The real reason Todd Blanche won't drop Trump's slush fund

Blanche Nomination as Attorney General Delayed Over Unresolved Settlement Fund

Acting Attorney General Todd Blanche, President Donald Trump’s nominee to lead the Justice Department permanently, has not formally discontinued a $1.8 billion fund established through a settlement of a lawsuit concerning the leak of Trump’s tax returns. The fund was announced by the Justice Department on May 19 as a mechanism to cover legal expenses for individuals facing charges that included fraud and participation in the January 6, 2021, Capitol events. A federal judge later blocked disbursements from the fund. Blanche stated that the administration would not proceed with payments, yet he has not issued a written commitment to terminate the arrangement, which has contributed to delays in his Senate confirmation.

The Senate Judiciary Committee postponed a vote on Blanche’s nomination on Thursday. Senators John Cornyn of Texas and Thom Tillis of North Carolina, both Republicans who are retiring at the end of the year, have indicated they may oppose confirmation unless Blanche provides a formal written assurance that the fund will not be used and that the related agreement granting Trump and his family permanent immunity from certain IRS audits is also rescinded. Tillis told the New York Times that the matter is affecting Republican candidates’ ability to explain the policy to voters and that statements describing the fund as inactive have raised questions about accuracy.

Blanche previously served as deputy attorney general under Pam Bondi before succeeding her in the acting role. Prior to joining the Justice Department, he represented Trump in civil and criminal matters, including a civil case involving allegations of sexual assault and a fraud prosecution. Records reported by ABC News show that Blanche’s law firm received nearly $10 million between March 2023 and December 2024 from a political action committee that had been established to support Republican campaigns.

The fund originated as part of a negotiated resolution to litigation filed by Trump against the federal government over the unauthorized disclosure of his tax returns. Administration officials have described the arrangement as a legitimate outcome of that settlement rather than a new discretionary program. Democrats on the House Judiciary Committee have characterized the fund as a mechanism for directing taxpayer resources to political allies and individuals convicted of crimes. Conservative legal commentator Andrew McCarthy wrote in National Review that Blanche’s reluctance to document the fund’s termination in writing reflects continued interest from the White House in preserving the option.

The Justice Department has made separate payments to individuals who were investigated or convicted in connection with events involving Trump allies. In June, the Washington Post reported that the department approved a payment of nearly $5 million to the family of Ashli Babbitt, who was shot and killed by Capitol Police during the January 6 events. In a separate case reported by the New York Times on Wednesday, a seven-figure payment was made to Paul Vaughn, who had been convicted in 2024 of conspiring to obstruct access to an abortion clinic and was later pardoned by Trump. Vaughn was represented by the Thomas More Society.

Lawyers who have represented January 6 defendants have expressed interest in pursuing claims against the government for alleged wrongful prosecution. Mark McCloskey, an attorney for some of those defendants, told the Washington Post that the legal community viewed the fund as a potential source of compensation even after presidential pardons were issued. Such claims would be subject to judicial review, and any settlements would require approval through established Justice Department procedures.

Groups including the Thomas More Society and Alliance Defending Freedom have participated in high-profile litigation on issues such as abortion access and voting procedures. Funding from government settlements could provide resources for additional cases, though any such use would depend on the outcome of ongoing disputes over the fund’s status.

Cornyn and Tillis have previously supported conservative legal organizations that could potentially receive payments if the fund were reactivated. Tillis linked his position to concerns about midterm election messaging. Senate Majority Leader John Thune stated on Thursday that the nomination could return to the floor as early as the following week once the issues raised by Cornyn and Tillis are addressed. Thune indicated that discussions are focused on documenting the administration’s position regarding the fund.

Blanche’s confirmation process continues to hinge on whether a written commitment is provided before the Senate vote. The underlying settlement that created the fund remains in effect pending further action by the administration or the courts.