Todd Blanche Moves Closer to Confirmation After Killing $1.8 Billion Fund—But Trump May Not Be Ready to Let It Go
Acting Attorney General Todd Blanche has taken the most dramatic step yet to rescue his stalled nomination.
Late Sunday, Blanche formally terminated a controversial $1.8 billion “anti-weaponization fund” that had threatened to destroy his chances of becoming the permanent head of the Justice Department.
The decision immediately moved him closer to Senate confirmation.
But it also exposed a remarkable confrontation inside the Republican Party—one involving President Donald Trump, billions of dollars in taxpayer money, protections from future tax scrutiny and two Republican senators who refused to fall in line.
For weeks, Blanche had insisted that the fund would never become operational.
That was not enough.
Senators wanted the promise in writing.
Now they finally have it.
The Justice Department’s new order declares that the fund is dead, no money was transferred and no claims were ever processed. The move came just before a crucial Senate Judiciary Committee vote expected Tuesday.
The question is whether Blanche’s last-minute retreat will be enough to secure the votes—or whether the controversy has already revealed deeper problems that cannot be erased with one signed document.
The Fund That Nearly Stopped Blanche’s Nomination
The $1.8 billion fund was created as part of a settlement involving Trump’s lawsuit against the Internal Revenue Service.
Trump had sought approximately $10 billion over the unauthorized disclosure of his tax information. The resulting agreement included a plan to establish what supporters called an “anti-weaponization fund.”
The stated purpose was to compensate people who claimed they had been unfairly targeted by the federal government.
But critics saw something very different.
They feared the fund could become a massive pool of taxpayer money distributed to Trump allies—including people connected to the January 6, 2021, attack on the U.S. Capitol.
That possibility triggered opposition not only from Democrats, but also from Republicans who worried about the lack of congressional oversight and the appearance that the administration was creating a compensation system for its political supporters.
The controversy became especially dangerous for Blanche because he had once served as Trump’s personal defense attorney.
Critics questioned whether he could independently supervise a settlement that directly benefited his former client and potentially Trump’s political allies.
Two Republicans Refused to Approve Him
Blanche’s nomination could not advance without unified Republican support on the Senate Judiciary Committee.
Texas Senator John Cornyn and North Carolina Senator Thom Tillis became the decisive holdouts.
Both men said they wanted formal guarantees that the fund would be permanently eliminated.
They were not satisfied with public testimony, informal assurances or Justice Department statements saying the plan was unlikely to move forward.
Their demand was simple:
Put it in writing.
The dispute forced Judiciary Committee Chairman Chuck Grassley to postpone a scheduled confirmation vote. With Democrats expected to oppose Blanche, losing even one or two Republican votes could have blocked the nomination in committee.
That placed Blanche in an extraordinary position.
To become attorney general, he had to formally dismantle a proposal still supported by the president who nominated him.
Blanche Finally Signs the Order
On Sunday evening, Blanche issued the document Cornyn and Tillis had demanded.
The order formally rescinded the May 18 directive that created the fund.
The Justice Department said no board members had been appointed, no claims process had been created, no money had been transferred and no payments had been made.
The department stated that the new order established “beyond any doubt” that the fund no longer existed.
Blanche said the decision followed weeks of good-faith discussions with senators and committee members.
Cornyn’s office confirmed that an agreement had been reached with the Justice Department, providing the clearest sign yet that Blanche may now have enough support to advance.
Tillis had not immediately issued a final endorsement, but he had previously described Blanche as qualified and suggested the dispute could be resolved if the administration provided stronger guarantees.
The confirmation is not complete.
But the biggest obstacle may have been removed.
The Tax Provision Was Almost as Controversial
The $1.8 billion fund was not the senators’ only concern.
The IRS settlement also contained language that appeared to shield Trump, members of his family and related businesses from certain tax audits or claims.
Cornyn and Tillis worried that the provision could be interpreted too broadly—potentially protecting future tax filings rather than merely settling existing disputes.
The Justice Department’s new documents clarify that the protection applies only retroactively to matters open when the agreement was signed.
They do not prevent the IRS from examining future filings.
That clarification may be politically as important as eliminating the fund itself.
The original language had fueled accusations that Trump had used presidential power to obtain unusually broad protection from tax enforcement.
Blanche and the department deny wrongdoing, but the settlement has already faced harsh judicial criticism.
A federal judge characterized aspects of it as improper self-dealing and questioned Blanche’s involvement because of his earlier representation of Trump. One of Trump’s attorneys was also referred for possible disciplinary review.
Trump Still Supports the Idea
Blanche’s formal reversal does not mean Trump has abandoned the concept behind the fund.
Trump has continued to argue that people who were unfairly prosecuted or targeted by the government deserve compensation.
He has reportedly suggested that Congress could recreate the program through legislation, even if the Justice Department’s version has now been terminated.
That creates an unusual political contradiction.
Blanche is asking senators to believe that the fund is permanently dead.
The president who nominated him continues to praise the underlying idea.
Republican senators may therefore wonder whether the administration could attempt to revive the proposal under a different name or through another legal mechanism.
The written order addresses the existing Justice Department fund.
It cannot prevent Congress from passing a future compensation law.
Nor can it prevent Trump from continuing to pressure lawmakers to pursue one.
Why the Fund Alarmed Republicans
The strongest concerns were not simply about the amount of money.
They were about who would control it and who might receive it.
A $1.8 billion federal program would normally require clear eligibility standards, congressional authorization, oversight procedures and an appeals process.
Critics argued that the proposed fund lacked adequate safeguards.
They feared political appointees could decide which people had been victims of government “weaponization,” creating a system vulnerable to favoritism.
The possibility that January 6 defendants or rioters who attacked police officers might seek compensation made the proposal even more explosive.
Blanche told senators during a June hearing that the fund would not proceed amid bipartisan outrage.
But because Trump kept defending the idea, Cornyn and Tillis refused to rely solely on that testimony.
Their resistance demonstrated that Trump does not always control every Republican vote—especially when senators believe constitutional authority or taxpayer money is at risk.
Is Blanche Now Guaranteed Confirmation?
No.
The Senate Judiciary Committee must still vote on his nomination, and the full Senate would then need to confirm him.
Democrats remain broadly opposed.
They are expected to focus on Blanche’s past representation of Trump, his role in the IRS settlement and his actions as acting attorney general.
But the arithmetic has improved considerably.
If Cornyn supports Blanche and Tillis joins him, the nomination could move out of committee with Republican votes.
That would place enormous pressure on the rest of the Republican conference to approve Trump’s nominee on the Senate floor.
Trump has already indicated that he could keep Blanche in the acting position if confirmation fails, although such a strategy could invite further legal and political challenges.
The formal rescission therefore does more than eliminate a controversial program.
It removes the most visible justification Republican senators had for blocking Blanche.
A Victory for Oversight—or a Political Retreat?
Blanche’s supporters may present the decision as evidence that he listened to legitimate concerns and negotiated responsibly with senators.
Critics will describe it as a humiliating retreat forced by members of his own party.
Both interpretations contain some truth.
The Justice Department had repeatedly said the fund was not moving forward.
Yet it did not formally terminate the plan until Blanche’s confirmation was in serious danger.
That timing makes it difficult to separate the policy decision from the political pressure.
Without Cornyn and Tillis blocking the nomination, the formal order may never have been issued.
The Real Test Comes Next
Todd Blanche is now closer to becoming attorney general than he was just days ago.
But the controversy will follow him.
Senators will want to know whether he can act independently when Trump’s personal interests conflict with the Justice Department’s responsibilities.
They will also watch whether the administration attempts to recreate the compensation plan elsewhere.
The $1.8 billion fund may be dead on paper.
The political idea behind it is not.
Blanche’s confirmation now depends on convincing Republicans that his written promise is stronger than Trump’s continuing support for the proposal.
And even if he wins the vote, Americans may still be left with one disturbing question:
May you like
Was this fund eliminated because the Justice Department concluded it was wrong—or only because Todd Blanche could not become attorney general while it remained alive?
Did Republican senators protect taxpayers by forcing Blanche to kill the fund, or did they surrender too quickly after receiving a written promise? Share your opinion in the comments.
