Acting Attorney General Todd Blanche appears to have cleared a major obstacle to Senate confirmation after two Republican holdouts announced they would support advancing his nomination following written assurances about a disputed compensation fund and a separate agreement involving President Donald Trump’s tax records.
Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina said Monday that the Justice Department had issued a formal order ending the proposed $1.776 billion Anti-Weaponization Fund.
The two senators had previously threatened to block Blanche unless he provided a binding written commitment that the fund would not become operational. They also demanded clarification that a related tax settlement would not give Trump, his family or associated businesses permanent protection from future IRS audits.
Cornyn and Tillis said their concerns were addressed through what they described as a legally enforceable document. They now plan to support moving Blanche’s nomination out of the Senate Judiciary Committee.
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The committee is scheduled to consider Blanche’s nomination at a 9 a.m. meeting Tuesday. Approval would send the nomination to the full Senate, where Republicans hold the majority.
Blanche’s August 2 order formally rescinds the Justice Department directive that created the fund in May. It states that the original order has no legal force and that no members were appointed, no money was transferred, no system for receiving claims was created and no payments were issued.
The fund had been proposed as part of a settlement resolving Trump’s $10 billion lawsuit against the Internal Revenue Service over the unauthorized disclosure of his tax information.
Under the original plan, people who claimed they were unlawfully targeted by federal agencies could have applied for apologies or financial compensation. The fund would have received $1.776 billion from the federal Judgment Fund, a permanent government appropriation used to pay qualifying settlements and court judgments.
Supporters described the program as compensation for victims of politically motivated government action. Critics called it a “slush fund” and warned that the structure could allow public money to be distributed to Trump allies, potentially including some people prosecuted over the January 6, 2021, Capitol attack.
No court had ruled that the fund itself was criminal, and Blanche’s order says it never became operational.
The senators’ agreement also addresses—but does not fully eliminate—the controversy surrounding Trump’s tax treatment.
Blanche clarified that the settlement does not prevent the IRS from examining Trump’s future tax filings. He said any release of claims applies retroactively and only to the named parties in the lawsuit, including Trump, his sons and the Trump Organization.
That means the agreement is narrower than earlier language that appeared to offer indefinite protection to Trump and a wider group of related individuals. However, protections involving earlier tax periods remain in place, and critics continue to question whether the Justice Department should have granted them.
The distinction is politically significant. Cornyn and Tillis can argue that they prevented permanent immunity from future audits while forcing the Justice Department to formally cancel the compensation program.
At the same time, the revised arrangement does not entirely reverse the IRS settlement or resolve questions about whether Trump could avoid liabilities connected to previous tax years. Legal specialists and Democratic lawmakers are expected to continue examining that part of the agreement.
The resolution follows several days of conflicting statements from the administration.
Blanche had repeatedly told lawmakers that the fund was dead but initially declined to provide the formal document sought by Cornyn and Tillis. Trump then publicly defended compensating people he believes were unfairly targeted and threatened to push for the fund’s return if senators refused to confirm Blanche.
Blanche’s new order ends the Justice Department program created through the settlement. It would not necessarily prevent Trump from proposing a separate compensation bill and asking Congress to approve it through the normal legislative process.
That difference may have helped produce the compromise. The senators secured written limits on executive action, while Trump retains the political ability to argue for a future program requiring congressional approval.
Blanche, who previously represented Trump in criminal proceedings, has served as acting attorney general since April. His prior relationship with the president and his role in negotiating the IRS settlement have led Democrats and government watchdogs to question whether he would operate the Justice Department independently.
Supporters argue that his experience as a prosecutor, defense lawyer and senior Justice Department official qualifies him to lead the department permanently.
The agreement does not settle those broader arguments, but it substantially improves Blanche’s chances of reaching a full Senate vote.
Why It Matters
The attorney general oversees the FBI, federal prosecutors and some of the country’s most sensitive criminal and national-security investigations. The written agreement could remove the immediate Republican obstacle preventing Blanche from receiving permanent confirmation.
The dispute also demonstrates how individual senators can use the confirmation process to demand limits on executive actions involving taxpayer money.
For taxpayers, the cancellation means the Justice Department’s proposed $1.776 billion compensation program will not proceed under the existing order. However, questions remain about the financial effect of the retroactive tax protections granted to Trump and the other named plaintiffs.
What Comes Next
The Senate Judiciary Committee is scheduled to vote Tuesday on whether to advance Blanche’s nomination.
If approved, Senate Majority Leader John Thune can schedule a final confirmation vote before the chamber leaves for its August recess. Republican control of the Senate makes confirmation more likely now that Cornyn and Tillis have announced their support.
Democratic senators may continue pressing Blanche about the remaining tax protections and whether the administration could attempt to create another compensation program after his confirmation.
Senators John Cornyn and Thom Tillis said they would support advancing Todd Blanche’s nomination after receiving binding written assurances from the Justice Department.
🚨 JUST IN: RINOs Cornyn and Tillis have DROPPED their opposition to Todd Blanche’s confirmation as Attorney General
This comes after a HEATED back and forth between Trump and the RINO pair, who were blocking Blanche to spite Triump.
Blanche will likely be confirmed THIS WEEK. pic.twitter.com/w9cdFLtN5C
— Nick Sortor (@nicksortor) August 3, 2026
