Senate panel delays Blanche AG vote over IRS settlement demands

Republican senators postponed a scheduled committee vote on Todd Blanche's nomination to become attorney general, citing unresolved questions about a May settlement between the IRS and former President Donald Trump. The Senate Judiciary Committee had planned to advance the nomination Thursday but removed it from the calendar after Sens. John Cornyn of Texas and Thom Tillis of North Carolina raised objections.

The settlement ended a lawsuit in which Trump and his sons sought $10 billion in damages over the leak of their 2019 and 2020 tax returns by a former IRS contractor. In exchange, the agreement halted certain audits of Trump, his sons, and the Trump Organization. It also established a $1.776 billion fund intended to compensate individuals who claimed they were targets of politically motivated enforcement by federal agencies. That provision drew immediate bipartisan criticism and was later blocked by a federal judge.

Blanche, serving as acting attorney general, has described the fund as inactive. Cornyn and Tillis, however, have asked for written commitments that the language cannot be revived and have questioned whether the settlement shields future tax filings from scrutiny. Cornyn has stated that any protections should apply only to existing audits. The Department of Justice provided additional responses to the senators, but those did not satisfy the lawmakers' requests for binding assurances.

The delay reflects standard committee practice when members seek further documentation before a markup. With 12 Republicans and 10 Democrats on the panel, Blanche needs a majority to advance. Democrats are expected to oppose the nomination regardless. A single Republican defection would prevent the nomination from reaching the full Senate.

The episode underscores recurring difficulties in crafting settlements that involve large public expenditures and broad policy changes. Past efforts to create compensation mechanisms for specific grievances have often expanded beyond initial intent or invited legal challenges. Lawmakers from both parties have expressed concern that the anti-weaponization fund could extend eligibility to individuals convicted in connection with the January 6 Capitol events, raising questions about consistent application of federal enforcement.

Blanche's confirmation hearing earlier this month focused on his oversight of the settlement and related Department of Justice actions. Supporters describe him as experienced in navigating complex litigation and committed to restoring public confidence in federal institutions. Critics within the Republican conference argue that clearer documentation is required before granting broad authority over enforcement priorities.

No new vote date has been set. The committee continues discussions aimed at securing enough support to report the nomination favorably. The process illustrates how internal party disagreements over executive branch agreements can slow even favored nominees when senators prioritize written limits on discretionary funds and audit protections.