President Donald Trump indicated on July 30 that he may temporarily withdraw the nomination of Todd Blanche to serve as the next U.S. attorney general amid opposition from Republican senators John Cornyn of Texas and Thom Tillis of North Carolina. The standoff centers on a controversial settlement between Trump and the Justice Department relating to a lawsuit against the Internal Revenue Service (IRS) over leaked tax returns.

Blanche, Trump’s former personal lawyer and current acting attorney general, has faced resistance from Cornyn and Tillis, both of whom are leaving the Senate at the end of this year. The two senators have made clear they will not support Blanche’s confirmation unless the administration provides written assurances that it will formally abandon a nearly $1.8 billion so-called “anti-weaponization” fund and narrow tax audit immunity provisions benefiting Trump, his family, and associated businesses.

The fund was created as part of a settlement resolving Trump’s $10 billion lawsuit against the IRS, which alleged improper disclosure of his tax information. Critics from both parties have derided the fund as a taxpayer-funded “slush fund” potentially rewarding political allies, including individuals linked to the January 6, 2021, Capitol riot. Although Blanche has testified that the fund has been scrapped, Cornyn and Tillis have pressed for a permanent, formal revocation of the settlement’s payout mechanism.

Another significant point of contention involves provisions in the settlement granting broad immunity from tax audits and investigations to Trump and related parties. Cornyn and Tillis have urged the administration to clarify that such protections apply solely to existing audits or claims covered in the lawsuit and should not extend to future filings or investigations. The senators argue this adjustment is necessary to maintain fairness and uphold the integrity of the justice system, a position that has also drawn criticism from Democrats, who label the deal as corrupt and illegal.

After days of negotiations, including a meeting on July 30 involving Blanche, Cornyn, and Tillis, progress appeared limited. Trump publicly expressed frustration on his social media platform, asserting that the senators’ opposition stems from political grievances, noting that he did not endorse their reelection campaigns and claiming credit for their political downfalls. He stated he would be willing to temporarily withdraw Blanche’s nomination and renominate him after the senators leave office in early 2027.

The impasse led Senate Judiciary Committee Chairman Chuck Grassley to postpone a scheduled committee vote on Blanche’s nomination. With Democrats unified in opposition and the committee’s narrow Republican majority threatened by the dissent of Cornyn and Tillis, advancing the nomination without concessions seems unlikely. Both senators have indicated other Republican lawmakers share similar concerns about the settlement, suggesting Blanche’s confirmation faces broader GOP resistance.

Despite the stalled confirmation, Blanche remains empowered to lead the Justice Department as acting attorney general or deputy attorney general, roles he currently holds. Acting officials can serve in these capacities for extended periods while awaiting Senate confirmation or under certain conditions indefinitely.

The dispute highlights growing fissures within the Republican Party as it approaches the November midterm elections, amid concerns about maintaining its Senate majority in a challenging political environment. Cornyn lost his primary earlier this year after Trump’s endorsement of his rival, and Tillis opted not to seek reelection following disagreements with the president. Both have positioned themselves as key figures willing to resist Trump’s influence on certain matters, reflecting ongoing tensions between the president and segments of his party in Congress.