Blanche kills Trump's $1.8B fund to save confirmation

Acting Attorney General Todd Blanche on Sunday rescinded the order that created President Trump's $1.776 billion "anti-weaponization" fund, in a bid to break a Senate Republican blockade that has imperiled his nomination. The move, however, stops short of killing the underlying settlement, leaving the fund's fate — and Blanche's confirmation — still uncertain.

What the fund was supposed to do

The fund grew out of a May settlement between Trump and the IRS following lawsuits over the disclosure of his tax records. As part of that deal, the government apologized to Trump and his sons and established a pool of money for individuals who claimed they were victims of government "lawfare." A separate agreement shielded Trump, his family and the Trump Organization from certain IRS claims and audits.

Critics saw the arrangement as an extraordinary use of taxpayer money to reward the president's political grievances. The fund was to be administered by the Justice Department, which Trump controls, prompting accusations that it was designed to compensate allies and punish perceived enemies.

A rescission without a settlement

Blanche's Sunday order nullifies the operational directive that stood up the fund, but it does not modify the settlement itself. Under the agreement's terms, any change requires written consent from Trump, his sons and the Trump Organization — none of whom signed the new order.

At his confirmation hearing last month, Blanche acknowledged that the settlement remains enforceable and that Trump's lawyers could attempt to enforce it or argue the DOJ breached the agreement by refusing to operate the fund. That leaves a legal sword hanging over the department, even as Blanche tries to satisfy his GOP critics.

Limiting the audit protections

Blanche also clarified the sweeping audit protections Trump received. In a statement accompanying the order, he said the protections apply only retroactively and only to the named plaintiffs in the case: Trump, some of his family, and the Trump Organization. The original agreement had extended the shield to any "related or affiliated" individuals, companies or organizations — a far broader scope that senators had flagged as a deal-breaker.

Political calculus on the Hill

The move appears calibrated to win over Republican senators who had threatened to block Blanche's nomination in the Judiciary Committee, where he cannot afford to lose a single GOP vote. Sen. John Cornyn (R-Texas) said through a spokesperson that the new order is part of an agreement with Blanche to "permanently terminating the anti-weaponization fund" and to make clear in a binding written document that the scope of the audit settlement is limited to President Trump and other named plaintiffs.

Sen. Thom Tillis (R-N.C.), the other Judiciary Republican holding out, had not yet announced whether the order would secure his vote. His office, the Justice Department and the White House did not respond to requests for comment, suggesting negotiations are ongoing.

Trump throws a wrench

Blanche's effort was complicated Saturday when Trump threatened to keep him as acting attorney general and revive the fund if confirmation failed. "It will immediately be back on the table, and I will get it done," Trump wrote, underscoring the president's willingness to undermine his own nominee to preserve a political project.

That threat may have actually increased pressure on Republicans to reach a deal: allowing Blanche to remain in an acting capacity would sidestep Senate oversight entirely, while keeping the fund alive in spirit.

A legally fraught path

Federal judges have already cast doubt on the arrangement. U.S. District Judge Kathleen Williams found that Trump's initial lawsuit was an attempt to manipulate the judicial process because Trump controlled both sides of the litigation, though she did not go so far as to rule on whether the settlement is enforceable as a contract. Another judge, Leonie Brinkema, barred the DOJ from operating the fund — a ruling that previewed the legal vulnerability Blanche is now trying to escape.

By rescinding the implementing order, Blanche may be hoping to moot the litigation and convince skeptical senators that the fund is effectively dead. But without a signed settlement amendment, the underlying obligation remains, and a future administration could resurrect it.

What's next

The Judiciary Committee could vote on Blanche's nomination as soon as this week, with Cornyn's support likely locked and Tillis under pressure to fall in line. If confirmed, Blanche would inherit a Justice Department still wrestling with the legal and political fallout of the settlement — including whether the fund can be legally terminated without the president's signature.

For now, Blanche's gambit appears to have bought him a path to a vote. But the substance of the deal — and Trump's ability to interfere — remains far from settled.