Acting Attorney General Todd Blanche formally rescinded a $1.8 billion "anti-weaponization fund" late Sunday. The decision was aimed at resolving a deadlock in the Senate Judiciary Committee regarding his nomination to serve permanently as attorney general.
The fund originated from a May settlement between President Trump and the Justice Department to resolve a lawsuit Trump filed against the Internal Revenue Service (IRS) over the leak of his tax returns. Lawmakers noted the fund was intended to potentially compensate allies of the president and Jan. 6 rioters, though Blanche stated in writing that no money has been transferred and no claims have been paid.
Senators John Cornyn (R-TX) and Thom Tillis (R-NC) had withheld support for Blanche’s confirmation until they received written assurance that the fund was terminated. Following Blanche’s announcement, both senators issued a joint statement Monday morning confirming they now intend to vote to advance his nomination.
The concrete day-to-day change for the public involves the clarification of tax audit protections. While a May agreement shielded the president, his family, and his companies from tax enforcement on prior returns, the Justice Department clarified Monday that these protections apply only retroactively. This ensures that current or future tax activities for these specific individuals remain subject to standard IRS enforcement. Additionally, the formal order prevents the appointment of directors to manage the fund, effectively stopping the infrastructure for government-funded compensation to the plaintiffs' allies before any checks were issued.
The decision sets a precedent regarding how a president may settle legal disputes with the government they lead. While some legal experts noted the fund could technically be reinstated by a future order, the current written agreement limits the scope of the IRS settlement strictly to the named plaintiffs and the Treasury Department. The Senate Judiciary Committee is scheduled to vote on Blanche’s nomination tomorrow, which will determine if his name moves to the full Senate for a final confirmation vote. What remains unknown is whether other Republican senators, such as Lisa Murkowski (R-AK), will provide the support necessary for Blanche to succeed in the narrowly divided chamber.