Todd Blanche Rescinds $1.8 Billion Anti-Weaponization Fund for Trump Allies

Acting Attorney General Todd Blanche issued a formal order late Sunday rescinding a $1.8 billion anti-weaponization fund intended to compensate political allies of President Donald Trump. The move follows weeks of negotiations with Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina, who had blocked Blanche’s nomination to become attorney general pending a written commitment to terminate the fund.

Formal Rescission of the Fund

The order, released by the Justice Department on Sunday evening, explicitly terminates the fund established by the Attorney General’s May 18, 2026, order. The document states: The Attorney General’s May 18, 2026 Order establishing the Anti-Weaponization Fund (‘Fund’) is rescinded and shall have no force or effect.

In an accompanying statement, the Justice Department clarified the status of the initiative, noting: “For the avoidance of doubt, nothing in this Order is intended to contradict or otherwise be contrary to prior representations by the Department of Justice that the Fund is not operative. No Members were appointed; no funds were transferred; no process for receiving claims was established; no claims were paid.” The order further notes that while several lawsuits were filed challenging the fund and at least one court declined to dismiss those claims as moot, the new directive establishes, beyond any doubt, that there is no Fund.

The fund was originally part of a settlement agreement stemming from a $10 billion lawsuit President Trump filed against the Internal Revenue Service and the Treasury Department. It was designed to compensate people who believe they were wronged or unfairly prosecuted by the Justice Department. The fund faced intense bipartisan outrage over the possibility that the payouts could extend to participants in the January 6, 2021, riot at the U.S. Capitol.

Negotiations with Senators Cornyn and Tillis

The resolution marks the end of a weekslong standoff that stalled the Senate Judiciary Committee’s confirmation process for Blanche. Senators Cornyn and Tillis, both members of the Judiciary panel, had refused to vote for Blanche as the full-time attorney general unless it was put in writing that the administration would no longer pursue the fund. A spokeswoman for Senator Cornyn confirmed the deal on Sunday.

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Blanche had previously stated at a June hearing that the department would not move forward with the fund. However, the senators remained skeptical, particularly as President Trump continued to express support for the idea. In a statement posted to X, Blanche wrote: My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions. He added, We have enjoyed good faith discussions, and as a result issue the following order and update with regard to the May IRS settlement. The Department always welcomes and appreciates productive engagement with all members of Congress.

IRS Settlement and Audit Immunity

The original settlement regarding President Trump’s lawsuit against the Internal Revenue Service and the Treasury Department also included a provision that shielded the Trump family from tax audits. While the Anti-Weaponization Fund has been officially scrapped, the document released by Blanche on Sunday also limits the scope of other provisions within that settlement. The Justice Department has maintained that the audit immunity agreement remains in place, even as the fund itself is terminated.

Todd Blanche Rescinds $1.8 Billion Anti-Weaponization Fund for Trump Allies
Photo: cbsnews.com

Path to Confirmation

Blanche’s announcement comes two days before the Senate Judiciary Committee is set to vote on his nomination to serve as attorney general in a permanent capacity. With the written order now in place, the committee is expected to proceed with the confirmation vote on Tuesday. The administration and the Justice Department are looking to move past the standoff, having addressed the concerns of the two GOP senators whose support remained a critical hurdle for the nominee.

Acting Attorney General Todd Blanche appears before the Senate Judiciary Committee on Capitol Hill in Washington, July 15
Photo: Apnews

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