Acting attorney general Todd Blanche formally withdrew President Donald Trump’s $1.8 billion anti-weaponization fund on Sunday night, ending a standoff with two Republican senators that had stalled his confirmation to lead the Justice Department on a permanent basis.
The move clears the way. Blanche had been blocked by Senators John Cornyn of Texas and Thom Tillis of North Carolina, who demanded written assurances the controversial fund was dead rather than relying on his verbal promises. The Senate Judiciary Committee is scheduled to vote on his nomination Tuesday, and the withdrawal may now allow the nomination to advance to the full Senate floor.
The fund and its origins
The proposed fund was announced earlier this year as part of a settlement between Trump and the Internal Revenue Service over the leak of his tax returns. A federal judge had dismissed a $10 billion lawsuit Trump filed against the IRS ahead of the settlement, which marked the first known instance of a president reaching such a deal with the government he leads. The $1.8 billion fund would have allowed Trump allies to claim compensation for what they described as politically motivated prosecutions by previous administrations, including people prosecuted over the US Capitol riot on January 6, 2021. Democrats and some Republicans raised alarms, arguing it could result in payments to those convicted of assaulting police officers.
A federal judge also blocked the fund and expressed concerns that it breached ethical guidelines. Blanche abandoned the plan following the backlash. But the Justice Department had resisted formally confirming its termination in writing, which drew concern from lawmakers who feared the fund could be revived, especially after Trump expressed continued support for the idea.
The holdouts and the deal
Cornyn and Tillis were the key holdouts. Both senators, whose terms expire in January, wanted the scope of a separate provision narrowed. That provision shielded the president, his family, and their businesses from IRS audits of past tax returns. A Cornyn spokesperson told CBS News that the senator had reached an agreement with the Department of Justice. The spokesperson, Natalie Yezbick, said the agreement would be issued as a formal order permanently terminating the anti-weaponization fund and making clear in a binding written document that the audit settlement is limited to only the plaintiffs, including the President, and the IRS.
Tillis did not immediately comment. He previously said he would follow Cornyn’s lead. In his most recent comments, Tillis expressed concern that the president was still harboring a plan to set up a “payout pot for punks.” He called the political impasse unfortunate but said he considered Blanche qualified for the attorney general job.
In a post on X late Sunday, Blanche said his team had met with committee members and senators over the past several weeks and addressed any concerns or outstanding questions. “We have enjoyed good faith discussions, and as a result issue the following order and update with regards to the May IRS settlement,” Blanche said. The written order states plainly: “This Order establishes, beyond any doubt, that there is no Fund.” The order officially rescinds the May 18, 2026 Order and says that no members were appointed to direct the fund, no funds were transferred, and no claims were paid. The document also limits the tax audit immunity to the named parties in the lawsuit: Trump, his sons Donald Jr and Eric, and the Trump Organization. The immunity applies only retroactively to claims open at the time of the settlement and does not protect the president from examination of future tax filings.
Trump himself gave conflicting signals. On Friday, he said the fund was dead. He subsequently threatened over the weekend to put the plan back on the table if members of his party did not move to approve Blanche. He also said he was considering withdrawing Blanche’s nomination because the process was stalled. The contradictory statements heightened lawmakers’ concerns.
Both Cornyn and Tillis will leave their Senate seats at the end of the current term. Cornyn lost his primary for re-election after Trump endorsed his GOP challenger Ken Paxton. Tillis announced his retirement after Trump threatened him with his own primary challenger. Cornyn said he was not the only Republican in his conference who wanted to ensure there was an end to the fund, as many argued it would hurt them politically ahead of the midterm elections and give Democrats an edge to take back the Senate majority.
Some legal experts have argued that despite the written agreement, the fund could be resurrected in the future with a new order reinstating the plan. Blanche could still face concerns from other members of the Senate Republican conference. Senator Lisa Murkowski of Alaska has said she still needed to fully evaluate Blanche’s nomination once it makes it out of committee. In a tightly controlled GOP chamber, a handful of Republicans could derail any plan.