Acting AG Blanche Rescinds $1.8B 'Anti-Weaponization' Fund to Secure Senate Confirmation

Acting Attorney General Todd Blanche issued a formal order late Sunday terminating a highly contested $1.8 billion "anti-weaponization fund," dismantling a core component of a recent executive settlement to save his own cabinet nomination.[2][6]

The move breaks a weeks-long deadlock in the Senate Judiciary Committee, where two Republican senators—John Cornyn of Texas and Thom Tillis of North Carolina—had adamantly refused to advance Blanche's nomination for permanent Attorney General.[1][3]

By leveraging their constitutional "advice and consent" power, the senators forced the executive branch to abandon a controversial financial initiative. The episode offers a textbook demonstration of how legislative checks and balances function in real time, proving that individual committee members can still exert profound influence over executive actions.

The standoff originated from a May 18, 2026, settlement between President Donald Trump and the Justice Department, resolving a massive lawsuit against the Internal Revenue Service and the Treasury Department.[2]

That settlement included the creation of the $1.8 billion "Anti-Weaponization Fund," designed to compensate individuals who claimed they were unfairly targeted by politically motivated federal investigations during the previous administration.[1][5]

The proposal immediately drew bipartisan scrutiny. Critics warned it could function as a taxpayer-financed slush fund for political allies, expressing particular outrage over the possibility that individuals involved in the January 6 Capitol attack could be considered for payouts.[2][6]

While Blanche had previously offered verbal assurances during committee hearings that the fund would not move forward, Cornyn and Tillis demanded a binding, written rescission before they would cast their confirmation votes.[2][3]

"We needed a written document addressing our concerns," the senators noted in a joint statement, emphasizing that verbal promises were insufficient when evaluating a nominee for the nation's top law enforcement position.[1]

The formal order issued Sunday night leaves no room for ambiguity. It explicitly states that the May 18 directive establishing the fund is "rescinded and shall have no force or effect."[2][3]

The Justice Department further clarified that the fund never actually became operational: no members were appointed to oversee it, no funds were transferred from the Treasury, and no claims were processed or paid.[5][6]

Beyond the $1.8 billion fund, the senators also secured major concessions regarding a second, equally controversial component of the May settlement: sweeping tax audit immunity for the president and his family.[1]

The original agreement appeared to offer broad, forward-looking protection against IRS examinations for the president and potentially dozens of affiliated corporate entities.[2]

The new, binding written order significantly narrows that scope. The Justice Department clarified that the audit immunity applies strictly retroactively to claims that were open at the time of the settlement, explicitly stating it does not protect the president or his businesses from examinations of future tax filings.[1][2]

The agreement materialized despite intense public pressure from the White House. Over the weekend, President Trump took to social media to threaten that he would keep Blanche in an "acting" capacity indefinitely if the Senate refused to confirm him.[3][4]

Trump also vowed to push Congress to pass the Anti-Weaponization Bill legislatively, signaling his continued support for the compensation effort even as his Attorney General nominee dismantled the executive version of the fund.[4]

However, the reality of governing and the necessity of a confirmed cabinet ultimately prevailed. An acting official wields limited long-term authority, and securing a permanent Attorney General required yielding to the Senate's oversight demands.

With the formal order in hand, Cornyn and Tillis officially announced their support for Blanche on Monday, expressing gratitude that the Justice Department had addressed their concerns in writing.[1][6]

The Senate Judiciary Committee is now scheduled to advance Blanche's nomination to the full Senate during its Tuesday markup session, clearing the final significant hurdle for his confirmation.[1]

Ultimately, the standoff illustrates the enduring power of the Senate confirmation process. Even in an era of intense partisan loyalty, individual lawmakers can effectively halt executive initiatives by withholding their consent for key personnel.