Acting Attorney General Todd Blanche has reversed course and formally canceled a multibillion-dollar “anti-weaponization” fund that had become a roadblock to his Senate confirmation. Blanche issued a recent order rescinding the fund and narrowing parts of a related IRS settlement, according to the Associated Press. The change followed talks with two Republican senators who had threatened to block his nomination unless the fund was ended in writing, AP reported.
A spokesperson for Sen. John Cornyn confirmed an agreement with the Justice Department, while Sen. Thom Tillis had not commented, AP reported. The department’s order rescinds an earlier directive that created the fund and said no members were appointed and no funds moved, according to AP. Blanche said the change followed what he described as good-faith discussions. AP reported that a Senate Judiciary Committee was scheduled to consider his nomination.
The fund was tied to the settlement of a lawsuit involving President Donald Trump and the IRS. It drew bipartisan pushback on Capitol Hill after officials suggested people charged in the Jan. 6 attack on the U.S. Capitol could qualify for payments. In a recent appearance before lawmakers, Blanche said the Justice Department would not move forward with the fund, but Cornyn and Tillis insisted the administration put that promise in writing, AP reported.
The Daily Beast reported that Cornyn was backing down after reaching an agreement to terminate the fund, following Blanche’s post on X saying the order had been rescinded. The outlet said the senators wanted an official document given Trump’s public defenses of the concept.
AP reported that Trump said the fund was dead while also arguing it was justified. That prompted Tillis to call for a formal end to the plan and contributed to a delay in committee action earlier in the week, AP reported.
Beyond canceling the fund, the Justice Department’s order also narrows a separate part of the IRS settlement involving tax-audit protections for Trump and his family. AP reported the department clarified those protections apply only retroactively and do not cover future filings. That clarification was a point senators had pressed Blanche to codify before they would consider advancing his nomination.
Blanche’s announcement came just ahead of a planned committee vote, affecting his path to lead the Justice Department. The Daily Beast reported that while Cornyn signaled satisfaction with the deal, it remained unclear where Tillis would land ahead of the vote. AP noted the department had previously told courts and Congress the fund would not proceed before the formal rescission.
Why it matters
This decision removes a controversial multibillion-dollar proposal from consideration and could clear a hurdle for the administration’s nominee to lead the Justice Department. It also narrows a related IRS settlement so it may not cover future tax audits. For taxpayers and voters, it’s a reminder that large federal payouts face scrutiny and that written commitments can shape confirmation fights.