Why did Todd Blanche scrap Trump's $1.8 billion ‘anti-weaponization fund’ before attorney general confirmation vote?
Acting US Attorney General Todd Blanche has formally terminated President Donald Trump's controversial $1.8 billion "anti-weaponization fund", ending a proposal that had sparked bipartisan criticism
Acting US Attorney General Todd Blanche has formally terminated President Donald Trump's controversial $1.8 billion "anti-weaponization fund", ending a proposal that had sparked bipartisan criticism and become a sticking point in Blanche's Senate confirmation process. The decision comes just days before the Senate Judiciary Committee is scheduled to vote on Blanche's nomination to become attorney general and follows weeks of negotiations with Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina. Here's what happened and why it matters. What was Trump's $1.8 billion anti-weaponization fund? The fund was created as part of a legal settlement between President Donald Trump and the US Justice Department to resolve Trump's $10 billion lawsuit against the Internal Revenue Service (IRS) over the alleged mishandling of his confidential tax records. Supporters argued the fund would compensate individuals they believed had been unfairly targeted by federal authorities. Critics, however, warned that taxpayer money could ultimately benefit Trump's political allies, including people charged in connection with the January 6, 2021, US Capitol riot.
The proposal immediately drew criticism from both Democrats and several Republicans. Why did Todd Blanche terminate the fund? Blanche signed a formal order on Sunday rescinding the Justice Department's May 18, 2026 order that had established the fund. In a statement accompanying the order, the Justice Department said Blanche had repeatedly informed Congress, district courts and lawmakers that the fund would not move forward. The order states that No members were ever appointed to administer the fund. No money was transferred. No claims process was established. No compensation payments were made. The department concluded that the new order "establishes, beyond any doubt, that there is no Fund." How did Senate Republicans influence the decision? The move followed weeks of negotiations with Senators John Cornyn and Thom Tillis, both members of the Senate Judiciary Committee. The two Republicans had refused to support Blanche's nomination until they received a legally binding written commitment that The anti-weaponization fund would be permanently terminated.
The IRS settlement would not provide sweeping protection from future tax scrutiny. Cornyn's office confirmed that an agreement had been reached with the Justice Department before Tuesday's committee vote. What changes were made to Trump's tax audit agreement? The revised order also narrows another controversial provision of the IRS settlement. The original settlement had been criticized for appearing to shield Trump, his family members and his companies from IRS audits involving tax returns filed before May 18, 2026. Blanche's order clarifies that The audit protection applies only retroactively to tax matters covered by the settlement. It does not prevent the IRS from examining future tax filings submitted by Trump or his businesses. The Justice Department said Blanche stood by testimony he delivered before the Senate Judiciary Committee explaining the limited scope of the agreement. What has Trump said? Trump has continued to defend the idea. After the Senate delayed Blanche's confirmation vote last week, Trump suggested he might withdraw Blanche's nomination if Republicans continued blocking it.
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