Donald Trump has scrapped a plan to award up to US$1.8 billion (NZ$3 billion) in damages to victims of “government weaponisation” under the Biden administration following a potent backlash from Republicans, as well as Democrats who branded it a “slush fund” for Trump’s MAGA allies.

It amounts to a significant backdown from the US president, who said he “gave up a lot of money” to allow the so-called Anti-Weaponisation Fund to go ahead.

The US$1.8 billion (NZ$3 billion) kitty was the product of a legal settlement between Trump, his family and the tax office, after he sued his own government over a leak of his tax records that occurred seven years ago.

But the fund was widely criticised as a mechanism to funnel money to January 6 rioters and other Trump allies who claimed to be victims of lawfare by the Biden administration.

Acting Attorney-General Todd Blanche – who used to be one of Trump’s personal lawyers – confirmed the US government would not proceed with the fund, which had been paused by a court until June 12.