Sen. Thom Tillis (R-N.C.) has intensified his attacks on the Justice Department's nearly $1.8 billion compensation fund, labeling it a "payout pot for punks" and warning that the initiative is politically disastrous for the GOP. The fund, announced last week by Acting Attorney General Todd Blanche as part of a settlement in President Trump's withdrawn $10 billion lawsuit against the IRS, is designed to offer formal apologies and monetary relief to individuals who claim federal government wrongdoing.

"It makes no sense. So, it's politically tone-deaf," Tillis said Sunday on CNN's State of the Union. He added, "Whoever did it should be fired." The senator's remarks come amid growing bipartisan unease that the fund could be used to compensate individuals convicted for their roles in the January 6, 2021, Capitol attack, including those who assaulted police officers. "Let's figure out a way to help people who are victims of warfare, but not people who were convicted by a jury of their peers or pled guilty to assaulting a police officer, please," he told host Jake Tapper.

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Tillis, who is retiring at the end of his term, has been a vocal critic of the fund since its creation. On Thursday, he called it "stupid on stilts" and later told reporters, "This is bad policy, it's bad timing, and it's bad politics." The criticism has drawn a sharp rebuke from President Trump, who dismissed Tillis as a "nitpicker" in a recent statement. The dispute has widened fissures within the GOP, with House and Senate Republicans divided over the fund's legitimacy and potential impact.

The controversy has also derailed Senate Majority Leader John Thune's (R-S.D.) push to advance a $72 billion immigration enforcement package through budget reconciliation. Lawmakers left Washington on Friday for a nine-day recess without a deal, as the fund dispute consumed negotiations. A closed-door meeting Thursday between GOP senators and Blanche failed to assuage concerns, with Tillis describing the session as tense. "There was a very large number of people that said, 'Look, we got to tackle affordability. We have got to have a coherent strategy in Iran. We have got to start looking at Putin as a real threat to the Western world, and this is all a distraction,'" he recalled.

The DOJ has insisted that "there are no partisan requirements" to file a claim, but lawmakers worry that the fund could become a vehicle for rewarding those convicted in connection with the Capitol riot. Tillis echoed those fears, arguing that only those wrongfully targeted by lawfare—such as a man arrested at a school board meeting and later found innocent—should be eligible. "Help them out. Pay them back," he said. "But this is just horrible politics. It's horrible timing."

The fund's creation has sparked broader scrutiny of the administration's priorities, with Tillis linking it to other pressing issues. He has previously blasted Trump's Iran deal blunders and criticized Defense Secretary Pete Hegseth's war leadership, warning that such distractions undermine GOP chances. In a separate interview, he fired back at Trump, saying, "Stupid stuff is killing our chances." The internal strife has also delayed a $70 billion immigration package, as reported by Senate GOP Delays $70B Immigration Package Over Bitter Fight on Trump's $1.8B Compensation Fund.

As the recess continues, Tillis and other critics are calling for a reassessment of the fund. He acknowledged Sunday that while he has been in tougher meetings, the bipartisan anger was palpable. "There was a very large number of people that said this is all a distraction," he said, urging the administration to refocus on core issues like affordability, Iran policy, and the threat from Russia. The fund's fate remains uncertain, but the political fallout is already reshaping the GOP's legislative agenda.