What Happened
Acting U.S. Attorney General Todd Blanche formally withdrew President Donald Trump's proposed '$1.8 billion anti-weaponisation fund' late on Sunday, August 2, 2026. This action was taken to address concerns from two Republican senators, John Cornyn of Texas and Thom Tillis of North Carolina, who had been blocking Blanche's permanent confirmation as Attorney General. Blanche posted on X, formerly Twitter, stating he had 'met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions,' attaching a copy of a written order. The order explicitly states: 'This Order establishes, beyond any doubt, that there is no Fund.' This move follows weeks of negotiations and public statements where Blanche had verbally assured senators the fund was abandoned, but the holdouts demanded a formal, written rescission.
The withdrawal also included a clarification regarding a provision that would have shielded President Trump, his family, and their businesses from IRS audits of past tax returns. Blanche's second post on X indicated that language on this IRS immunity had been clarified, specifying that the agreement 'applies by its terms only retroactively' to claims open at the time of the settlement and does not protect against future tax filings. This formal action by Blanche is expected to clear the way for a confirmation vote in the Senate Judiciary Committee, which has a meeting scheduled for Tuesday, August 4, 2026.
What the Evidence Establishes
Evidence establishes that Acting Attorney General Todd Blanche issued a formal, written order on Sunday, August 2, 2026, explicitly terminating the '$1.8 billion Anti-Weaponization Fund.' This order, shared by Blanche on X, directly states, 'This Order establishes, beyond any doubt, that there is no Fund.' This action directly responded to demands from Republican Senators John Cornyn and Thom Tillis, who had previously stalled Blanche's nomination, insisting on a written guarantee rather than verbal assurances. A spokesperson for Senator Cornyn confirmed that an 'agreement with the Department of Justice' had been reached regarding the fund.
The fund, initially announced earlier this year, was intended to settle a lawsuit by President Trump against the Internal Revenue Service (IRS) concerning the leak of his tax returns. It aimed to compensate Trump allies for what they claimed were politically motivated prosecutions. The Justice Department had previously stated in court papers that the fund was not moving forward, but had refused a federal judge's request for a sworn declaration from Blanche and other officials, deeming it 'unnecessary.' The formal rescission also clarified the scope of a tax audit immunity provision, limiting it to past claims and not future filings, addressing another key concern of the holdout senators. No members were appointed, no funds transferred, and no claims were paid under the proposed fund.
Where the Accounts Conflict
While Acting Attorney General Todd Blanche's formal withdrawal of the fund is a clear, documented action, President Trump's public statements regarding the fund and Blanche's nomination have been inconsistent. On Friday, August 1, 2026, Trump stated the fund was 'dead.' However, over the weekend, he subsequently threatened to reinstate the plan if members of his party did not approve Blanche's nomination. He also indicated he was considering withdrawing Blanche's nomination entirely due to the stalled process. These conflicting statements from President Trump created uncertainty and directly contributed to the Republican holdout senators' insistence on a formal, written order from Blanche, rather than relying on verbal assurances.
Senator Tillis, one of the holdouts, had previously expressed concern that President Trump was still 'harbouring a plan to set up a payout pot for punks,' despite Blanche's earlier verbal commitments. This highlights a divergence between Blanche's stated intent to abandon the fund and President Trump's fluctuating public stance, which complicated the confirmation process. The Justice Department, through Blanche, consistently maintained the fund was not moving forward, even while Trump's rhetoric suggested otherwise. This conflict in messaging between the President and his acting Attorney General underscored the political pressure surrounding the nomination and the fund's controversial nature.
Context and Stakes
The proposed '$1.8 billion anti-weaponisation fund' and the associated IRS audit provision generated significant controversy, drawing alarm from Democrats and some Republicans. Critics argued the fund could be used to compensate individuals prosecuted in connection with the January 6, 2021, U.S. Capitol riot, including those convicted of assaulting police officers. This potential outcome was a major point of contention, fueling the opposition from Senators Cornyn and Tillis, who sought to prevent any such payments. The fund's connection to the Capitol riot and the perception of it as a 'payout pot for punks,' as Senator Tillis described it, elevated the political stakes considerably.
The confirmation of an Attorney General is a critical appointment, as the individual leads the Department of Justice, America's top law enforcement agency. Todd Blanche, who previously served as President Trump's personal lawyer in criminal cases, was elevated to Acting Attorney General after Pam Bondi was reportedly fired in April 2026. His aggressive pursuit of the administration's priorities and investigations into perceived political adversaries has been noted. The delay in his permanent confirmation due to the fund controversy underscored the Senate's role in vetting presidential appointments and the importance of ensuring the Attorney General's independence and adherence to ethical guidelines, particularly given a federal judge had already blocked the fund and expressed ethical concerns about it.
What to Watch Next
The immediate focus shifts to the U.S. Senate Judiciary Committee, which has a meeting scheduled for Tuesday, August 4, 2026. This meeting is expected to include a vote on Todd Blanche's nomination for Attorney General. With the formal withdrawal of the controversial fund and the clarification of the IRS audit provision, the primary obstacles raised by Senators John Cornyn and Thom Tillis appear to be resolved. Cornyn's spokesperson has already confirmed an agreement, suggesting his vote is now secured. Tillis, whose term expires in January 2027, has not yet commented on the formal withdrawal, but his previous statements indicated his concerns were specifically about the fund's existence.
Beyond the immediate confirmation vote, observers will monitor President Trump's reaction. His past conflicting statements, including threats to withdraw Blanche's nomination or revive the fund, suggest potential for further political maneuvering. While Blanche's formal order is legally binding, Trump's influence over his party and future actions remains a factor. Additionally, the appeal of the federal judge's ruling, which characterized the fund settlement as an improper exercise in self-dealing and referred one of Trump's attorneys for potential disciplinary action, will proceed independently. This legal challenge could still shed light on the ethical considerations surrounding the initial fund proposal and Blanche's involvement.
Bottom Line
Acting Attorney General Todd Blanche's formal withdrawal of the $1.8 billion 'anti-weaponisation' fund and the clarification of the IRS audit immunity provision have effectively removed the immediate political impediments to his permanent confirmation. This decisive action, taken in response to demands from Republican Senators John Cornyn and Thom Tillis, directly addresses the concerns that stalled his nomination for weeks. The written order, explicitly stating the fund's termination, provides the concrete assurance the senators required, moving past Blanche's earlier verbal commitments and President Trump's conflicting public statements.
The resolution of this contentious issue clears the path for a Senate Judiciary Committee vote on Blanche's nomination, likely on Tuesday, August 4, 2026. While the immediate political hurdle is overcome, the broader implications of the fund's proposal—its connection to the January 6th Capitol riot and the ethical questions raised by a federal judge—will likely continue to be debated. The episode underscores the significant influence of individual senators in the confirmation process and the complex interplay between presidential appointments, legislative oversight, and judicial review in high-stakes political environments.
DECLASSIFIED SOURCE: BBC - World (via Real-time Signal Upgrade)
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