CNBC’s Joe Kernen, co-host of “Squawk Box,” on Friday voiced sharp skepticism over President Trump’s decision to drop a $10 billion lawsuit against the IRS in exchange for creating a $1.776 billion “anti-weaponization” fund, calling the arrangement something that “smells bad.”
The fund, announced Monday by Acting Attorney General Todd Blanche—who previously served as Trump’s personal attorney—is designed to compensate individuals who claim they were unfairly investigated or prosecuted by the Department of Justice. Blanche also signed a memo directing the IRS to refrain from auditing Trump’s past tax returns and to drop certain claims against the president, his family, and his businesses.
“It just looks — smells bad,” Kernen told House Majority Whip Tom Emmer (R-Minn.) during an interview. “But I have said the president is so upset with the way he’s been treated in terms of lawfare that if he can do something, he does it because he can at this point.”
Emmer pushed back, arguing that it’s “unfair” to frame the issue solely around Trump’s personal grievances. “Americans are upset because they don’t want to see their government be used against anyone, Donald Trump or anybody else,” he said. “And by the way, it was so egregious what they did to Donald Trump and his family. It’s one of the reasons that he’s back in the office. America wants this cleaned up, and Donald Trump is going to make sure it is.”
Kernen went further, labeling the fund a “retribution fund.” Emmer declined to assign a label, urging lawmakers to “find out what it is first before everybody denigrates it.”
Trump defended the fund on Friday via Truth Social, writing that he is “helping others, who were so badly abused by an evil, corrupt, and weaponized Biden Administration, receive, at long last JUSTICE!” He had originally sued the IRS following the leak of his tax returns to media outlets. “I gave up a lot of money in allowing the just announced Anti-Weaponization Fund to go forward,” Trump wrote. “I could have settled my case, including the illegal release of my Tax Returns and the equally illegal BREAK IN of Mar-a-Lago, for an absolute fortune.”
The fund has sparked a revolt among some Republican lawmakers, who, along with Democrats, have labeled it a “slush fund” for Trump allies and participants in the January 6, 2021, Capitol attack. Rep. Brian Fitzpatrick (R-Pa.) told MeidasTouch on Wednesday, “Bad news, we’re going to try to kill it. Well, we’re considering legislative options, we’re going to write a letter to the AG [attorney general] to start. We’re trying to unpack exactly what the legal machinations are.” He and Rep. Tom Suozzi (D-N.Y.) introduced a bill to block federal dollars from being used for any claims submitted to the fund.
Sen. Bill Cassidy (R-La.), who lost his primary bid on Saturday, criticized the fund on social media, saying it is “adding to the national debt. People are concerned about paying their mortgage or rent, affording groceries and paying for gas, not about putting together a $1.8 billion fund for the President and his allies to pay whomever they wish with no legal precedent or accountability.”
The controversy has deepened GOP divisions, with some senators warning that such moves could jeopardize the party’s chances in upcoming elections. For more on the internal GOP strife, see our coverage of Republican senators revolting over the fund amid reconciliation delays here. Meanwhile, Trump has lashed out at critics like Sen. Thom Tillis, calling him a “nitpicker” over the dispute here.
