS over ...

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