Full Breakdown
Todd Blanche’s Attorney-General Nomination Stalls Over IRS Settlement Dispute
7/30/2026, 1:52:05 AM
Core Event
On July 29, 2026, acting Attorney General Todd Blanche hit a hurdle when Republican Senator John Cornyn of Texas canceled a meeting intended to resolve concerns about the settlement that ended President Donald Trump’s $10 billion lawsuit against the IRS. Cornyn said he will not support Blanche’s nomination until the Justice Department (DOJ) provides written assurances that the $1.8 billion “anti-weaponization” fund is permanently dead and that the audit-immunity provision is limited to past tax years. The Senate Judiciary Committee, with a 12-Republican-to-10-Democrat majority, is slated to vote on July 30, 2026, on whether to advance Blanche’s nomination. Without Cornyn’s and fellow Republican Thom Tillis of North Carolina, the vote cannot succeed.
Background & Context
In May 2026 the DOJ negotiated a settlement with Trump that granted him, his two eldest sons and the Trump Organization blanket immunity from IRS audits for tax years preceding the settlement and created a $1.8 billion fund to compensate individuals who claimed they were targeted by the Justice Department. The fund was scrapped in June after bipartisan outrage, but the settlement’s language still leaves the audit-immunity clause intact. Critics argue the deal gives the president tax benefits unavailable to ordinary taxpayers and could be revived to reward political allies.
Data & Statistics
- $10 billion – amount of Trump’s lawsuit.
- $1.8 billion – size of the proposed fund.
- 12-10 – Republican-Democrat split on the committee.
- July 30, 2026 – scheduled committee vote.
- July 28, 2026 – DOJ provided Cornyn’s office with a written proposal.
Official Statements & Responses
Cornyn said the DOJ has not supplied a document that meets his “red-line” requests, emphasizing that the fund must be formally rescinded and the audit-immunity scope narrowed to past filings only. He noted that committee chair Chuck Grassley set a 4 p.m. deadline on July 29 to decide whether the vote could proceed.
Tillis indicated his office is in “daily contact” with the DOJ and that a draft amendment is “almost there,” but he has not yet seen a final guarantee.
The DOJ confirmed that a written proposal was sent to Cornyn’s staff on July 28 and expressed willingness to continue discussions on remaining concerns.
President Trump described Blanche as “outstanding” and suggested Cornyn’s opposition might stem from personal political grievances rather than substantive policy issues.
Conflicting Reports & Gaps
Sources differ on whether the anti-weaponization fund has been formally terminated. The DOJ says the fund is no longer moving forward, yet the settlement text still references it, and no written amendment has been publicly released. Blanche has asserted that the audit-immunity provision applies only to the IRS and Treasury, while Cornyn seeks broader clarification to prevent other agencies from using the settlement to shield the Trumps.
What’s Next
The committee’s vote is set for July 30, 2026. If Cornyn and Tillis do not receive satisfactory written assurances by the deadline, Chairman Grassley may postpone the markup, halting Blanche’s advancement. The DOJ’s next steps—whether to issue a revised settlement document or negotiate further—will determine whether Blanche can secure the Republican support required for confirmation.
