WASHINGTON — Acting Attorney General Todd Blanche issued an order Sunday evening formally rescinding plans to create a $1.8 billion fund meant to compensate allies of President Trump.
Senate Confirmation Standoff Prompts Justice Department Policy Reversal
Acting Attorney General Todd Blanche issued a formal order rescinding the controversial $1.8 billion “Anti-Weaponization Fund”. The fund, originally created in May as part of a settlement agreement stemming from a lawsuit filed by President Trump against the IRS, was designed to provide financial compensation to individuals claiming political persecution.
The sudden policy reversal followed weeks of intense negotiations and pressure from key Republican senators on the Senate Judiciary Committee, clearing a major hurdle for Blanche’s permanent confirmation.
The Core Details of Blanche’s Rescission Order
In an official order released on Sunday evening, Blanche moved to eliminate the legal architecture behind the multi-billion dollar program.
-
Fund Voided: The order explicitly states that the May 18, 2026, order establishing the fund is rescinded and carries “no force or effect”.
-
No Money Distributed: The Justice Department clarified that no members were appointed, no funds were transferred, no claims process was established, and zero payouts were made.
-
Tax Audit Shield Limited: The official document also restricted a separate provision granting broad immunity from future tax audits, clarifying that the safeguard applies only retroactively to prior open claims.
Political Battlegrounds: Senate GOP Holdouts vs. White House Pressures
The future of Todd Blanche’s nomination had stalled heavily in the Senate over disputes concerning executive overreach and government spending.
Why Republican Senators Demanded the Cancellation
Outgoing GOP Sens. Thom Tillis (R-N.C.) and John Cornyn (R-Texas) threatened to block Blanche’s confirmation vote unless the Department of Justice provided a binding, written commitment terminating the fund. Critics and political opponents consistently labeled the initiative a “slush fund” intended to protect political allies, while the White House defended it as a necessary correction for government overreach.
-
The Confirmation Path: Following the formal cancellation order, both Cornyn and Tillis indicated satisfaction with the written terms, paving the way for the Senate Judiciary Committee to advance Blanche’s nomination.
-
Lingering Skepticism: Despite the official cancellation, some legal analysts and ethics watchdogs warn that executive parameters could potentially allow similar mechanisms to be reexamined in the future.
Broader Implications for the Justice Department
With the primary roadblock to his confirmation cleared, Blanche is expected to move swiftly through the final Senate voting stages. However, the intense legislative clash underscores ongoing tensions between Capitol Hill and the executive branch regarding the limits of presidential settlements and control over federal funds.
Comment