President Donald Trump is defending the idea behind a disputed $1.8 billion compensation fund even as Republican opposition to the proposal complicates the Senate confirmation of Todd Blanche as permanent U.S. attorney general.
Blanche, Trump’s former personal defense lawyer, has served as acting attorney general since April while continuing to hold the position of deputy attorney general. Trump has urged Republican senators to approve him quickly, describing Blanche as highly qualified and unfairly caught in a broader dispute over the proposed fund.
The Senate Judiciary Committee is now scheduled to consider Blanche’s nomination on Tuesday after an earlier vote was postponed. Republican senators John Cornyn of Texas and Thom Tillis of North Carolina have demanded written assurances that the Justice Department will not revive the fund or implement related provisions involving Trump’s tax records.
Trump added to the uncertainty with two seemingly conflicting messages Friday. In a social media post, he defended compensating people he believes were unfairly targeted by the federal government. Later, during a cabinet meeting at Camp David, he said officials had agreed that the fund was “dead,” although he made clear that he remained disappointed by that outcome.
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Trump said he believed some people prosecuted or investigated by the federal government had suffered serious personal and financial damage. Critics argue that the proposal could direct taxpayer money to political allies, including some people connected to the January 6, 2021, attack on the U.S. Capitol.
The Justice Department originally announced what it called the Anti-Weaponization Fund in May. Under the department’s plan, the fund would have received approximately $1.776 billion from the federal Judgment Fund, a permanent appropriation used to pay certain legal settlements and court judgments.
According to the department’s original announcement, applicants would have been able to seek formal apologies or financial relief. The department said there would be no partisan requirement for filing a claim, that unused money would return to the federal government and that the program would stop processing claims by December 1, 2028. A five-member panel appointed through a process controlled largely by the attorney general would have reviewed the claims.
Opponents have referred to the proposal as a “slush fund,” but that description represents criticism of the program rather than its official name. Their concerns focus on who could receive payments, how claims would be evaluated and whether political considerations could influence decisions involving nearly $1.8 billion in public money.
The fund was connected to a proposed settlement of Trump’s $10 billion lawsuit against the Internal Revenue Service over the alleged mishandling and disclosure of his tax information. Cornyn and Tillis have also raised concerns about a separate part of the arrangement that they say could protect Trump, members of his family or associated businesses from future tax audits.
Blanche has reportedly told senators that the fund will not move forward. The two Republican holdouts, however, want the commitment formally documented, particularly because Trump continues to defend the principle of compensating people he considers victims of politically motivated government action.
Tillis said Trump’s public defense of the proposal demonstrated why a binding agreement was necessary. Cornyn has similarly argued that verbal assurances are insufficient when the dispute involves taxpayer funds and potentially broad protections from IRS scrutiny.
The controversy has placed Blanche in an unusual position. Before joining the Justice Department, he represented Trump in several criminal cases. As acting attorney general, he now oversees a department with more than 100,000 employees, including the FBI, Drug Enforcement Administration, U.S. Marshals Service and federal prosecutors across the country.
Supporters say Blanche’s legal experience and current leadership role make him a strong candidate for permanent confirmation. Democrats and government watchdogs have questioned whether his prior representation of Trump could create conflicts when the department handles matters affecting the president or his political allies.
The dispute is also an important test of congressional oversight. Although Republicans control the Senate, Blanche needs sufficient Republican support in the Judiciary Committee to advance his nomination. The resistance from Cornyn and Tillis shows that concerns over federal spending and executive power can still produce divisions within Trump’s own party.
For taxpayers, the central question extends beyond Blanche’s career. It concerns whether an administration should be permitted to establish a large compensation program through a legal settlement, how recipients should be selected and what safeguards are required to prevent political favoritism.
It remains uncertain whether the White House and Justice Department will provide the written commitments demanded by the senators before Tuesday’s meeting. Trump’s statement that the fund is no longer moving forward could help resolve the impasse, but his continued public support for compensation has left lawmakers seeking stronger guarantees.
Why It Matters
The attorney general leads the Justice Department and has enormous authority over federal prosecutions, investigations and law-enforcement policy. A prolonged confirmation fight could deepen concerns about the department’s independence and its handling of matters involving the president.
The proposed fund also involves nearly $1.8 billion in taxpayer-backed money. How that money could be distributed—and whether political allies could benefit—raises broader questions about transparency, oversight and equal treatment under federal law.
What Comes Next
The Senate Judiciary Committee is expected to reconsider Blanche’s nomination on Tuesday. Cornyn and Tillis could support him if they receive satisfactory written assurances that the fund and disputed tax provisions will not be implemented.
Should the committee approve Blanche, his nomination would move closer to a full Senate vote. Another delay would increase pressure on Trump either to renegotiate the disputed settlement, withdraw the nomination or leave Blanche serving as acting attorney general while the political standoff continues.
Trump said the disputed compensation fund would not move forward, although Republican senators continued seeking formal assurances before advancing Todd Blanche’s nomination.
President Donald Trump said his ‘anti-weaponization’ fund was dead despite his affinity for it amid a standoff with fellow Republicans in the Senate that has stalled his bid to get acting Attorney General Todd Blanche in the role permanently https://t.co/HmggtrcU3g pic.twitter.com/2uMm3vX2s6
— Reuters (@Reuters) July 31, 2026
