[Photo Credit: By Andrew Bossi - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=774367]

Blanche Rescinds Controversial $1.8 Billion Fund After Deal With Senate Republicans

Acting Attorney General Todd Blanche announced Sunday night that the Justice Department has officially rescinded a controversial $1.8 billion “anti-weaponization” fund following weeks of negotiations with Republican senators, bringing an apparent end to a standoff that had threatened support for his nomination to become attorney general on a permanent basis.

Blanche revealed the decision in a post on X, saying he and his team had spent several weeks meeting with members of Congress to resolve concerns surrounding the fund. He described the talks as productive and conducted in good faith, adding that the department welcomed engagement from lawmakers throughout the process.

Alongside his statement, Blanche released a signed order formally canceling the program. The order declares that the Attorney General’s May 18, 2026, directive establishing the Anti-Weaponization Fund “is rescinded and shall have no force or effect.”

The order further states that the action removes any uncertainty over the issue, declaring that there is no longer any such fund.

The announcement comes just two days before the Senate Judiciary Committee is scheduled to vote on Blanche’s nomination to lead the Justice Department permanently.

The now-rescinded fund originated from a legal settlement tied to President Donald Trump’s lawsuit against the Internal Revenue Service. The agreement also included protections shielding Trump and members of his family from certain tax audits.

The settlement drew criticism because the proposed fund’s payouts could have extended to individuals involved in the Jan. 6, 2021, Capitol riot. That provision became a major point of contention among several Republican senators reviewing Blanche’s nomination.

Two of the most vocal critics were Sens. John Cornyn of Texas and Thom Tillis of North Carolina. Both lawmakers made clear that their support for Blanche depended on the administration abandoning the fund.

Following Sunday’s announcement, Cornyn’s office confirmed that an agreement had been reached with the Department of Justice.

According to Cornyn spokesperson Natalie Yezbick, the department agreed to issue a formal written order permanently terminating the fund while also clarifying that the settlement’s audit-related provisions apply only to the original plaintiffs, including President Trump and the IRS.

Although Cornyn and Tillis had previously indicated that other senators shared their concerns about the fund, neither senator serves on the Senate Judiciary Committee, meaning they could not vote on Blanche’s nomination until it reaches the full Senate.

Both senators have also experienced public disagreements with Trump in recent months. Tillis previously announced he will not seek re-election, while Cornyn lost his Republican primary to Trump-backed challenger Ken Paxton.

Blanche had already testified before Congress that the fund was effectively dead. However, President Trump said Saturday that he intended to “push hard” to revive it, raising fresh questions about the issue before Blanche’s latest order.

Separately, Sen. John Kennedy, R-La., a member of the Senate Judiciary Committee, said during an appearance on NBC News’ “Meet the Press” that if legislation were ever introduced to formally establish the $1.8 billion fund, he would support excluding Jan. 6 participants from receiving any benefits.

Sunday’s order also narrows another aspect of the original settlement involving tax audits. The revised language specifies that the agreement applies only retroactively to claims that were already open at the time the settlement was reached. It also makes clear that the arrangement does not prevent future examinations of President Trump’s tax filings.

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