The Trump administration is scrapping plans for a nearly $1.8 billion fund that would have compensated allies of President Donald Trump, Acting Attorney General Todd Blanche told lawmakers Tuesday, retreating from a program that drew fierce political backlash and threatened to stall key parts of the White House agenda.

Blanche Says Fund Will Not Proceed

"We are not moving forward with the fund, period," Blanche said during a House hearing on the Justice Department budget, according to Reuters. Rep. Grace Meng (D-N.Y.) pressed him further, asking, "Not moving forward ever?" Blanche answered, "Correct."

The blunt declaration marked a rare Trump administration reversal in the face of mounting opposition to a fund that officials said was designed to compensate people who believed the criminal justice system had improperly targeted them.

Since officials established the fund on May 18, a judge paused it and Democrats and Republicans criticized it. Lawmakers said they were troubled by limited oversight and by the possibility that people involved in the Jan. 6, 2021, attack on the U.S. Capitol could receive taxpayer-funded payouts.