Blanche Rescinds $1.8B Fund, Clearing Path for AG Vote

Cover image from theguardian.com, which was analyzed for this article
Acting AG nominee Todd Blanche formally withdrew the $1.8B IRS fund after GOP holdouts demanded written assurances. The move clears a path for his confirmation vote amid ongoing Senate negotiations.
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Monday, August 3, 2026 — Politics
Blanche’s written rescission satisfied the two Republican senators holding up his confirmation by documenting that the $1.8 billion fund would not proceed. The episode illustrates how a single procedural demand can stall a cabinet-level nomination even within the president’s own party.
What outlets missed
Most coverage omitted that the fund was created through a formal May 2026 settlement resolving a $10 billion lawsuit over leaked tax returns, not as a standalone initiative. Several outlets failed to note the second clarifying order that narrowed tax-audit immunity to named plaintiffs only. Few reported that the fund had never become operational, with zero appointments, transfers, or payments made before rescission. The precise language in Blanche’s order referencing prior court representations was often summarized rather than quoted directly.
The Senate Judiciary Committee is set to vote Tuesday on confirming Todd Blanche as attorney general after the acting AG issued a formal order Sunday night ending a $1.8 billion program created through a May 2026 IRS settlement. The move satisfied written demands from two Republican senators who had blocked the nomination.
Senators John Cornyn of Texas and Thom Tillis of North Carolina, both retiring at the end of their terms, had delayed an earlier committee vote. They required documented proof that the fund would not proceed, despite Blanche’s prior testimony under oath and statements to courts that no payments would occur. The Justice Department order states that no members were appointed, no funds transferred, no claims process created, and no payments made.
The fund originated in the settlement of a lawsuit Trump and his sons filed against the IRS after leaks of his tax returns. A second order issued with the rescission limits related tax-audit protections to the named plaintiffs and applies them only retroactively. A Cornyn spokeswoman confirmed the agreement meets the senators’ conditions. Tillis has not yet commented publicly.
President Trump had continued to defend the fund publicly during negotiations, describing it as compensation for individuals whose lives were affected by prior prosecutions. Blanche’s order followed weeks of discussions with committee members and explicitly rescinds the May 18 directive establishing the program.
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