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Acting Attorney General Todd Blanche formally rescinded the Trump administration’s proposed $1.8 billion “anti-weaponization fund” Sunday, marking a significant concession aimed at resolving a Senate standoff that has jeopardized his nomination to become the next U.S. attorney general.
Blanche issued a written order eliminating the proposed compensation fund, which was intended to provide payments to individuals claiming they were politically targeted during the Biden administration. The move followed negotiations with Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina, whose opposition had threatened to block Blanche’s nomination in the Senate Judiciary Committee.
In a statement posted to social media, Blanche said the change resulted from discussions with lawmakers.
“My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions,” Blanche wrote. “We have enjoyed good faith discussions. … The Department always welcomes and appreciates productive engagement with all members of Congress.”
The proposal first surfaced May 18 as part of an out-of-court settlement between the Justice Department and President Donald Trump resolving litigation over the release of Trump’s tax returns by the IRS. The agreement quickly drew bipartisan criticism because it proposed creating the compensation fund while also shielding Trump, his family and affiliated businesses from certain historical tax claims.
Senate Republicans demanded written reversal
Cornyn and Tillis insisted that Blanche’s previous verbal assurances that the Justice Department would not implement the fund were insufficient. Both senators demanded the administration formally eliminate the proposal in writing before agreeing to support his confirmation.
A spokesperson for Cornyn acknowledged the agreement Sunday evening on social media. Tillis’ office did not immediately comment.
Neither senator had publicly committed by late Sunday to voting in favor of Blanche at Tuesday’s scheduled Judiciary Committee vote, though the written order appeared to satisfy the principal concerns each had raised.
In a separate statement, Blanche also clarified that tax protections included in the settlement apply only retroactively and would not prevent future IRS audits involving Trump or his family — another issue Cornyn had cited during negotiations.
Trump repeatedly defended the proposal
The reversal followed several days of mixed messaging from President Donald Trump.
Throughout last week, Trump publicly criticized Cornyn and Tillis for withholding support for Blanche, accusing both senators of opposing the nomination because he declined to endorse their political campaigns.
On Saturday, Trump said he would seek congressional approval for the compensation fund if Blanche’s nomination failed, describing payments as reimbursement for people who had “their lives destroyed,” including participants prosecuted in connection with the Jan. 6, 2021, Capitol attack.
Even hours before Blanche issued Sunday’s order, Trump reiterated aboard Air Force One that he supported compensating those individuals.
“This would be a reimbursement for the pain that they suffered,” Trump told reporters. “A lot of people like it.”
Settlement negotiations remain under scrutiny
Despite rescinding the fund, questions remain about the broader settlement agreement.
The written order issued Sunday bears only Blanche’s signature. It was not immediately clear whether the underlying settlement documents signed by Trump’s legal team had also been amended — a step Cornyn had originally requested.
The White House and Trump’s attorneys did not immediately respond to requests for comment.
The controversy intensified after a federal judge overseeing Trump’s lawsuit criticized the agreement, arguing the legal dispute appeared manufactured because both sides ultimately reported to the president. The judge questioned whether the lawsuit had been used as a vehicle to negotiate favorable terms outside normal judicial review.
Confirmation vote expected this week
Blanche has served as acting attorney general while awaiting Senate confirmation. His nomination is scheduled for consideration by the Senate Judiciary Committee on Tuesday.
Republican leaders hope resolving the dispute over the compensation fund will allow Blanche’s nomination to advance to the full Senate, though lawmakers have not yet confirmed whether sufficient support has been secured.
