Quick Take
Acting Attorney General Todd Blanche formally canceled plans for the so‑called $1.8 billion “anti‑weaponization” payout, putting a big red stop sign on a proposal that had become a political headache. The move comes amid pressure from Senate Republicans and a flurry of lawsuits that had already slowed things to a crawl.
What Blanche Did
Blanche signed an order saying the fund is rescinded and has no force — in plain English: it’s gone. The order makes clear nobody was appointed, no money moved, no claims process was set up, and no payouts occurred. Still, multiple lawsuits had been filed and at least one judge wouldn’t toss them as moot, so he put the cancellation down on paper.
Why Now? Senators Said ‘Write It Down’
Republican Senators Thom Tillis and John Cornyn had threatened to block Blanche’s confirmation as a permanent attorney general unless the department produced a clear, written statement that the fund wouldn’t proceed. Their objections delayed a committee vote and pushed the department to formalize what officials had been saying: the payout plan wasn’t moving forward.
Tax Immunity — Narrowed, Not Gone
Blanche’s order also tightened up another piece of the settlement that had drawn attention: the tax‑audit immunity language. It now says that any immunity applies only to claims that were already open at the time of the settlement — it doesn’t shield future returns from examination. So, past open audits might be covered, but future tax filings remain fair game.
Inside the Back‑and‑Forth
Blanche says he’s been meeting with senators and staff to answer questions and that those conversations led to the order. Cornyn’s office said the senator reached an agreement with the Justice Department about the fund and the settlement’s scope. The Senate Judiciary Committee is still set to vote on Blanche’s nomination soon, after a short delay tied to these objections.
Trump’s Threat to Resurrect It
The president, meanwhile, warned he could try to revive the fund if key senators didn’t support Blanche — even suggesting he might keep Blanche in an acting capacity and press Congress or other channels to bring the payouts back. That prompted pushback from critics who say reviving the plan would be politically toxic.
Lawsuits and Labels
The fund had already been temporarily blocked by a federal judge and was the target of multiple suits. Opponents on both sides of the aisle — Democrats labeled it a “slush fund” and some Republicans raised alarms as well — made any realistic path forward look rocky.
Where Things Stand
For now, Blanche’s written order is intended to close the chapter: no fund, no money moved, and a narrowed tax‑immunity carve‑out. But the politics and litigation around the episode haven’t vanished — the court cases remain, senators are watching, and the dispute could flare up again if political winds change.
One Last Note
Senator Tillis was blunt in response, warning that the president seemed intent on trying other routes to resurrect payments and accusing the administration of trying to dodge accountability. In short: the paperwork says the fund is dead, but the drama? That’s still very much alive.
