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Did Todd Blanche Actually Kill Trump’s Slush Fund?

Todd Blanche’s path to confirmation as attorney general now appears clear, as the acting AG has officially reached an agreement with the two Republican senators who threatened to withhold their support for him to remain in the role. But what that agreement will mean in practice isn’t yet clear.

Senator John Cornyn of Texas and Senator Thom Tillis of North Carolina were reluctant to support Donald Trump’s U.S. attorney general pick due to outstanding issues with the president’s settlement of his unprecedented $10 billion lawsuit against the Internal Revenue Service. The pair, who both hold a key vote on the Senate Judiciary Committee, objected to the settlement’s creation of a nearly $1.8 billion anti-weaponization fund intended to reimburse alleged victims of governmental lawfare and its granting of immunity to Trump and his named associates from IRS audits related to their past conduct.

On Sunday, Blanche indicated he had reached a deal with the senators, issuing an order he says rescinds the Justice Department’s May order creating the fund. “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 and update with regard to the May IRS settlement. The Department always welcomes and appreciates productive engagement with all members of Congress,” Blanche wrote.

The order, signed by Blanche, reads, “The Attorney General’s May 18, 2026 Order establishing the Anti-Weaponization Fund (‘Fund’) is rescinded and shall have no force or effect,” adding that it “establishes, beyond any doubt, that there is no Fund.” An accompanying memo, which the acting attorney general did not sign, appears to briefly touch upon the extent of the IRS immunity outlined in the settlement, saying that it “applies by its terms only retroactively” and did not bar any future prosecution and that it would only apply to the named plaintiffs.

Blanche’s overture appeared to satisfy both Cornyn’s and Tillis’s concerns with the pair issuing a joint statement. “We are pleased that the Department of Justice has issued a formal order terminating the anti-weaponization fund. Additionally, the Department has acknowledged in a binding written order that the audit settlement is limited to the plaintiffs and the scope does not extend beyond the defendants in the lawsuit, the IRS and the Treasury, addressing concerns that multiple of our Republican colleagues share,” the senators wrote. “We want to express our gratitude to Mr. Blanche for working with us on this, and we look forward to voting to advance his nomination out of the Senate Judiciary Committee soon.”

Senator Chuck Grassley of Iowa, the Judiciary chairman, quickly scheduled a vote for Blanche’s nomination on Tuesday morning, which would put the acting attorney general on track for a full confirmation vote later this week.

However, questions remain as to whether Blanche’s new deal is enough to render the fund truly dead. As Axios notes, the original IRS settlement stated that it could only be amended “with the written agreement of the Parties,” referring to the IRS, the Justice Department, and the plaintiffs, which include Trump; his eldest sons, Donald Trump Jr. and Eric Trump; and the Trump Organization. Notably, only Blanche signed on to this new order. Under questioning by Cornyn during his confirmation hearing last month, Blanche conceded that the settlement still stands as written and that it’s an enforceable document Trump could ultimately sue to execute.

Mike Howell, a Republican lawyer who previously sought to be added to the fund’s board, appeared to think the fund could easily be revived. “Can be undone after Tuesday. The Anti-Weaponization Fund is great,” he wrote Sunday.

Trump, who threatened to withdraw Blanche’s nomination until Tillis and Cornyn exit the Senate next year, has defended the fund in recent days and even suggested he would support a bill to establish the fund through Congress.

Democrats in Congress, who remain strongly opposed to Blanche’s nomination, pointed to apparent flaws in the agreement with Cornyn and Tillis. California Senator Adam Schiff wrote on social media that the deal “doesn’t prevent payouts to violent insurrectionists in the future,” alluding to concerns held by many — including Tillis — that people convicted of offenses related to the January 6 riot at the U.S. Capitol could potentially qualify for the fund.

“It doesn’t prevent the admin from bringing the slush fund back from the dead next week or using DOJ’s Judgment Fund for the same illicit purpose. It leaves in place a tax-immunity deal that could help Trump skip taxes on the $2.3 billion he made last year, and still leaves it vague who and what is covered,” Schiff wrote.