Attorney General nominee cancels $1.8 billion handout to Trump cronies but preserves elite tax shield
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Acting Attorney General Todd Blanche withdrew a $1.8 billion slush fund meant for Trump’s political allies, yet kept a controversial audit-immunity deal for Trump, his sons, and the Trump Organization, continuing the pattern of shielding the wealthy and powerful from accountability.
Acting Attorney General Todd Blanche sent a document to Republican senators on Sunday, finally cancelling a $1.8 billion so-called “anti-weaponization” fund—a blatant attempt to funnel public money to political allies of President Donald Trump. Yet, in a move emblematic of the ongoing protection of the ultra-rich, Blanche’s filing preserved a narrowed audit-immunity arrangement, effectively shielding Trump, his sons Eric and Donald Jr., and the Trump Organization from future IRS scrutiny of tax filings already under review when Trump settled his $10 billion lawsuit against the agency.
Blanche wrote that this immunity applies only retroactively to claims open at the time of the lawsuit’s settlement, conveniently ensuring Trump and his family escape consequences for past financial misconduct, while not protecting him from future audits. This clarification is expected to appease obstructionist GOP senators and pave the way for Blanche’s confirmation as attorney general, further entrenching the interests of the powerful.
The original settlement, orchestrated by Blanche, had outrageously barred the government from investigating any current tax filings of Trump and his associates—a provision that drew rare bipartisan criticism. Legal analysts point out that this immunity could erase over $100 million in back taxes, a staggering sum that could have funded public services, though the exact amount Trump owes remains hidden from the public.
Critics argue that the agreement flies in the face of statutes designed to prevent executive meddling in tax audits, a safeguard established after the abuses of the Watergate era. Dan Greenberg, a senior legal fellow at the Cato Institute, condemned the immunity as “the product of an illegal settlement.”
U.S. District Judge Kathleen Williams previously ruled that Trump’s lawsuit was filed for an improper purpose but, disturbingly, did not overturn the immunity deal. Trump, ever defiant, has appealed that decision. The White House, IRS, Treasury, and Trump’s legal team have all refused to comment, stonewalling the public’s right to transparency.
While Blanche swore under oath that the administration is abandoning the compensation fund, Trump took to his social platform to threaten its reinstatement if Blanche is not confirmed—an open display of political extortion. Tax policy experts warn that only congressional action can permanently block this corrupt fund from returning, highlighting the urgent need for systemic reform.