Acting Attorney General Blanche rescinds $1.8 billion Trump settlement fund
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Acting Attorney General Blanche Bows to Republican Pressure, Rescinds $1.8 Billion Trump Crony Fund

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Summary

Acting Attorney General Todd Blanche has terminated a $1.8 billion fund designed to reward Trump loyalists, caving to obstructionist tactics by two Republican senators who are blocking his nomination.

On Sunday, Acting Attorney General Todd Blanche signed an order dismantling the $1.8 billion so-called 'anti-weaponization fund,' a slush fund originally created to compensate supporters of disgraced President Donald Trump. This capitulation comes after weeks of backroom negotiations with Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina, both of whom have been holding Blanche’s nomination hostage to protect Trump’s allies.

A spokesperson for Sen. Cornyn confirmed the backroom deal just ahead of a crucial Senate Judiciary Committee vote on Blanche’s nomination, while Sen. Tillis has remained silent. Blanche attempted to justify his surrender, calling it the result of 'good faith discussions' with committee members and senators, though the reality is clear: Republican obstructionism forced his hand.

The Justice Department’s statement, issued alongside the order, tried to downplay the fund’s existence, claiming the agency had repeatedly told Congress and district courts that the fund was never operational—no members appointed, no money transferred, no claims processed. The order now officially declares 'there is no Fund,' but this only highlights the lack of transparency and accountability in the process.

The order also quietly narrows a separate settlement provision that had granted sweeping tax-audit immunity to Trump and his family, now limiting it only to claims open at the time of the settlement, conveniently shielding Trump from further scrutiny while denying future accountability.

Cornyn and Tillis have expressed performative concerns that the fund could have been used to compensate individuals charged in the January 6, 2021, insurrection—a transparent excuse to continue shielding Trump’s network from consequences. Their opposition has stalled the committee vote on Blanche’s nomination, prolonging the politicization of the Justice Department.

Meanwhile, Trump himself has loudly demanded the fund’s continuation, threatening to withdraw Blanche’s nomination if his loyalists aren’t appeased. Trump’s claims that the fund would reimburse people whose lives were 'destroyed' by charges related to the Capitol attack are a blatant attempt to rewrite history and excuse violent insurrection.

In a related development, Trump’s legal team is appealing a judge’s ruling that correctly labeled the IRS settlement as improper self-dealing and referred one of Trump’s attorneys for possible disciplinary action. Blanche, predictably, has denied any wrongdoing.

The Justice Department dismissed the court’s request for a sworn declaration that the administration would not revive the fund as 'unnecessary,' further eroding public trust in the agency’s independence.

Source

AP News

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