You've got a huge problem because you and your husband disagree. She was probably working on being out of control before she turned 18, and he didn't clamp down on her. No one should be getting trust fund money when they are in high school and just 18 - most trusts hold off until 25 or 30 for that very reason.
Your only option now, if he gives her the money and she moves out, is to cut the cord entirely. Do not pay one single bill, no insurance, no medical coverage, nothing. Don't give her housewares, don't co-sign a lease on an apartment, don't pay for her cell phone. Change the locks to your house so she cannot come and go at will. If your husband wants to see her (or if you do), then meet for dinner at a restaurant (and split the bill) or take a walk in the local nature area or browse at the mall - public places, not in your home.
Put all her possessions in cartons and suitcases, and move everything out into the garage or a storage unit (pay 1 month fee to get everything out of your house and give her the key to the storage unit). Get her name off everything, from bank accounts to safety deposit boxes to everything else related to her trust fund.
She wants to make all her own decisions? Fine. She's 18. She can try to rent an apartment with only a part-time job to list on the "income" part of the form, she can pay all her own insurance and utilities, she can transfer the cell phone bill to her own name and new address. She can shop for furniture or go to yard sales like every other adult. Put in a forwarding order with the post office so all her mail and bills and everything else go to her new address.
She can change her address with the high school so her grades go to her address, not yours. Your husband will have no say over her grades/achievements, and no responsibility for anything like college.
Here's what will happen - she will not be able to get a decent place to live, and even if she does, she will blow through all the money and be broke by graduation. She will be having parties with her friends and getting them all in trouble, which will affect her reputation as well as everyone's study habits. That will incur the anger of the other kids' parents toward her, but she wants to be a grown-up so she can find a way to handle this. Meantime she will not know how to handle some things that come in (insurance forms, for example) and she will either let things slide or she will call her father for help - at which point he should say, "You're an adult, I don't want to tell you what to do. Call your doctor or call your insurance agent or speak to your landlord directly." That's tough love.
Meantime, invite her for Thanksgiving and maybe MAYBE give her some leftover tupperware or placemats to show your "support" for her independent lifestyle, and wish her well. But do not write one check or bail her out of anything.