Acting Attorney General Todd Blanche has officially terminated a $1.8 billion fund intended to compensate political allies, a move made as part of a deal to secure his nomination for permanent Attorney General. The fund's cancellation was confirmed by Blanche in a social media post on Sunday night, following weeks of discussions with two Republican senators who had been blocking his appointment.
In his post on X, Blanche stated, "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." The order officially rescinds a previous May 18 order that established the fund.
Donald Trump had previously indicated the fund was "dead" but expressed a desire to revive it, stating, "I wish it weren't, to be honest with you. I think people were horribly treated, horribly abused ... and I'd like to see them compensated for the pain." He reiterated this stance in a press gaggle on Air Force One on Sunday evening.
Tax Audit Immunity Clarified
The agreement also modifies a provision of a settlement that offered broad immunity to Trump and his family from tax audits. The deal clarifies that this immunity applies only retroactively to claims open at the time of the settlement and does not protect future tax filings from examination. This clarification addresses concerns raised by senators regarding the potential scope of the audit immunity.
A spokeswoman for Senator John Cornyn of Texas, one of the senators who had been delaying Blanche's nomination, confirmed the agreement late Sunday. Senator Thom Tillis of North Carolina had no immediate comment.
Blanche had previously stated that the fund would not move forward, but the Justice Department had not formally confirmed this in writing, leading to concerns that it could be revived, particularly given Trump's continued support for the initiative. Trump had issued an ultimatum to Senators Cornyn and Tillis on Saturday, threatening to push for the fund's restoration if they did not approve Blanche's nomination.
Trump had argued that the fund "takes care of those who have been so badly treated" during the administrations of Democratic Presidents Barack Obama and Joe Biden. He specifically mentioned individuals facing charges from the January 6, 2021, Capitol attack, stating their lives had been "destroyed" and that the fund would serve as reimbursement for their suffering.
Senators Tillis and Cornyn had protested Blanche's selection due to the settlement that created the controversial fund and provided tax audit immunity. They sought written assurances that the fund would not be revived and that the audit immunity was limited to past claims and specific parties. The Senate Judiciary Committee is scheduled to vote on Blanche's nomination on Tuesday.