Blanche Cancels $1.776 Billion ‘Anti-Weaponization’ Fund Before Senate Vote

Acting Attorney General Todd Blanche formally canceled the Justice Department's $1.776 billion Anti-Weaponization Fund late Sunday, resolving the immediate demand from Republican senators who had stalled his nomination to become attorney general. The written order matters because it replaces weeks of assurances with an official departmental action. It does not erase the questions raised by the original settlement, and it does not itself confirm Blanche to the permanent job.

The Justice Department said the new order rescinds its May 18 order establishing the fund. According to the rescission language reported by The Associated Press, no fund members had been appointed, no money had been transferred, no claims process had been created and no claims had been paid. Reuters separately reported the cancellation and said it cleared a path toward the Senate Judiciary Committee's next vote on Blanche's nomination, scheduled for Tuesday.

The original fund was unusual in both size and origin. DOJ announced it in May as part of a settlement resolving President Donald Trump's lawsuit against the Internal Revenue Service over the leak of his tax returns. The department said the fund would hear claims from people who alleged government weaponization or lawfare, could issue apologies and monetary relief, and would receive $1.776 billion from the federal Judgment Fund. Five members were to administer it, quarterly reports were to go to the attorney general, and any money left after the claims process ended was to return to the federal government.

Supporters described the proposal as a way to compensate people they believed had been wrongfully targeted by government. Critics—including lawmakers from both parties—questioned whether taxpayer money could flow to political allies of the president or people convicted in connection with the Jan. 6, 2021, attack on the Capitol. The public record never reached a stage where individual eligibility decisions could be examined because the fund never became operational.

Blanche told senators in June and again during his July confirmation proceedings that DOJ would not move forward with the fund. Sens. John Cornyn of Texas and Thom Tillis of North Carolina sought a binding written termination before supporting the nomination. The Judiciary Committee postponed a vote that had been scheduled for July 30 after the two Republicans withheld support.

On Sunday, a spokesperson for Cornyn confirmed an agreement with DOJ, according to AP and Reuters. Blanche said the action followed good-faith discussions with committee members and senators. Tillis did not immediately provide a new public comment to AP. Those facts support saying the immediate Senate standoff shifted; they do not guarantee how either senator or the full committee will vote Tuesday.

A second document addressed a related tax-audit provision in the Trump-IRS settlement. AP and Reuters reported that DOJ clarified the protection applies retroactively to claims open at the time of the settlement and does not shield future tax filings from examination. That is narrower than a permanent prospective ban on audits. The exact operation of the settlement may still be litigated, and RepWatchr is not making a legal conclusion about claims that remain before a court.

The settlement has drawn separate judicial scrutiny. AP reported that a judge characterized it as an improper exercise in self-dealing and referred one of Trump's attorneys for possible disciplinary review. Trump's lawyers have appealed, and Blanche has disputed the judge's insinuations about his role. Those are contested legal positions, not a final finding of misconduct by an appellate court.

Trump continued over the weekend to defend the idea of compensating people he believes were wronged and said he could ask Congress to create such a program by statute. That possibility is different from the DOJ fund Blanche rescinded. If Congress considers a new fund, lawmakers would have to decide eligibility rules, appropriations, oversight, conflicts safeguards and public reporting in legislation that voters can read and evaluate.

What changed Sunday is concrete. The May 18 DOJ order establishing the fund was formally revoked. The department says no governing members, money transfers, claims process or payments ever existed. The tax provision was described as limited to past claims rather than future filings. Cornyn's office said an agreement had been reached.

What did not change is equally important. Blanche remains a nominee awaiting committee and Senate action. The Judiciary Committee's official hearing record still contains his testimony and senators' questions. The original settlement and related litigation remain part of the public record. A future Congress could debate a different compensation proposal. And the Senate still has to decide whether Blanche should lead the department permanently.

The confirmation fight raises a basic accountability question beyond one nominee: what written assurances should senators require when executive-branch testimony, White House statements and agency documents appear to point in different directions? Cornyn and Tillis used their committee votes to insist on a formal order. Voters can judge that decision separately from their view of Blanche or the underlying fund. The useful standard is whether the final government document is public, specific and enforceable.

The Senate should also ask how the Justice Department will prevent personal or political conflicts when settling cases involving a sitting president, especially when the settlement creates broad public spending authority. The Judgment Fund exists so the government can pay judgments and settlements without waiting for a case-by-case appropriation. Its availability makes transparency and independent review more important, not less, when a proposal carries political beneficiaries or an attorney general's confirmation is at stake.

The responsible conclusion is narrower than either side's talking points. Blanche has formally killed the $1.776 billion DOJ fund before it paid anyone. That is a material change and a victory for senators who demanded written cancellation. It is not proof that every controversy surrounding the settlement has been resolved, nor is it a substitute for the Senate's constitutional advice-and-consent judgment. Tuesday's committee record—and any later floor vote—will show what lawmakers do with the document they demanded.