Senate panel advances Blanche nomination after DOJ drops $1.8B fund

The Senate Judiciary Committee voted 12-10 along party lines Tuesday, August 4, to advance Acting Attorney General Todd Blanche’s nomination to a full Senate vote after the Justice Department agreed in writing not to establish a proposed $1.8 billion Anti-Weaponization Fund.

The committee action advances Blanche’s nomination but does not confirm him as attorney general. The full Senate could consider the nomination later this week.

What changed

Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina had withheld support over a settlement involving President Donald Trump’s lawsuit against the Internal Revenue Service. Their concerns focused on the proposed fund and on the settlement’s tax-audit provisions.

After several days of negotiations, Blanche issued an order Sunday evening stating that the Justice Department would not establish the fund. The order said no members had been appointed, no money had been transferred, no claims process had been created and no claims had been paid.

Cornyn and Tillis backed the nomination after receiving the written assurances. Their support allowed the committee to move the nomination forward.

What the original fund would have done

The Justice Department’s original announcement described a $1.776 billion fund financed through the federal judgment fund. It was intended to create a process for people who alleged that federal agencies had targeted them for political or ideological reasons.

The announcement called for quarterly reporting to the attorney general, procedures to protect private information and measures to prevent fraud. It also said the fund would stop processing claims no later than December 1, 2028.

The underlying settlement document contemplated five fund members, including a chair appointed by the attorney general. It also described procedures for submitting and reviewing claims, limits on relief and the December 2028 end date.

Those provisions are important context, but the fund did not become a completed payout program. DOJ records cited in Blanche’s order indicate that no members were appointed, no transfers occurred and no claims were paid before the department withdrew from the plan.

What remains in the settlement

The settlement also addressed tax-audit protections for Trump, two of his sons and the Trump Organization, the parties named in the agreement.

DOJ clarified that the protection applies retroactively to claims that were open when the settlement was signed. It does not prevent examination of future tax filings, and it does not extend to an unlimited group of people.

The clarification describes the scope of the existing settlement. It is not a new tax law and does not mean that future audits are impossible.

Why Democrats object

Democrats on the committee argue that Blanche’s order is an executive-branch action rather than a permanent statutory prohibition enacted by Congress. They warn that a future attorney general could attempt to revive the fund through another department order.

They also point to a separate claims process that could allow compensation through existing government procedures, even though the specific Anti-Weaponization Fund described in the settlement is not moving forward under Blanche’s order.

Those concerns remain arguments about the durability and legal effect of the assurances, not findings that the fund has been revived or that payments are being made.

What happens next

Blanche remains acting attorney general while the Senate considers his nomination. A confirmation vote would determine whether he receives the Senate-confirmed attorney general post rather than continuing in an acting capacity.

The next concrete development is a possible full Senate vote. Senators are also likely to focus on whether DOJ’s written assurances permanently limit the settlement, whether Congress will seek legislation addressing the fund and how the department handles the remaining tax-audit provisions.

Sources

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