Acting U.S. Attorney General Todd Blanche has formally rescinded a controversial $1.8 billion fund linked to former President Donald Trump, clearing the way for his confirmation by the Senate Judiciary Committee. The fund, dubbed the "anti-weaponisation" fund, was established as part of a legal settlement resolving Trump’s $10 billion lawsuit against the Internal Revenue Service (IRS) over the alleged mishandling of his tax records.
Blanche, who has served as acting Attorney General since April following Trump’s dismissal of Pam Bondi, faced opposition from key Republican senators John Cornyn of Texas and Thom Tillis of North Carolina. Both had threatened to block Blanche’s permanent appointment unless the fund was terminated and assurances were provided regarding the scope of a related tax audit settlement.
The fund was criticized by opponents as a potential slush fund channeling taxpayer money to Trump's political allies, including individuals involved in the January 6, 2021, Capitol riot. Supporters argued the fund was designed to compensate those they contend were unfairly targeted by federal investigations.
In a written order released shortly before the Senate Judiciary Committee vote, Blanche formally ended the fund. The order also clarified that the accompanying settlement, which limited IRS audits of Trump and his family, applies retroactively only to cases open at the time of the settlement. It specifically leaves open the possibility for audits of future tax filings.
Senators Cornyn and Tillis, who had repeatedly clashed with Trump in recent years, expressed satisfaction with the binding order and confirmed they would support advancing Blanche’s nomination out of committee. “We are pleased that the Department of Justice has issued a formal order terminating the anti-weaponisation fund,” their joint statement said. They also noted that the audit settlement's scope was now clearly limited to the specific parties involved in the lawsuit, addressing concerns raised by several Republican colleagues.
Despite Trump's recent public statements declaring the fund dead, he reiterated over the weekend that Blanche would remain acting Attorney General if not confirmed and said he would seek Congressional approval to codify the fund in law. Tillis had signaled earlier that Blanche’s confirmation was unlikely without a clear resolution but hoped an agreement could be reached in time for the August 4 committee vote.
The legal settlement and the creation of the fund had drawn scrutiny from a federal judge overseeing the case, who criticized the Justice Department for what appeared to be a failure to defend the government in good faith, describing the arrangement as possibly engineered to benefit the former president.
Blanche’s confirmation vote is expected to proceed following the resolution, with the vote seen as a key step in stabilizing leadership at the Justice Department amid ongoing political tensions.