AUGUST 3, 2026

Todd Blanche rescinds $1.8 billion anti-weaponization fund and narrows IRS tax protections ahead of Senate confirmation vote

Acting Attorney General and attorney general nominee Todd Blanche formally rescinded a $1.8 billion "anti-weaponization fund" — created as part of a settlement of a lawsuit Trump filed against the IRS over leaked tax returns — and clarified that tax-related protections in the settlement apply only retroactively and do not cover future tax filings. The move came ahead of a Senate Judiciary Committee confirmation vote scheduled for Tuesday. Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina had withheld support for Blanche's nomination over objections to the fund.

Blanche posted on X Sunday evening that his team had held "good faith discussions" with committee members over several weeks and that, as a result, he was issuing a formal order permanently terminating the fund and clarifying the scope of the IRS settlement. The fund, established via a May 18 directive, would have used taxpayer money to compensate people who said they had been unfairly targeted by the federal government. According to the Justice Department, the fund never became operational: no members were appointed, no money was transferred, no claims process was established, and no payments were made.

Cornyn's spokeswoman Natalie Yezbick confirmed to Politico that an agreement had been reached with the Justice Department, and said the formal order would make clear in a binding written document that the scope of the audit settlement is limited to the plaintiffs, including the president, and the IRS. The committee had postponed an earlier confirmation vote after Cornyn and Tillis said they needed the commitment in writing, amid concerns the fund could be revived — particularly given that Trump had continued to publicly support the idea. Lawmakers had also raised concerns that people convicted in connection with the January 6, 2021, Capitol riot could be eligible for payments.

As of Sunday night, Tillis had not publicly announced whether Blanche's order was sufficient to secure his vote. Fox News reported that Tillis was expected to follow Cornyn in backing Blanche on Tuesday. Before the agreement was reached, Tillis had said Trump "clearly intends to resurrect the payout pot for punks either by inappropriately establishing another bogus fund or pushing Congress to vote for a bill that the majority of Republicans in the Senate would be against." The committee requires all Republicans to support the nomination in order to counter unified Democratic opposition.