The Justice Department formally rescinded a controversial $1.8 billion “anti-weaponizaton” slush fund written into President Donald Trump’s settlement with the IRS — but questions remain about its other provisions.WASHINGTON (CN) — The Senate appeared poised this week to advance and possibly even confirm Todd Blanche as President Donald Trump’s next attorney general following a late-night order from the Justice Department that seemed to satisfy the concerns of Republican holdouts.But while the agency said its order, which rescinded a broadly reviled $1.8 billion government slush fund, resulted from what it called “good faith discussions” with Blanche’s GOP skeptics, the move left burning questions about other controversial provisions stemming from the president’s settlement with the Internal Revenue Service.Things looked bleak for Blanche’s attorney general nomination on Friday, as the Trump administration sparred with Texas Senator John Cornyn and North Carolina Senator Thom Tillis, who for weeks expressed concerns about the so-called “anti-weaponization’ fund — as well as a provision in the agreement that blocked the government from ever investigating Trump’s past tax information.Cornyn in particular had repeatedly demanded Blanche issue a written order rescinding the slush fund and argued the settlement’s language opened the door for Trump or other plaintiffs to revive the program.Though the acting attorney general had long resisted such an action, he relented — at least in part — on Sunday night, issuing a brief memorandum declaring the anti-weaponization fund “shall have no force or effect.”And the Justice Department made clear that it was making this move begrudgingly, claiming in a statement accompanying the order that Blanche had been candid with lawmakers about the status of the slush fund.“Although the acting attorney general has repeatedly advised Congress through testimony, including under oath, as well as in written responses, that the fund is not moving forward, and the department has repeatedly represented to district courts that the fund is not moving forward, today’s order officially rescinds the May 18, 2026, order,” the agency said.The Justice Department added that Blanche “stands by” his testimony about the slush fund given to the Senate Judiciary Committee during a confirmation hearing last month.And the memo also includes a clause pointing out that the weaponization fund was never fully established and that no funds were transferred to potential claimants. Blanche has cited this claim repeatedly before Congress as he defended his refusal to issue a written order rescinding the program.The acting attorney general said in a separate statement that the order had come out of “good faith discussions” with Senate Republicans and that his agency “always welcomes and appreciates productive engagement with all members of Congress.”Missing from the Sunday night memo, however, was language walking back the IRS settlement’s immunity provision. The Justice Department said in its statement the release of claims “applies by its terms only retroactively.”The agency also did not address the terms of the settlement itself, which stipulate the agreement can only be modified “with the written agreement” of all parties involved. A spokesperson for Cornyn, however, told reporters the Justice Department would issue a “binding written document” limiting the scope of the settlement to the plaintiffs.Cornyn in recent weeks had worried the IRS settlement could permit the president or other plaintiffs in the case to resuscitate the weaponization fund or its other provisions through a future breach of contract lawsuit. Blanche, for his part, told the Texas Republican during his nomination hearing last month that while the parties theoretically file such a suit the result “would not be the revival of the fund.”The Senate Judiciary Committee last week cancelled its first attempt to advance Blanche’s nomination as negotiations faltered between the Justice Department, Cornyn and Tillis. Both lawmakers sit on the powerful judicial affairs panel and would have prevented the attorney general nominee from advancing to a final confirmation vote.The Republican holdouts earned sharp criticism from Trump, who suggested they were blocking Blanche because he’d orchestrated the ends of their political careers — Cornyn lost a tough primary earlier this year to a Trump-backed challenger, but Tillis last year announced his plans to resign.With the support of Cornyn and Tillis, Blanche will likely face a smooth path to confirmation. The Judiciary Committee is scheduled to vote on the nominee Tuesday morning.The Senate is expected to remain in session into the weekend to finish its remaining business before the August recess, meaning the attorney general nominee could get a confirmation vote as late as Saturday.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads
Senate gears up for redo on Todd Blanche after DOJ salves Republican skeptics
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