Trump backs off $1.8 billion slush fund as Iran talks collapse

Jun 01, 2026

Mixed news: Trump dropped an unpopular plan to hand out money, but the Iran conflict is dragging on with no real ceasefire.

  • Trump is walking back a $1.8 billion fund that critics said could have paid January 6 defendants and even his own companies, after a judge and members of his own party pushed back.
  • Iran says it has stopped talking to the US and wants Israel to pull out of Lebanon, stop settler activity, and halt attacks in Gaza before any deal.
  • Trump claims talks are going great and that fighting will stop, but Iran, Netanyahu, and events on the ground all say otherwise.
  • Israeli settlers are still burning olive groves and forces are demolishing Palestinian homes in the West Bank, while Netanyahu says Israel will keep operating in southern Lebanon.
  • Trump told CNBC the negotiations got "very boring" and he doesn't care if they fail, which leaves the US in a weaker spot since Iran can simply wait him out.

Outlook: A shaky ceasefire may hold in patches, but with talks broken off and Israel still fighting, more flare-ups are likely soon.

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