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Blanche Scraps $1.8 Billion Fund, Unlocking Path to AG Vote

Todd Blanche formally rescinded a proposed $1.8 billion compensation fund, securing support from two Republican senators who had stalled his attorney general nomination. The order narrows but does not end disputes over the broader Trump-IRS settlement.

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Blanche rescinds $1.8B ‘anti-weaponization fund,’ clearing hurdle to AG confirmation

Blanche Scraps $1.8 Billion Fund, Unlocking Path to AG Vote
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A written concession breaks the deadlock

Acting Attorney General Todd Blanche formally killed the Justice Department’s proposed $1.8 billion “Anti-Weaponization Fund” late Sunday, winning support from Republican Sens. John Cornyn and Thom Tillis for his confirmation. Their endorsement clears a key obstacle before the Senate Judiciary Committee’s scheduled Tuesday vote on his nomination to permanently lead the department.apnews +1

The two senators had demanded more than Blanche’s previous assurances that the fund would not proceed. His order says no commissioners were appointed, no money was transferred, no claims process was created and no claims were paid, declaring “beyond any doubt” that the fund does not exist.apnews +1

A disputed settlement remains partly intact

The fund emerged from an unusual settlement of President Donald Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns. The proposed program would have allowed people claiming politically motivated investigation or prosecution to seek compensation, potentially including defendants charged over the Jan. 6, 2021, Capitol attack. Critics argued that the arrangement could direct taxpayer money to the president’s political allies.politico +1

Blanche’s action also narrowed a separate part of the settlement shielding Trump, his family and businesses from tax audits. The Justice Department said that protection applies only retroactively to claims open when the settlement was reached, covers only Trump, two of his sons and the Trump Organization, and does not bar reviews of future filings.apnews +1

The remaining audit provision is still contested. Trump’s lawyers have notified a court that they will appeal a judge’s ruling characterizing the settlement as improper self-dealing, while Democrats say the new order does not prevent Jan. 6 defendants from pursuing compensation through other government claims procedures.pbs +1

Senate leverage delivers a narrow victory

The episode shows how a pair of Republican holdouts could force a written retreat from an administration they otherwise support. The Judiciary Committee postponed an earlier vote after Cornyn and Tillis withheld the votes Blanche needed, and Trump had threatened to revive the fund or resubmit the nomination after both senators leave office.pbs +1

Blanche is not assured final confirmation. NPR reported that Sen. Lisa Murkowski had not committed to supporting him, and a small number of Republican defections could still imperil the nomination in the closely divided Senate.npr But the immediate bottleneck has eased: Cornyn and Tillis now say they will vote to advance him, converting the fund’s formal cancellation into a tangible confirmation gain.apnews