Acting Attorney General Todd Blanche has moved closer to Senate confirmation after formally rescinding a controversial $1.8 billion «anti-weaponization fund» and narrowing the scope of tax protections tied to President Donald Trump’s IRS settlement, an agreement that appears to resolve a standoff with two Republican holdout senators.
Sen. John Cornyn’s office confirmed Sunday that an agreement had been reached after Cornyn and Sen. Thom Tillis held up Blanche’s nomination. The arrangement could clear the way for Cornyn to support Blanche when the Senate Judiciary Committee votes Tuesday. Tillis had not publicly commented on the deal as of Sunday night, but he is expected to follow Cornyn after earlier saying the nominee was qualified and expressing hope that the dispute could be resolved by Tuesday.
The committee needs all Republicans to support Blanche because Democrats remain united in opposition. An earlier vote was postponed after the two senators said they wanted a written commitment from the administration.
In his order, Blanche rescinded the May 18 directive that established the fund and clarified that tax-related protections in the settlement apply only retroactively and do not cover future tax filings. The Justice Department said the fund never became operational: no members were appointed, no money was transferred, no claims process was established and no payments were made.
Lawmakers had raised concerns that people convicted in connection with the Jan. 6, 2021, attack on the Capitol could eventually have been eligible for payments. There were also worries that the fund could be revived at a later date, particularly because Trump has continued to publicly back the idea. Cornyn and Tillis insisted on a binding written document to prevent that from happening.
«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 in a post on X. «We have enjoyed good faith discussions, and as a result issue the following order and update with regard to the May IRS settlement. The Department always welcomes and appreciates productive engagement with all members of Congress.»
Cornyn spokesperson Natalie Yezbick said the agreement includes a formal order permanently terminating the fund and a binding written document that limits the scope of the audit settlement to the plaintiffs, including the president, and the IRS. «Sen. Cornyn has reached an agreement with the Department of Justice,» Yezbick said.
Just before the agreement was announced, Tillis had voiced skepticism about Trump’s stated intention to continue pursuing the fund. «Trump clearly intends to resurrect the payout pot for punks either by inappropriately establishing another bogus fund or pushing Congress to vote for a bill that the majority of Republicans in the Senate would be against,» he said. Tillis also said at the time: «It’s unfortunate that Todd Blanche, who I consider qualified for the job, will not be confirmed because of this reversal. Hopefully, we can resolve this by Tuesday.»
Blanche has served as acting attorney general since taking over for Pam Bondi in April. His nomination advanced after weeks of private talks with senators, and Senate Republicans hope to move his nomination forward before the end of the week. The Tuesday committee vote is scheduled as the next major step in his path to becoming attorney general.
