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PoliticsAmerican Politics

‘There is no Fund’: GOP holdouts back Blanche after DOJ scraps proposed $1.8 billion slush fund

By
Mary Clare Jalonick
Mary Clare Jalonick
,
Alanna Durkin Richer
Alanna Durkin Richer
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Mary Clare Jalonick
Mary Clare Jalonick
,
Alanna Durkin Richer
Alanna Durkin Richer
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
August 3, 2026, 4:27 PM ET
Acting Attorney General Todd Blanche appears before the Senate Judiciary Committee on Capitol Hill in Washington.
Acting Attorney General Todd Blanche appears before the Senate Judiciary Committee on Capitol Hill in Washington.AP Photo/Mark Schiefelbein
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Two Republican senators who threatened to block acting Attorney General Todd Blanche’s confirmation to lead the Justice Department said Monday that they will support his nomination, ending an impasse over plans to create a fund to compensate allies of President Donald Trump.

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The endorsement from GOP Sens. John Cornyn and Thom Tillis paves the way for the Senate Judiciary Committee to advance Blanche’s nomination on Tuesday after the Justice Department and lawmakers reached a deal to formally rescind the $1.8 billion “Anti-Weaponization Fund” proposed to settle Trump’s lawsuit against the Internal Revenue Service.

Cornyn and Tillis had refused to back Blanche’s bid for the permanent post without official confirmation killing the fund meant to compensate people who believe they were unfairly prosecuted by the Justice Department. Blanche’s written order, issued late Sunday, came after the days of negotiations between the Justice Department and the Republican senators who are leaving Capitol Hill when their terms end in January.

“We want to express our gratitude to Mr. Blanche and his staff for working with us on this, and we look forward to voting to advance his nomination out of the Senate Judiciary Committee soon,” Cornyn, of Texas, and Tillis, of North Carolina, said in a statement.

DOJ order says ‘beyond any doubt’ that fund is dead

Blanche has repeatedly said that the Justice Department was scrapping plans for the fund, which sparked bipartisan outcry over the possibility that violent rioters who attacked police at the U.S. Capitol on Jan. 6, 2021, could be considered for payments. But skeptical lawmakers said they were concerned that could be revived without a commitment in writing, especially because Trump has continued to defend the idea.

In his order posted on social media late Sunday, Blanche wrote that the department was confirming “beyond any doubt, that there is no Fund.”

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 said. “This order establishes, beyond any doubt, that there is no Fund.”

Cornyn and Tillis had also pressed the Justice Department to limit the scope of a separate piece of the settlement that provided broad immunity for Trump and members of his family from tax audits.

Under the deal, the Justice Department clarified in writing 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. It also makes clear that only the parties that brought the lawsuit — Trump, two of his sons, and the Trump Organization — are covered by the tax agreement.

Cornyn and Tillis said in their statement that they were “pleased” with the concessions made by Blanche.

“From the outset, we were clear that we needed a written document addressing our concerns on the IRS audit agreement and the anti-weaponization fund that included constraining the scope of audit protection by limiting it to the parties of the Settlement Agreement and legally ending the anti-weaponization fund,” they wrote.

Democrats, however, noted that the order rescinding the fund doesn’t stop the Trump administration from compensating Jan. 6 rioters through a previously established process that allows people to file claims for damages if they believed they were wronged by the government.

“This supposed ‘deal’ doesn’t prevent payouts to violent insurrectionists in the future,” Democratic Sen. Adam Schiff said in a social media post. Schiff added that it also “leaves in place a tax-immunity deal that could help Trump skip taxes on the $2.3 billion he made last year, and still leaves it vague who and what is covered.”

Cornyn, Tillis echo GOP colleagues’ concerns as they b

locked Blanche nomination

Blanche’s nomination was thrown into doubt last week after the Judiciary Committee postponed a vote that had been scheduled for Thursday morning as Tillis and Cornyn said they needed more from the administration before they could provide the necessary votes.

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. And on Saturday the president threatened to push forward with the fund if the two Republicans blocked Blanche’s nomination.

On Sunday evening, Trump said that people who had faced charges from the Jan. 6, attack on the Capitol and could have benefited 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.”

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 quickly since taking the reins of the department to promote the Trump administration’s agenda and accelerate investigations into the president’s perceived foes.

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