Acting U.S. Attorney General Todd Blanche rescinds 'anti-weaponization' fund

Acting U.S. Attorney General Todd Blanche issued a formal order late Sunday terminating a controversial fund designed to compensate political allies, according to reporting by Los Angeles Times.

The decision to rescind the financial vehicle, originally established as part of a settlement in a lawsuit against the Internal Revenue Service, removes a major roadblock ahead of a scheduled vote by the Senate Judiciary Committee. According to Krcu, the $1.8 billion fund had faced intense bipartisan scrutiny and fierce opposition from key lawmakers who demanded binding written assurances that the proposal was dead before they would advance the nominee.

Media additions

Blanche rescinds $1.8

The underlying legal settlement followed a lawsuit filed by President Donald Trump over the leak of his tax returns, which culminated in a deal that critics derided as a political slush fund. In defense of the concept, Trump told reporters aboard Air Force One on Sunday evening that individuals caught up in the Capitol riot had their lives destroyed and that the money would serve as reimbursement for the pain that they suffered, as noted by Los Angeles Times.

Negotiations and Senate Deadlock

The formal termination order followed weeks of strained negotiations between the Justice Department and outgoing Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina. Both lawmakers sit on the Senate Judiciary Committee and had withheld their support, successfully forcing a delay of a committee vote that had been initially planned for Thursday morning.

Natalie Yezbick, a spokesperson for Senator Cornyn, confirmed the breakthrough in a statement quoted by KRCU, stating that the agreement permanently terminates the fund and restricts the scope of related tax audit immunities.

"Sen. Cornyn has reached an agreement with the Department of Justice, which will be issuing a formal order permanently terminating the anti-weaponization fund and making clear in a binding written document that the scope of the audit settlement is limited to only the plaintiffs, including the President, and the IRS."

Natalie Yezbick, Spokesperson for Senator John Cornyn, via KRCU

Senator Cornyn remarked on Thursday that while he and the Justice Department were largely aligned, the White House initially resisted concessions, according to Los Angeles Times. President Trump had previously signaled that if Blanche were not confirmed, he might pull the nomination and resubmit it after Cornyn and Tillis leave office next year, as Cornyn lost his primary election following a presidential endorsement and Tillis announced his retirement.

In his official statement distributed via social media, Blanche emphasized that the administration engaged in productive talks with Capitol Hill. My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions, Blanche said, according to Scripps News. The accompanying Justice Department document added that No Members were appointed; no funds were transferred; no process for receiving claims was established; no claims were paid, concluding that the new directive establishes beyond any doubt, that there is no Fund.

Tax Audit Limits and Legal Pushback

Beyond terminating the monetary fund, Sunday night's order also restricts another controversial component of the original IRS settlement: broad tax audit immunity for the president and his family members. According to Los Angeles Times, the updated text clarifies that the audit protections apply strictly to claims open retroactively at the time of the original May settlement, leaving future tax filings fully subject to standard IRS examinations.

The developments arrive amid broader legal friction surrounding the underlying settlement. As reported by Scripps News, lawyers for the president notified the court on Friday that they intend to appeal a federal judge's scathing ruling that characterized the IRS settlement as an improper exercise in self-dealing.

Despite the administration's new binding directives, some legal experts quoted by KRCU have cautioned that a future administration or a subsequent order could theoretically seek to reinstate similar plans. Furthermore, additional hurdles remain for Blanche's confirmation within the tightly controlled chamber, as other Republican lawmakers—such as Alaska Senator Lisa Murkowski—have indicated they intend to fully evaluate his nomination independently, according to KRCU.

What to Watch Next

• Tuesday: The Senate Judiciary Committee is scheduled to hold its delayed confirmation vote on Todd Blanche's nomination for attorney general.
• Full Senate Vote: Should Blanche clear the committee hurdle, his nomination will advance to the full Senate floor for a final confirmation vote amidst a packed legislative agenda before the upcoming mid-September recess.
• Judicial Proceedings: Federal court appeals regarding the underlying IRS settlement and related attorney conduct reviews continue to progress in parallel.