2026-08-03 · contested story
Acting US Attorney General Todd Blanche rescinds controversial $1.8 b. anti-weaponization fund
Acting US Attorney General Todd Blanche formally rescinded President Trump's controversial $1.8 billion 'anti-weaponization fund' late on Sunday, August 2, 2026, after two Republican senators—John Cornyn of Texas and Thom Tillis of North Carolina—stalled his confirmation to become permanent attorney general. The fund, created as part of a settlement between Trump and the IRS over the leak of his tax returns, would have compensated people who claimed they were victims of government 'weaponization,' potentially including January 6 Capitol rioters. Blanche's written order stated the May 18, 2026 order establishing the fund 'is rescinded and shall have nor force or effect,' clearing the way for a Senate Judiciary Committee vote and satisfying holdout senators who had demanded written assurances rather than verbal promises. Trump had previously threatened to temporarily withdraw Blanche's nomination and reinstate him after Cornyn and Tillis leave office, while also vowing to push the fund into law through Congress.
How each side frames it
left
"the controversial $1.8 billion "anti-weaponization" slush fund that Blanche helped create for Trump earlier this year."
"Blanche has spent weeks distancing himself from his own twisted creation: the $1.776 billion "anti-weaponization" fund that provoked fierce backlash from Senate Republicans"
"Democrats spent much of the hearing tearing into the settlement... 'This all seems to be an obvious abuse of power by the Department of Justice, by the president. He negotiated essentially with himself.'"
"Humiliated Trump Admits Defeat in Key Battle"
"Blanche was central to the sweetheart deal that resulted in Epstein accomplice Ghislaine Maxwell being transferred to a cushy prison camp in Texas after he interviewed her last year in a bid to neutralize the scandal."
center
"The controversial fund — created as part of an agreement to settle a lawsuit from Trump against the IRS — was at the center of resistance to Blanche's nomination from Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina"
"Both Republicans and Democrats vehemently opposed the fund, which they characterised as a scheme to use taxpayer funds to reward Trump's allies."
"The 'anti-weaponization' fund, crafted as part of a legal settlement between Trump and the Justice Department to resolve his $10 billion lawsuit against the IRS over allegedly mishandling his tax records, was put on hold amid opposition from Republicans in Congress."
"Trump critics have derided it as a slush fund to reward supporters with taxpayer money."
"Trump seems to think the senators' concerns are totally unreasonable. But by limiting their demands to language tweaks, Cornyn and Tillis glide over the flagrant fraud that Blanche has perpetrated"
right
"'I think it's telling that everybody on the Left and everybody in the media immediately says it's a slush fund for President Trump's friends,' Blanche said. 'If anything else, that's an outright admission that they know that the people that really had this Department of Justice weaponized against them were President Trump and his friends.'"
"'Whether you're Hunter Biden or whether you're another individual who believes they were a victim of weaponization, they can all apply for this fund,' Blanche said"
"But sources familiar with the standoff told The Post that Cornyn 'has not been acting in good faith,' had canceled three meetings with Blanche and had already been handed written proposals for eliminating the fund."
""He just keeps moving the f–king goal posts," one person griped, adding that Tillis was "standing by his friend" in opposition to Trump."
"The Senate's duty is to check presidential abuses of power, not encourage them by rewarding his complicit subordinates with promotions."
What each side left out
The left left out — covered by the Washington Examiner
- Blanche's argument that the fund could compensate victims from both parties including Hunter Biden
- Blanche's defense that the fund was not limited to January 6 or Republicans
The left left out — covered by the New York Post
- Right-of-center sources claiming Cornyn canceled multiple meetings and was already handed written proposals
The right left out — covered by the Salon & HuffPost & The Boston Globe
- Judge Kathleen Williams' full ruling that the lawsuit was 'brought for an improper purpose' and constituted self-dealing
- The tax audit immunity provision that could save Trump $100 million
The right left out — covered by the Business Insider & Democracy Docket & New York Magazine
- Referral of Blanche and attorneys for potential bar discipline over the settlement
The center left out — covered by the The New Republic & The Daily Beast & Ms. Magazine
- The Epstein files controversy and survivors' opposition to Blanche as a factor in the confirmation fight
The left left out — covered by the Washington Examiner & The Hill
- Details that even Senate Majority Leader Thune and Ted Cruz privately criticized the fund, indicating broad GOP opposition not just partisan
What's actually true?
[verified] Blanche formally rescinded the $1.8 billion anti-weaponization fund via written order dated Sunday, stating it 'is rescinded and shall have nor force or effect'
[verified] The fund was created as part of a settlement of Trump's $10 billion lawsuit against the IRS over the leak of his tax returns
[verified] Senators Cornyn and Tillis withheld support for Blanche until they received written assurances the fund was dead and the audit immunity was limited to plaintiffs
[verified] U.S. District Judge Kathleen Williams ruled the Trump-IRS lawsuit was 'brought for an improper purpose' and that the parties were not adverse
[verified] Trump could keep Blanche as acting attorney general indefinitely even without confirmation under federal vacancies law
[verified] Trump threatened to temporarily withdraw Blanche's nomination and reinstate him after Cornyn and Tillis leave office
[verified] Blanche said 'Anybody can apply' for the fund and that even Hunter Biden could be eligible as a claimed victim of weaponization
[verified] Cornyn lost his GOP primary to Trump-endorsed Ken Paxton and Tillis chose not to seek reelection after clashing with Trump
The narrative clash
Whether the fund was a partisan 'slush fund' or a neutral weaponization remedy
Left: critics worried that this vaguely defined fund was a way for Trump to pass money to himself, his allies and Jan. 6 rioters
Right: 'It's not limited to Republicans. It's not limited to the Biden weaponization. It's not limited to in any way, scope or form to Jan. 6 or to Jack Smith. There's no limitation on the claims'
Who is blocking the deal — Trump/White House or the senators
Left: 'I think if this were just between me and Todd Blanche, we would have worked this out. But apparently he's getting some pushback from higher ups at the White House. I don't know who, but this doesn't need to be this hard,' Cornyn said
Right: sources familiar with the standoff told The Post that Cornyn 'has not been acting in good faith,' had canceled three meetings with Blanche and had already been handed written proposals for eliminating the fund
Whether Blanche is a qualified independent AG or Trump's personal lawyer
Left: his close relationship with Trump has sparked questions about his ability to lead the department independently, particularly after he admitted during his confirmation hearings that the White House was essentially running things
Right: Trump wrote in Thursday's post that Blanche 'is a STAR,' but... refusing to vote for this Great Nominee, who will remain, in any event, as Acting
92 sources analyzed
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