Acting AG Blanche rescinds $1.8B anti-weaponization fund in push for confirmation

Acting Attorney General Blanche Rescinds $1.8 Billion Fund Linked to IRS Settlement

Acting Attorney General Todd Blanche appeared before the Senate Judiciary Committee on Capitol Hill in Washington on July 15, 2026.

In a move tied to advancing his confirmation, Acting Attorney General Todd Blanche on Sunday rescinded a Justice Department order establishing a $1.8 billion fund connected to a prior IRS settlement. The action followed statements from two Republican members of the Senate Judiciary Committee who had sought written confirmation that the fund would not proceed.

Blanche stated that the rescission formalized his earlier testimony that the fund would not advance. No members had been appointed to administer it, no funds had been transferred, and no claims had been paid, according to his statement. The fund originated from a May settlement between the administration and the Internal Revenue Service that resolved litigation over the unauthorized disclosure of tax returns. A federal judge had dismissed a related $10 billion lawsuit filed by Trump against the IRS prior to the settlement. The settlement marked the first known instance of a president reaching such an agreement with an agency under his administration.

Blanche said in a statement posted on X that his team had met with committee members and senators in recent weeks. "The Department always welcomes and appreciates productive engagement with all members of Congress," the statement read. The rescission addressed concerns that had delayed Blanche's confirmation hearing, which had been rescheduled for Tuesday. The committee may now advance the nomination to the full Senate.

A spokesperson for Sen. John Cornyn, R-Texas, said the senator had reached an agreement with the Department of Justice. The agreement includes a formal order terminating the fund and limiting the scope of the audit settlement to the plaintiffs and the IRS. Sen. Thom Tillis, R-North Carolina, had indicated he would align with Cornyn's position. Cornyn's spokesperson stated that the order would make clear in a binding written document that the settlement applies only to the named parties.

Both Cornyn and Tillis are retiring from the Senate at the end of the current term. Cornyn lost his primary election in May after Trump endorsed a challenger. Tillis announced his retirement last year following a threat of a primary challenge.

Some legal experts have noted that a future administration could issue a new order to reinstate elements of the fund despite the current rescission. Blanche's nomination could still encounter questions from other Republican senators regarding his prior role as personal counsel to Trump and his public statements on the Jan. 6, 2021, Capitol events. Sen. Lisa Murkowski, R-Alaska, has said she would evaluate the nomination after it clears the committee. In a Senate with a narrow Republican majority, a small number of members could affect the outcome of a confirmation vote.

The IRS settlement resolved litigation stemming from the leak of Trump's tax returns by a contractor who was later convicted in connection with the disclosure. The original lawsuit sought damages related to that unauthorized release.