Blanche wins backing from 2 key GOP holdouts after rescinding anti-weaponization fund

In a push to move his confirmation to the role forward, acting Attorney General Todd Blanche late Sunday formally rescinded the Justice Department's controversial $1.8 billion "anti-weaponization fund."

The Trump administration's effort to potentially compensate allies of the president and Jan. 6 rioters was holding up Blanche's confirmation on the Senate Judiciary Committee. Two members of the panel who are both leaving Congress — John Cornyn of Texas and Thom Tillis of North Carolina — said they wanted written assurances the fund was dead.

The announcement appeared to appease their concerns, as the two senators released a statement on Monday saying they "look forward to voting to advance his nomination out of the Senate Judiciary Committee soon."

With the rescindment, Blanche said he was formalizing in writing his testimony before the committee that the fund would not move forward. He said that no members were appointed to direct the fund, no funds were transferred and no claims were paid in connection with the effort tied to the May deal with the Internal Revenue Service.

In a second, unsigned statement, the Justice Department clarified the scope of audit protections announced in May that shielded Trump, his family and his companies from any tax audits or enforcement for prior tax returns. The statement said those protections only apply retroactively.

"My team and I have 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 in a statement on X. "The Department always welcomes and appreciates productive engagement with all members of Congress."

The fund was created as part of a settlement between the president and his own Justice Department to resolve a case brought by Trump against the Internal Revenue Service. Trump had previously sued over the leak of his tax returns, and a federal judge this year dismissed a $10 billion lawsuit Trump filed against the IRS ahead of the settlement. It was the first known instance of a president reaching such a settlement with the government he leads.  

The fight over the fund has held up Blanche's nomination for Attorney General on the Senate Judiciary Committee. The committee had planned to vote on the nomination last week, but delayed that vote to tomorrow to work through the deadlock over the anti-weaponization fund.

In their statement, Cornyn and Tillis expressed gratitude to Blanche for working to address their concerns.

"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.

 "We are pleased that the Department of Justice has issued a formal order terminating the anti-weaponization fund. Additionally, the Department has acknowledged in a binding written order that the audit settlement is limited to the plaintiffs and the scope does not extend beyond the defendants in the lawsuit, the IRS and the Treasury, addressing concerns that multiple of our Republican colleagues share."

Both Cornyn and Tillis will leave their Senate seats at the end of the current term in large part thanks to Trump. In May, Cornyn lost his primary for re-election after Trump endorsed his GOP challenger Ken Paxton. Last year, Tillis announced his retirement after Trump threatened him with his own primary challenger.

In the fight over the fund, Cornyn said he wasn't the only Republican in his conference who wanted to ensure it was scrapped. Many argued it would hurt them politically ahead of the midterm elections, and give Democrats a potent attack against the GOP as they look to take back the Senate majority.

However, 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 Senate Republicans. Some have expressed concerns about Blanche's previous role as Trump's personal attorney. Among those who have yet to sign on their support are Sen. Lisa Murkowski. The Alaska Republican has said she still needed to fully evaluate Blanche's nomination once it makes it out of committee.

And in a tightly controlled GOP-chamber, a handful of Republicans could derail any plan.
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