Blanche Kills Trump's Controversial Fund to Clear His Own Path to Attorney General

2026-08-03

A Late-Sunday Concession Aimed at Two Holdout Senators

Acting Attorney General Todd Blanche moved late Sunday to defuse the biggest obstacle standing between him and Senate confirmation as the nation's next attorney general, formally rescinding a $1.8 billion fund created to compensate people who claimed they were targeted by government "weaponization," including individuals connected to the January 6, 2021 Capitol riot. The move came after Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina threatened to hold up Blanche's nomination unless the fund was killed in writing.

Blanche announced the decision on X, posting two separate orders: one formally terminating the fund itself, and another narrowing the scope of a related arrangement shielding President Trump from further IRS scrutiny. "My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions," he wrote, describing the discussions as conducted in "good faith."

What the Fund Actually Was

The so-called "anti-weaponization fund" originated from a settlement tied to Trump's roughly $10 billion lawsuit against the IRS, filed alongside his son. As part of that settlement, an addendum signed by Blanche in his capacity as acting attorney general established a mechanism intended to compensate people who claimed to have been unfairly targeted by federal agencies. Critics quickly noted that the fund's scope extended to individuals connected to the January 6 riot, turning the settlement into a political flashpoint well beyond its original tax-dispute origins.

Blanche had previously told lawmakers, including in sworn testimony, that the fund was effectively "dead," and the Justice Department had told courts the program was not moving forward. But Cornyn and other holdouts wanted that commitment formalized in a binding written document rather than left as an informal assurance, particularly since the underlying settlement stipulated that any changes required written agreement from all parties involved.

The Order's Language Leaves No Ambiguity

Sunday's order states plainly that the Attorney General's original May 18, 2026 order establishing the fund "is rescinded and shall have no force or effect." It goes further, noting that since the settlement was first announced, no members were ever appointed to run the fund, no money was transferred, no claims process was ever established, and no claims were ever paid. The order concludes that it establishes "beyond any doubt" that no fund exists.

The IRS Immunity Piece Was the Other Sticking Point

Alongside the fund's cancellation, Blanche also clarified the scope of a separate addendum shielding Trump and his family from further IRS audits. Cornyn had specifically wanted written confirmation that the immunity applied narrowly, covering only the plaintiffs named in the original IRS lawsuit and not extending indefinitely to future tax matters. The new language states that the protection applies only retroactively, to claims that were already open at the time of the settlement, and does not shield the president from scrutiny of tax filings going forward. Notably, that narrower interpretation appears to bind the Justice Department's own reading of the deal, but doesn't necessarily bind Trump's personal attorneys or family members in the same way.

Confirmation Now Back on Track

A spokesperson for Cornyn confirmed that the senator had reached an agreement with the Justice Department covering both the fund's termination and the clarified audit language. The concession clears the way for the Senate Judiciary Committee to proceed with a confirmation vote on Blanche's nomination, scheduled for Tuesday, after having been delayed the previous week specifically because of Cornyn and Tillis's objections. Tillis had not issued an immediate comment on the new order as of Sunday night.

Context: A Nomination Under Strain From Multiple Directions

The friction over the fund adds to what has already been a bumpy confirmation process for Blanche, who served as Trump's personal defense attorney during his criminal cases before joining the Justice Department last year as deputy attorney general. Cornyn had indicated earlier in the week that he and the department were largely aligned on a resolution, only for the White House to resist finalizing it once Trump became aware of the terms. Separately, Trump's attorneys notified a court on Friday that they intend to appeal a judge's sharply worded ruling that characterized the original IRS settlement as an improper act of self-dealing, meaning the underlying legal fight over the settlement itself is far from over even as the political fight over Blanche's nomination appears to be resolving.

Sources