Blanche rescinds fund for Trump allies after GOP senators threaten to
block his attorney general bid
[August 03, 2026]
By MARY CLARE JALONICK and ALANNA DURKIN RICHER
WASHINGTON (AP) — Acting Attorney General Todd Blanche issued a formal
order late Sunday terminating President Donald Trump’s $1.8 billion
“anti-weaponization fund” to compensate his political allies, a move
that follows weeks of negotiations with two Republican senators who were
blocking his nomination to become attorney general.
A spokeswoman for Texas Sen. John Cornyn, one of the senators holding up
Blanche’s nomination, confirmed the deal, which comes ahead of a Tuesday
confirmation vote for Blanche’s nomination in the Senate Judiciary
Committee. The other GOP senator, North Carolina Sen. Thom Tillis, did
not have immediate comment.
Blanche said at a June hearing that the Justice Department would not
move forward with the fund to compensate those who believe they were
unfairly prosecuted, as he faced bipartisan outrage over the possibility
that violent rioters who attacked police at the U.S. Capitol on Jan. 6,
2021, could be considered for payments. But Cornyn and Tillis, both
members of the Judiciary panel, have said they wanted to see the promise
in writing before they endorsed Blanche's nomination — especially as
Trump continued to express support for the idea.
In a statement, Blanche said the order came after “good faith
discussions.”
“My team and I have met with committee members and Senators over the
past several weeks and addressed any concerns or outstanding questions,"
Blanche said.
DOJ order says ‘beyond any doubt’ that fund is dead
In a statement accompanying the order, the Justice Department said that
“although the Acting Attorney General has repeatedly advised Congress
through testimony, including under oath, as well as in written
responses, that the Fund is not moving forward, and the Department has
repeatedly represented to district courts that the Fund is not moving
forward, today’s Order officially rescinds the May 18, 2026 Order.”
Since the settlement of the president's lawsuit against the IRS was
announced, “No Members were appointed; no funds were transferred; no
process for receiving claims was established; no claims were paid,” the
order says. “This order establishes, beyond any doubt, that there is no
Fund.”
The document released by Blanche on Sunday night also limits the scope
of another provision of the settlement that provided broad immunity for
Trump and members of his family from tax audits.
The deal clarifies that the tax audit immunity agreement “applies by its
terms only retroactively” to claims open at the time of the settlement
and does not protect the president from examination of future tax
filings.
Cornyn, Tillis echo GOP colleagues' concerns as they block Blanche
nomination
Cornyn, who lost reelection this year after Trump endorsed his primary
opponent, and Tillis, who is retiring when his term ends in January,
have blocked Blanche's nomination as many of their GOP colleagues have
criticized the fund.
The Judiciary Committee postponed a vote on Blanche’s nomination that
had been scheduled for Thursday morning after Tillis and Cornyn said
they needed more from the administration before they could provide the
necessary votes.
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Acting Attorney General Todd Blanche appears before the Senate
Judiciary Committee on Capitol Hill in Washington, July 15, 2026.
(AP Photo/Mark Schiefelbein, File)
The two senators have repeatedly said the Justice Department seemed
interested in reaching an agreement, but the White House wouldn’t
budge even to aid the confirmation of Trump’s loyal former personal
attorney, who has aggressively pursued the administration’s
priorities as acting attorney general.
“I think as far as Blanche and the Department of Justice, we were
pretty much on the same page,” Cornyn said Thursday. “But then when
the president got wind of it, he wasn’t willing to go along with
it.”
Blanche, who served as Trump’s defense lawyer in his criminal cases,
entered the Justice Department last year as deputy attorney general.
He was elevated to the top post after Pam Bondi was fired in April
by Trump, who was frustrated by her failure to successfully
prosecute his political enemies.
Though Blanche insisted he wasn’t auditioning for the permanent job,
he has moved aggressively to pursue the Trump administration’s
agenda and accelerate investigations into the president’s perceived
foes.
Trump continues to express support for his settlement
The two sides have been negotiating for weeks, but Trump has said
repeatedly during the talks that he thinks the fund should go
forward and threatened to move forward with it if Blanche was not
confirmed.
After the Thursday vote was delayed, Trump said in a social media
post that he might pull Blanche’s nomination and resubmit it after
Cornyn and Tillis leave office next year.
On Sunday evening, Trump said that people who had faced charges from
the Jan. 6, 2021, attack on the Capitol and could have benefitted
from the fund had “their lives destroyed.”
“This would be a reimbursement for the pain that they suffered,”
Trump said. “A lot of people like it.”
On Friday, Trump’s attorneys notified a court they would appeal a
judge’s scathing ruling that characterized the settlement of the
president’s lawsuit against the IRS as an improper exercise in
self-dealing. The judge in her order last month referred one of
Trump’s attorneys for potential disciplinary action and criticized
Blanche’s involvement in the settlement, given his prior
representation of Trump.
Blanche has said he disagrees “with the judge’s insinuations” about
him. Justice Department lawyers had previously written in court
papers that the fund was not moving forward but they refused a
judge’s request to have Blanche and other administration officials
file a declaration under penalty of perjury that the administration
would not take any further action to create the fund.
The Justice Department said the court’s demands were “unnecessary.”
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