President Donald Trump's administration has appealed a federal court ruling that halted a $10 billion lawsuit aimed at securing tax immunity from the IRS and establishing an "anti-weaponization fund." The appeal, filed Friday with the U.S. Court of Appeals for the 11th Circuit, comes after U.S. District Judge Kathleen Williams dismissed the settlement attempt, calling it a move made in "bad faith" and an effort to manipulate the judicial process.
Williams' 56-page order also recommended that the lawyers who represented Trump in the case be referred to the bar for potential disciplinary proceedings. The lawsuit, she stated, "was brought for an improper purpose—to gain the imprimatur of judicial legitimacy for a 'settlement' that had no viable basis in law or fact."
This unexpected legal maneuver could significantly complicate the confirmation process for Todd Blanche, Trump's personal lawyer and acting attorney general nominee. Blanche has faced an uphill battle securing enough Republican votes in the Senate for confirmation, largely due to concerns surrounding the proposed "anti-weaponization fund."
Earlier in July, Blanche acknowledged that written changes would be necessary to formally moot the IRS settlement and prevent its potential revival. This admission led to negotiations with Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina, who had stated they would not vote to confirm Blanche unless Trump agreed in writing to void both the IRS audit immunity and the "anti-weaponization fund."
Trump's willingness to potentially jeopardize his attorney general nominee's confirmation to keep the IRS settlement alive offers insight into his administration's approach. In a post on Truth Social, Trump indicated he had "no objection to temporarily withdrawing Todd’s name" if Cornyn and Tillis did not vote to confirm him, suggesting he would resubmit the nomination after the midterm elections. However, on Friday, Trump reversed this stance, urging the committee to confirm Blanche immediately and criticizing Cornyn for delaying the process. He also reiterated his support for the "anti-weaponization fund," which he noted could include beneficiaries such as Jan. 6 U.S. Capitol rioters.
During a meeting with Cabinet officials at Camp David, Trump commented on the "anti-weaponization fund," stating, "Well, it is dead. But I wish it weren’t, to be honest with you."
Senator Cornyn suggested on Thursday that the concerns about Blanche's confirmation extend beyond himself and Senator Tillis, noting on social media that Trump "is mistaken if he believes concerns about the provisions in his tax lawsuit settlement are limited to me and Senator Tillis."