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100% Tax Proposed to Counter 'Most Corrupt Thing… Ever Seen From an American President'
Sen. Ron Wyden said the $1.8 billion slush fund was "staggeringly corrupt even by Trump's bottom-dwelling standards."
May 21, 2026
President Donald Trump's attempt to create a $1.8 billion slush fund for his political allies is coming under bipartisan attack, and congressional Democrats are proposing a 100% tax on any of its future beneficiaries to thwart what's being described as an unprecedented form of corruption in the nation's nearly 250-year history.
Rep. Mike Thompson (D-Calif.) on Tuesday introduced the first bill taxing Trump slush-fund payouts at a 100% rate, and he was followed on Thursday by Sens. Chuck Schumer (D-NY) and Ron Wyden (D-Ore.), who introduced a similar bill in the US Senate.
If enacted, the legislation would negate the entire $1.8 billion venture, which was created as purported restitution for Trump politcal allies who have been convicted of committing crimes on his behalf, and force beneficiaries to return any payments received to the US Department of Treasury.
The bill would slap on an additional 50% penalty "in the case of any willful attempt to avoid or evade the tax."
Wyden described the president's slush fund, which could be used to pay out cash to Trump supporters who violently stormed the US Capitol building on January 6, 2021, as "staggeringly corrupt even by Trump’s bottom-dwelling standards."
"Congress must do whatever it takes to prevent Donald Trump from stealing $1.8 billion from the American people to fund right-wing violence and handouts to insurrectionists," said Wyden. "This money doesn’t belong to Donald Trump, it belongs to the taxpayer.”
Thompson, the ranking member of the House Ways and Means Subcommittee on Tax, said that the legislation is need to stop Trump's attempt "to line the pockets of January 6th insurrectionists who attacked law enforcement and tried to overturn our democratic election."
"My legislation ensures if a sitting president sues our government while in office," added Thompson, "they get taxed 100% on any money paid through a trial or settlement."
Rep. Mike Levin (D-Calif.) took some time on Thursday to provide an overview of the Trump slush fund's creation in a lengthy social media post.
As explained by Levin, the fund came about after Trump filed a $10 billion lawsuit against the Internal Revenue Service (IRS) earlier this year over the 2019 leaking of his tax returns.
Levin noted that "IRS lawyers did their jobs" by writing a memo of legal arguments they believed would defeat Trump's lawsuit in court.
However, before the case could be fully heard in a courtroom, Trump agreed to drop his lawsuit while the US Department of Justice (DOJ) announced the creation of the $1.8 billion "anti-weaponization fund" as a settlement.
Levin also called attention to the structure of the committee, which he said was riddled with conflicts of interest.
"The acting attorney general, Trump’s former criminal defense attorney, picks the five commissioners who decide who gets paid," he said. "Trump can fire any of them. Proud Boys and Oath Keepers are not ruled out."
Levin concluded by calling the fund "the most corrupt thing I've ever seen from an American president."
While Democrats are taking the lead in the effort to block Trump's slush fund, some Republicans have also indicated their opposition to the initiative.
Rep. Brian Fitzpatrick (R-Pa.), one of the most vulnerable GOP members of the House, said on Wednesday that "a nearly $1.8 billion DOJ-controlled fund cannot be created, defined, and distributed in the shadows," and he demanded acting US Attorney General Todd Blanche provide answers about who will be eligible to receive payouts and under what legal authority.
"Taxpayer dollars will not be turned into a discretionary payout fund," Fitzpatrick emphasized. "Transparency is not optional. Accountability is not negotiable."
According to a Thursday report from Punchbowl News, Senate Republicans are preparing to slap restrictions on the $1.8 billion fund that could prevent any payments from going to January 6 rioters who attacked police officers.
In an interview with Punchbowl News, Sen. Thom Tillis (R-NC) expressed incredulity that such guardrails were even necessary.
"Imagine that—a fund that is set up to compensate people who assaulted Capitol Police officers," Tillis said. "How absurd does that sound coming out of my mouth?"
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'Republicans Are Starting to Crack': After Primary Loss, Sen. Cassidy Helps Advance Iran War Powers Resolution
"This is a major blow for the disastrous, backfiring war and sends a clear signal to President Trump: End the war, do not escalate it," said NIAC. "The hard work of pro-peace Americans is paying off."
May 19, 2026
After months of failed votes on Democratic war powers resolutions intended to end President Donald Trump's illegal assault on Iran, the US Senate finally advanced legislation to a final vote on Tuesday, when a fourth Republican broke ranks.
Sen. Bill Cassidy (R-La.) joined three other Republicans and all Democrats but one for the 50-47 vote on a motion to discharge Sen. Tim Kaine's (D-Va.) bill from committee. Cassidy's move notably came just days after he lost a primary race in which Trump backed one of his challengers—apparent retribution for the senator voting to convict Trump following his historic second impeachment.
"While I support the administration's efforts to dismantle Iran's nuclear program, the White House and Pentagon have left Congress in the dark on Operation Epic Fury," Cassidy said on social media Tuesday. "In Louisiana, I've heard from people, including President Trump's supporters, who are concerned about this war. Until the administration provides clarity, no congressional authorization or extension can be justified."
The US and Israel launched the operation on February 28, without authorization from Congress and in violation of the United Nations Charter. Faced with a key deadline under the War Powers Act earlier this month, the White House claimed the conflict had been "terminated" due to a ceasefire agreement reached hours after Trump's genocidal threat against Iran on April 7. However, the president has maintained a naval blockade, and Iran has continued to limit ship traffic through the Strait of Hormuz.
As with last week's vote on a war powers resolution from Sen. Jeff Merkley (D-Ore.), Sens. Susan Collins (R-Maine), Lisa Murkowski (R-Alaska), and Rand Paul (R-Ky.) backed the new motion, while Sen. John Fetterman (D-Pa.) voted with the GOP. A potential tie was avoided on Tuesday when Sens. John Cornyn (R-Texas), Thom Tillis (R-NC), and Tommy Tuberville (R-Ala.) did not participate.
The Associated Press noted that Kaine's bill "will get a vote on final passage, but the timing was not immediately clear," and if the three Republicans who were absent Tuesday maintain their stances on the war, the resolution could still ultimately be defeated.
Despite that uncertainty, congressional Democrats and other critics of the illegal assault welcomed the Tuesday vote that followed seven unsuccessful votes in the Senate and many more in the House of Representatives, where Republicans also have a narrow majority.
"This is a major blow for the disastrous, backfiring war and sends a clear signal to President Trump: End the war, do not escalate it," the National Iranian American Council (NIAC) declared on social media. "The hard work of pro-peace Americans is paying off."
NIAC president Jamal Abdi said that "it has taken 10 weeks and a dozen votes but Congress is finally coming in line with the vast majority of Americans who oppose the senseless war on Iran... There are strong odds it will pass in the Republican-controlled House later this week."
Senate Minority Leader Chuck Schumer (D-NY) said in a statement that "vote by vote, Democrats are breaking through Republicans' wall of silence on Trump’s illegal war."
"For more than 80 days, Trump has dragged America into a costly, chaotic conflict with no plan, no objective, and no legal authority," he continued. "Today proved our pressure is working: Republicans are starting to crack, and momentum is building to check him. We are not letting up."
According to The New York Times, Kaine similarly said that "the momentum is moving our way slowly."
While Trump would be able to veto a war powers resolution that reached his desk, Democrats have argued that passing one would make clear to him that his assault on Iran is unpopular. Kaine said that "what the president cares about is his own popularity, and when Congress, even including members of his own party, start to vote against him."
Kaine expects a final vote to come after the Memorial Day recess, and expressed hope that lawmakers returning to their state or districts will hear from frustrated constituents. He predicted that "people are going to hear an earful when they get home about gas prices," which have soared due to the Strait of Hormuz closure.
Alix Fraser, vice president of advocacy at the pro-democracy group Issue One, called Tuesday's vote "a significant step in the effort to reestablish one of Congress' most sacred roles—the constitutional right to send American men and women to war."
Fraser applauded "the senators who voted to reaffirm Congress's constitutional role in decisions of war and peace," recognizing by name the Republicans who had the "for having the courage to stand up for the American service members being asked to risk their lives, as well as for the American families already struggling with rising costs at home."
He also urged the House "to follow suit," emphasizing that "this is a pivotal moment for our democracy. We must decide whether future generations will inherit a system in which the representatives of the American people debate and authorize the most consequential decisions, like going to war—or whether we normalize a system where presidents can unilaterally lead the country into ill-defined and open-ended conflicts."
“Americans should remain concerned about the broader structural weaknesses that allowed the country to reach this point without meaningful congressional involvement from the outset," Fraser added. "The current war powers framework needs to be reformed to empower the legislative branch and follow the constitutional process that the framers intended."
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Trump Halts Iran Attack at Gulf Monarchs' Request as Democrats Renew War Powers Push
Senate Minority Leader Chuck Schumer urged the GOP to "realize that this war didn't end at the 60-day mark and will not end until Republicans show some backbone and support Democrats' war powers resolution."
May 18, 2026
As President Donald Trump announced Monday that he hit pause on a planned attack against Iran at the request of three Gulf monarchs, Senate Minority Leader Chuck Schumer renewed Democrats' push for a war powers resolution to end the illegal conflict.
Trump wrote on his Truth Social platform Monday afternoon that "I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond."
"This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!" the president continued. "Based on my respect for the above mentioned Leaders, I have instructed Secretary of War, Pete Hegseth, The Chairman of The Joint Chiefs of Staff, General Daniel Caine, and The United States Military, that we will NOT be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached."
Responding to the post on X, Trita Parsi, co-founder and executive vice president of the Quincy Institute for Responsible Statecraft, concluded that "once again, Trump has realized that escalation will end up badly for the US. That does not necessarily mean, though, that the necessary realism, discipline, and creativity will be mustered for the talks."
Prior to the president's Monday announcement, Parsi had warned that "the Middle East is once again teetering on the brink as Trump appears poised to reignite war with Iran," pointing out reporting that he would convene military advisers on Tuesday and that he had "flooded Truth Social with a barrage of incendiary threats."
The Trump administration partnered with Israeli forces to launch an assault on Iran—without authorization from Congress and in violation of the United Nations Charter—on February 28. Just hours after Trump's genocidal threat against Iran on April 7, a ceasefire agreement was reached; it has since been extended, though the US has maintained its naval blockade while Iran has continued to restrict ship traffic through the Strait of Hormuz.
The beginning of this month marked a key deadline under the War Powers Act, which the administration tried to dodge by claiming that the current ceasefire means the conflict has been "terminated." While key Republicans, including House Speaker Mike Johnson (La.), have tried to stick to that talking point, Democratic leaders and legal experts aren't buying it.
Nope.Not how this works.A naval blockade is an act of war and U.S. armed forces remain engaged in hostilities for the purposes of the War Powers Resolution.
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— Brian Finucane (@bcfinucane.bsky.social) May 17, 2026 at 10:15 AM
Congressional Democrats have repeatedly tried to pass war powers resolutions in the Republican-controlled chambers.
Last Thursday, Congressman Jared Golden (D-Maine) cast the deciding vote on the latest war powers resolution considered in the House of Representatives. The retiring former Marine sided with all Republicans except Reps. Tom Barrett (Mich.), Brian Fitzpatrick (Pa.), and Thomas Massie (Ky.) to block the measure.
As The Hill reported Monday:
Golden, a former Marine who served in both Iraq and Afghanistan, has indicated he'll support the next war powers resolution. He said he only opposed the last measure because it had a withdrawal deadline that had already passed.
"I look forward to voting for a clean, relevant resolution as soon as possible," Golden said in a statement Wednesday.
And Rep. Frederica Wilson (D-Fla.) could return to Congress after being absent for four weeks and not voting on any issue since April 17. Wilson released a statement Thursday that she recently underwent eye surgery and was unable to fly but plans to be back in Washington, DC, soon.
With Rep. Tom Kean Jr. (R-NJ) also absent since March 5 because of a "personal medical issue," Republicans can't have more than two defections on an otherwise party-line vote.
In other words, "it may [come] down to absences," as Punchbowl News reporter Anthony Adragna said on social media Monday.
Like in the House, the latest Senate vote also came down to a Democrat: Sen. John Fetterman (Pa.) has repeatedly voted with nearly all Republicans against war powers resolutions on Iran, and did so again last Wednesday. Unlike Golden, Fetterman told Semafor on Monday that Senate Democrats know he's "pretty much locked and loaded" regarding his support for Trump's war.
"Something like this is much more important than just voting what your base might demand. Because I think things are much bigger and more important than that. And Iran with a nuclear bomb is one of those things," Fetterman said, taking aim at anti-war campaigners. "I'm very much aware how damaging it is as a Democrat to hold these views. I had 20 CodePink dopes in my office."
CodePink held a "brown bag teach-in" lunch last week. The group said that "many of Fetterman's constituents feel betrayed by the person they campaigned to elect in 2022. Since becoming a senator in 2023, he has repeatedly broken with fellow Democrats to support Trump's wars and militaristic policies. Constituents hope this lunchtime educational session will help him better understand the human consequences of these positions and the growing opposition among Pennsylvanians to endless war and continued support for Israel."
While Fetterman opposed the latest resolution, Sens. Susan Collins (R-Maine), Lisa Murkowski (R-Alaska), and Rand Paul (R-Ky.) all voted in favor of it, and Schumer (D-NY) made clear on the chamber's floor Monday that he's pushing for an eighth vote.
"Over the weekend, Donald Trump told Iran, 'The clock is ticking, and they better get moving, fast, or there won't be anything left of them,'" Schumer noted. "How can Donald Trump say the clock is ticking when he told the Senate that the clock had paused when his war recently passed the War Powers Act's 60-day threshold to either end hostilities or get congressional authorization?"
"Senate Republicans need to stop playing dumb and realize that this war didn't end at the 60-day mark and will not end until Republicans show some backbone and support Democrats' war powers resolution to end the fighting," he declared. "This week, Democrats will force an eighth vote on our war powers resolution to withdraw our troops from hostilities with Iran."
Schumer added that "I urge Republicans to support our war powers resolution, end the war, get the troops out of harm's way, or else Republicans will learn that the clock is ticking not only on this war but on their own political futures."
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