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Blanche rescinds anti-weaponization fund amid Senate holdup

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Acting Attorney General Todd Blanche said he is rescinding the nearly $1.8 billion anti-weaponization fund that stalled a Senate vote on his nomination for attorney general.

Blanche announced the news in a Aug. 2 post on X, days before the Senate Judiciary Committee is set to decide whether to approve him to head the Justice Department.

The heavily criticized fund would have compensated allies of President Donald Trump who say they were unfairly prosecuted during the Biden and Obama presidencies, including those who attacked the Capitol on Jan. 6, 2021.

Sens. John Cornyn, R-Texas, and Thom Tillis, R-North Carolina, held up Blanche’s attorney general nomination over questions about the future of 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,” Blanche wrote in the X post. “We have enjoyed good faith discussions, and as a result issue the following order and update with regard to the May IRS settlement.”

Natalie Yezbick, a spokesperson for Cornyn, said in a statement: “Sen. Cornyn has reached an agreement with the Department of Justice, which will be issuing a formal order permanently terminating the anti-weaponization fund and making clear in a binding written document that the scope of the audit settlement is limited to only the plaintiffs, including the President, and the IRS.”

Scrapped anti-weaponization fund paves way for Blanche confirmation

Blanche’s repeal of the fund will help pave the way for his confirmation to attorney general. The Senate Judiciary Committee has scheduled his nomination vote for Tuesday, Aug. 4, per Reuters.

The $1.776 billion fund was created as part of a settlement to resolve a $10 billion lawsuit Trump filed against the IRS over allegedly mishandling his tax records.

The fund was set to go to “victims of lawfare and weaponization,” including those who say they were unfairly prosecuted during the Biden and Obama presidencies. Critics argued it would allow Trump’s political allies and those pardoned for the Jan. 6, 2021 attack on the Capitol to cash in on taxpayer dollars.

After being announced in May, the fund faced a series of legal setbacks. Trump and the Justice Department appeared to retreat from its creation, but on July 31, the president appealed a ruling that blocked access to the fund.

Trump threatened to bring fund back if Blanche was not confirmed

After the holdup over Blanche’s confirmation, Trump took to social media to offer a new threat to Republican senators: approve Blanche as attorney general or the anti-weaponization fund would return.

“It will immediately be back on the table, and I will get it done,” Trump wrote in an Aug. 1 Truth Social post.

Trump also said Blanche would stay in his “acting” rank and bring back the fund if not confirmed.

While Trump argued in the post that the fund would take care of those “badly treated” under the previous presidents, Tillis responded in an Aug. 1 post that it is a “payout pot for punks.”

“It’s unfortunate that Todd Blanche, who I consider qualified for the job, will not be confirmed because of this reversal,” Tillis wrote. “Hopefully, we can resolve this by Tuesday.”

Blanche, who is Trump’s former personal lawyer, has served as acting attorney general since the president fired Pam Bondi in April.

Contributing: Emily R. Condon, Aysha Bagchi, USA TODAY

Melina Khan is a national trending reporter for USA TODAY. Keep up with her on X @melinakh and Instagram @bymelinakhan.

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