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 who claim they were politically persecuted by the previous administration. The move came after Republican Senators Thom Tillis of North Carolina and John Cornyn of Texas threatened to block Blanche’s confirmation to permanently lead the Justice Department, demanding that any further pursuit of the so-called anti-weaponization fund be put in writing as dead. The order states plainly that the May 18 establishment of the fund “is rescinded and shall have no force or effect,” and goes to considerable lengths to clarify that no members were ever appointed, no money was transferred, and no claims were paid out.
Blanche said in a post on X that his team had met with committee members and senators over the past several weeks to address concerns and outstanding questions, describing the discussions as good faith negotiations that produced the order. A spokesperson for Cornyn confirmed the senator had reached an agreement with the Justice Department regarding both the fund and the scope of a related IRS settlement provision that had granted broad immunity from tax audits to Trump and his family. Sunday’s order clarifies that the audit immunity applies only retroactively to claims open at the time of settlement and does not shield the president from examination of future filings.
The Senate Judiciary Committee vote on Blanche’s nomination was delayed last week due to the objections from Cornyn and Tillis but is now scheduled for Tuesday. At his confirmation hearing earlier in July, Blanche insisted the fund was dead, but Cornyn pressed him on whether there had been a written agreement among all parties to modify the settlement, noting that the terms required any changes be agreed upon in writing. Blanche responded that no modification was needed because the fund never started and no money moved from Treasury. The acting attorney general’s office included a transcript of that exchange with Sunday’s order, reinforce his position.
President Trump had complicated matters with a post on Truth Social Saturday threatening to push to revive the fund if the two senators did not support Blanche. He accused both senators of opposing Blanche out of personal pique over endorsement decisions, though he framed the threat around ensuring compensation for people mistreated during what he called the Crooked Joe Biden administration. Tillis fired back quickly, suggesting that despite assurances the fund was dead, Trump clearly intended to find another way to make payouts either through executive action or legislation that most Senate Republicans would oppose.
Democrats have long dismissed the fund as a political slush fund, and several Republicans beyond Cornyn and Tillis have voiced opposition, making any future implementation questionable regardless of presidential pressure. A federal judge temporarily blocked the fund in May amid multiple lawsuits, and Justice Department lawyers argued in June court filings that it should be considered moot since it was never going forward. But at least one court declined to dismiss those challenges, which appears to have added urgency to putting the formal rescission in writing before Tuesday’s vote moves forward.