Acting Attorney General Todd Blanche formally canceled President Donald Trump’s proposed $1.8 billion anti-weaponization fund late Sunday, August 2, in Washington. The written order removes a major Republican obstacle to Blanche’s confirmation as attorney general.
The Senate Judiciary Committee plans to vote Tuesday, August 4, on Blanche’s nomination. Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina had demanded permanent changes before supporting him.
Written order ends fund.
Blanche’s order formally rescinded the fund created on May 18. It declared that the earlier directive “shall have no force or effect.”
The Justice Department had already told lawmakers and federal courts that the program would not proceed. Cornyn and Tillis refused to rely on testimony or informal assurances while the founding order remained active.
The department said no governing members had been appointed and no money had been transferred. It also said no claims were paid before Blanche terminated the program.
That distinction shaped the confirmation fight. Calling the fund inactive left a possible route for revival. Rescinding the order closed that route within the department.
IRS settlement created program
The fund emerged from a settlement involving Trump, Donald Trump Jr., Eric Trump and the Trump Organization. They had sued the Treasury Department and Internal Revenue Service after confidential tax information became public.
The plaintiffs agreed to dismiss their lawsuit with prejudice and withdraw two administrative claims. They were set to receive a formal apology, but no direct damages.
The settlement created a $1.776 billion claims program for people alleging politically motivated federal action. The money would have come from the Judgment Fund, which pays certain federal settlements and judgments.
The proposal drew bipartisan opposition because its potential beneficiaries were not narrowly defined. Critics warned that January 6 defendants could seek payments, including people convicted of assaulting officers at the Capitol.
Trump said the fund would reimburse supporters who suffered through federal cases. Blanche later told senators the program was dead, but Trump’s continued support increased pressure for a binding order.
Republican holdouts forced action.
Cornyn and Tillis sit on the Judiciary Committee, where Republican defections could stop the nomination from advancing. Democrats were expected to oppose Blanche, making both Republican votes important.
The committee postponed an earlier vote after the senators demanded written guarantees. Blanche then met privately with committee members while the department worked on language addressing their objections.
Cornyn’s office said Sunday that it had reached an agreement with the department. The deal required permanent termination of the fund and a narrower interpretation of a separate tax provision.
Tillis had warned that Blanche would not be confirmed if the administration revived the program. He had not immediately announced his final position after Sunday’s order.
Trump criticized both senators during the dispute. He also suggested withdrawing Blanche’s nomination and submitting it again after they leave the Senate.
Tax protections narrowed
The senators also objected to language covering IRS examinations involving Trump, relatives and affiliated entities. They wanted clear limits on which taxpayers and tax periods received protection.
Blanche’s clarification said the provision applies only retroactively. It covers the named parties and existing matters included in the settlement, while future tax filings remain subject to ordinary examination.
Cornyn had made that distinction a condition of his support. His spokesperson described the new language as a binding limit covering only the plaintiffs and the IRS.
The order does not resolve every legal challenge involving the settlement. Trump’s lawyers have moved to appeal a judge’s ruling that criticized the agreement and Blanche’s role in negotiating it.
Blanche has disputed suggestions that his previous work as Trump’s personal lawyer created improper conduct. Courts may still examine the settlement even though the compensation fund no longer exists.
Trump kept proposal alive.
Trump continued defending the fund during the Senate standoff. He said people charged after the January 6 attack had suffered and could deserve reimbursement.
He also said he might ask Congress to create a similar program through legislation. That route would require lawmakers to approve the policy.
The president said Blanche could remain acting attorney general without Senate confirmation. Blanche has led the department since April after serving as deputy attorney general.
Those statements complicated negotiations because senators wanted certainty beyond Blanche’s personal commitment. Sunday’s order provided a formal departmental action that would require another public decision to reverse.
Senate vote set for Tuesday.
The Judiciary Committee’s committee vote is Tuesday at 9 a.m. in the Hart Senate Office Building. Blanche is the nominee listed for consideration.
If the committee approves him, the nomination can move to the full Senate. Leaders could seek a floor vote before senators leave Washington for a five-week recess.
The rescission changes the immediate political calculation but does not guarantee confirmation. Cornyn has confirmed an agreement, while Tillis’ final position remained pending after the order.
Blanche will continue serving as acting attorney general during the process. The next official update is expected when the Judiciary Committee meets Tuesday morning.
