Blanche's AG bid back on track after DOJ scraps Trump's 'Anti-Weaponization Fund' in Cornyn deal

Acting AG Todd Blanche has issued a formal order rescinding plans to create a $1.8 billion fund as part of the settlement of Trump's IRS lawsuit
The breakthrough follows several days of public disagreement between President Donald Trump and Senator John Cornyn over Acting AG Todd Blanche's nomination (Getty Images)
The breakthrough follows several days of public disagreement between President Donald Trump and Senator John Cornyn over Acting AG Todd Blanche's nomination (Getty Images)

WASHINGTON, DC: Acting Attorney General Todd Blanche moved a step closer to winning Senate confirmation after the Justice Department reached a last-minute agreement with Republican Senator John Cornyn, resolving concerns over a controversial settlement tied to President Donald Trump's lawsuit against the IRS.

The agreement, announced Sunday, August 2, comes ahead of Tuesday's Senate Judiciary Committee vote on Blanche's nomination to become attorney general permanently. With Democrats expected to oppose the nomination, Republican support on the committee is considered essential for Blanche to advance.

Acting Attorney General Todd Blanche appears before the Senate Judiciary Committee on Capitol Hill in Washington, Wednesday, July 15, 2026. (AP Photo/Mark Schiefelbein)
Acting Attorney General Todd Blanche appears before the Senate Judiciary Committee on Capitol Hill in Washington on Wednesday, July 15, 2026 (AP Photo/Mark Schiefelbein)

DOJ rescinds disputed $1.8B fund to secure GOP support

After weeks of negotiations, Blanche announced that the Justice Department had officially rescinded the proposed $1.8 billion "Anti-Weaponization Fund," one of the primary sticking points for Cornyn and Senator Thom Tillis.

"My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions," Blanche wrote on X (formerly Twitter). "We have enjoyed good faith discussions, and as a result issue the following order and update with regard to the May IRS settlement."



An order attached to the post states that the attorney general's May 18 order establishing the fund "is rescinded and shall have no force or effect."

The Justice Department also issued a written clarification limiting the scope of an IRS audit settlement tied to Trump's lawsuit, stating that the agreement applies only to the named plaintiffs, including the president and his family.

President Donald Trump speaks to reporters onboard Air Force One while returning to the White House, Sunday, Aug. 2, 2026. (AP Photo/Jacquelyn Martin)
President Donald Trump speaks to reporters onboard Air Force One while returning to the White House on Sunday, August 2, 2026 (AP Photo/Jacquelyn Martin)

Cornyn spokesperson Natalie Yezbick confirmed the agreement, saying the department would issue "a formal order permanently terminating the anti-weaponization fund" while making clear "the scope of the audit settlement is limited to only the plaintiffs, including the President, and the IRS."

Sen. John Cornyn, R-Texas, speaks during a primary runoff election night event after losing the Republican party's nomination Tuesday, May 26, 2026, in Austin. (AP Photo/Ashley Landis)
Sen John Cornyn (R-Texas) speaks during a primary runoff election night event after losing the Republican Party's nomination on Tuesday, May 26, 2026, in Austin (AP Photo/Ashley Landis)

The fund had drawn criticism because it stemmed from Trump's lawsuit against the IRS and could have been used to compensate political allies, including some individuals connected to the January 6 Capitol attack.

Deal clears major obstacle before upcoming confirmation vote

The breakthrough follows several days of public disagreement between Trump and Cornyn over Blanche's nomination.

Earlier in the week, Trump suggested Cornyn's opposition stemmed from disappointment over not receiving the president's endorsement in this year's Texas Republican Senate primary. Cornyn rejected that explanation, insisting his objections were focused solely on the settlement agreement and Blanche's earlier testimony before the Senate Judiciary Committee.



The Texas senator had argued that while Blanche testified the fund would not move forward, the written settlement still needed to be revised to permanently eliminate it and clarify the tax audit provisions.

NEW YORK, NEW YORK - APRIL 19: Former U.S. President Donald Trump (R) sits with his attorney Todd Blanche (L) during his criminal trial as jury selection continues at Manhattan Criminal Court on April 19, 2024 in New York City. Trump was charged with 34 counts of falsifying business records last year, which prosecutors say was an effort to hide a potential sex scandal, both before and after the 2016 presidential election. Trump is the first former U.S. president to face trial on criminal charges. (Photo by Mark Peterson - Pool/Getty Images)
President Donald Trump sits with his attorney Todd Blanche during his criminal trial as jury selection continues at Manhattan Criminal Court on April 19, 2024, in New York City (Mark Peterson - Pool/Getty Images)

With the agreement now in place, Cornyn appears poised to support Blanche when the committee meets Tuesday. Senate Republican leaders are hoping to advance the nomination out of committee and complete Blanche's confirmation before the end of the week. 

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