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On the Hill

Trump Signals Possible Withdrawal of Blanche Nomination Over IRS Settlement Dispute

President Trump indicated he may withdraw Todd Blanche’s nomination for attorney general rather than accept settlement changes requested by GOP senators.

Sourced from Politico
Published August 1, 2026 at 7:40 PM EDT
Trump Signals Possible Withdrawal of Blanche Nomination Over IRS Settlement Dispute

The Facts

Who
President Donald Trump, Todd Blanche, Sen. John Cornyn (R-TX), and Sen. Thom Tillis (R-NC).
What
President Trump's response to Republican senators' demands regarding the nomination of Todd Blanche for Attorney General.
When
July 30 and 31, 2026
Where
Washington, D.C.
Why
Senators are blocking the DOJ nominee to force changes to a $1.8 billion IRS settlement fund and presidential audit immunity.

Timeline of what happened

Key dates and decisions, in the order they occurred.

  1. May 1, 2026

    Trump and IRS reach settlement agreement involving $1.8 billion fund.

  2. July 30, 2026

    Trump signals potential withdrawal of Blanche nomination on Truth Social.

  3. July 30, 2026

    Sens. Cornyn and Tillis meet with Blanche to discuss settlement revisions.

President Donald Trump stated Thursday that he would consider withdrawing the nomination of Todd Blanche for Attorney General rather than agree to conditions set by two Republican senators. Sens. John Cornyn (R-TX) and Thom Tillis (R-NC) have withheld support for Blanche, seeking changes to a May settlement between the president and the Internal Revenue Service (IRS). Trump indicated on social media that Blanche would remain as acting attorney general regardless of the confirmation's progress.

The dispute centers on a settlement agreement that includes a $1.8 billion "anti-weaponization fund" and audit immunity for the president’s family and business. Cornyn and Tillis, both of whom are leaving office at the end of the year, have asked for the fund to be permanently discontinued and for the audit terms to be restricted. Trump suggested he might resubmit Blanche’s nomination in January after the two senators have completed their terms.

Cornyn and Tillis met with Blanche on Thursday afternoon to discuss potential revisions to the settlement. A person familiar with the meeting described the interaction as collaborative. However, Sen. Lisa Murkowski (R-AK) stated she shares the concerns regarding the settlement and has requested that Blanche provide his commitments to changes in writing before she considers his confirmation.

The core of the disagreement involves $1.8 billion in federal funds. According to Cornyn and Tillis, the proposed "anti-weaponization fund" could be used to provide payments to the president's political allies, including those convicted in relation to the Jan. 6, 2021, Capitol riot. For the average taxpayer, this represents a dispute over approximately $14 per American household in federal settlement funds. The outcome will determine whether these billions are redirected to specific individuals or remain in the general treasury, and whether a sitting president can maintain immunity from IRS audits for their private businesses.

The outcome of this confirmation battle will set a precedent for how much control the executive branch can exert over IRS settlements involving the president's personal finances. If the nomination is delayed until January, the political landscape of the Senate may change following the November midterms, potentially altering the vote count required for confirmation. A final decision on the nomination or a revised settlement agreement is expected before the current congressional session ends in December 2026.

This story was rewritten from reporting at Politico. Read the original for full detail.

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