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

Acting Attorney General Todd Blanche issued a formal order late Sunday rescinding the Justice Department’s $1.8 billion anti weaponization fund created in the May IRS settlement. The move came after weeks of pressure from two retiring Republican senators on the Judiciary Committee who refused to advance his nomination without written assurances the program was finished.

Senators John Cornyn of Texas and Thom Tillis of North Carolina had held up the confirmation vote scheduled for Tuesday demanding the fund be terminated on paper. Both had expressed concerns that the program could funnel taxpayer money to individuals prosecuted over the January 6 Capitol riot or other matters they viewed as politically motivated. Blanche’s order states that no members were appointed to administer the fund no money was transferred and no claims were paid.

The fund originated from President Trump’s lawsuit against the IRS over the leak of his tax returns. The settlement also included provisions limiting future IRS audits for Trump his sons and the Trump Organization though Blanche clarified those protections apply only retroactively. Critics in the media immediately labeled the entire arrangement a slush fund while supporters saw it as a necessary counter to years of selective enforcement by federal agencies.

Trump did not hide his frustration with the holdup. He publicly blasted Cornyn and Tillis for blocking Blanche and suggested the matter would return through legislation if necessary. Tillis responded by accusing the president of attempting to resurrect the program through other means and warned it could jeopardize Blanche’s confirmation. Cornyn’s office confirmed an agreement had been reached after the written order.

The episode highlights ongoing tensions inside the Republican conference over how aggressively to confront what many view as entrenched bureaucratic power. Cornyn and Tillis both leave the Senate after this term and their resistance drew sharp pushback from Trump allies who argue the senators are prioritizing process over results. Blanche had already testified under oath that the fund would not proceed yet the written rescission satisfied the remaining objections.

Democrats on the committee remain opposed to Blanche regardless. The Tuesday vote now appears likely to advance the nomination to the full Senate where Republicans hold the majority. Whether the underlying dispute over the IRS settlement lingers beyond confirmation remains uncertain as Trump has signaled he still favors mechanisms to address perceived weaponization.