(The Center Square) – An Illinois lawmaker wants to create a law that would allow the state to take any funds paid out to an Illinois resident through the U.S. Department of Justice’s $1.8 billion “Anti-Weaponization Fund,” created as a result of a lawsuit President Donald Trump recently settled with the IRS.
The proposal stems from an exchange on the social platform X between Illinois state Rep. Bob Morgan, D-Deerfield, and New York state Assemblyman and Congressional candidate Alex Bores, D-Manhattan.
Great idea Alex – I will file a bill to do the same in Illinois and see if we can add it to our FY27 budget this week. Jan 6’er slush funds should be 100% taxed – I can think of quite a few health and human services agencies strangled by Trump Admin cuts who’d benefit. https://t.co/vLcfLUn3HB— Bob Morgan (@BobMorganIL) May 27, 2026
On the House floor Wednesday, Morgan told The Center Square the legislation is in the process of being introduced, and he hopes the language can be included in the final state budget.
“The US Department of Justice created what they’re calling the anti-weaponization fund – or as I call it the Jan. 6th and Insurrection Fund,” Morgan said. “Anybody who is enriching themselves by participating in part of an insurrection should definitely be taxed for that potential payout.”
He said the law would tax any payout from the fund to an Illinois resident at 100%, allowing the state to effectively nullify the payout as part of a person’s state income tax return.
According to DOJ-released info on the fund, the ability to apply and receive a payout does not have any partisan requirements, allowing anyone who feels they have been a target of the federal government to apply.
The department does not specify if those assigned to approve claims will pay out to Jan. 6 attendees that have been pardoned by President Trump.
The move to create the federal fund has been criticized at the national level by Democrats and Republicans, leading multiple GOP initiatives to stall in the U.S. Senate last week.
A spokesperson for the Illinois House Republicans – along with multiple Republican lawmakers – all declined to comment on the proposal. The statewide Republican Party did not respond to a request for comment.
Morgan also said the proposal would allow for the state to recoup a portion of the billions in federal funding cuts that he said have impacted the state.
“We are looking for opportunities to make sure our values are reflected in this tight budget,” Morgan said.
When asked if there are any concerns over privacy or the state overstepping, Morgan said he believes state tax law already has mechanisms in place that will require recipients to disclose the funds, though he didn’t specify how the law would single out recipients of these federal funds as opposed to other funds.
Morgan said despite the legislation seeking to collect individual payouts intended for participants in the Jan. 6, 2021 storming of the U.S. Capitol, the law would capture any money disbursed to a resident from the fund.
During media availability Wednesday afternoon, California Gov. Gavin Newsom also announced he wants his state’s legislature to move on the same initiative.
“I suppose that [the fund] could result in family members of the President being enriched. If they’re receiving money from this kind of a fund, then I think that would be taxed,” Morgan said.
The legislation has not yet been introduced in the House, but Morgan said he has hopes that it will be considered by leadership as budget talks continue through the end of the weekend.
