Full Breakdown
Todd Blanche’s Attorney-General Nomination Stalls Over IRS Settlement Dispute
7/30/2026, 7:48:08 PM
Core Event
President Donald Trump announced Thursday that he would consider temporarily withdrawing Todd Blanche’s nomination to be U.S. attorney general until Republican senators John Cornyn of Texas and Thom Tillis of North Carolina leave office in January 2027. The Senate Judiciary Committee postponed its vote, citing the senators’ refusal to support the nominee without written assurances that the controversial $1.776 billion “anti-weaponization” fund will remain dead and that the tax-audit immunity provision in the Trump-IRS settlement will be limited.
Background & Context
In May 2025 the Justice Department settled President Trump’s $10 billion lawsuit against the IRS. The agreement created a $1.8 billion fund to compensate individuals who claimed they were “weaponized” by the DOJ and granted Trump, his family and related businesses broad immunity from IRS audits on returns filed before May 19 2026. Bipartisan critics called the fund a “slush fund” that could reward allies, including some convicted of the Jan. 6 attack. The DOJ announced in June that the fund would no longer be pursued, but the settlement text still contains the fund language and the audit-immunity clause.
Official Statements & Responses
- Senator Cornyn emphasized the need for a written document confirming the fund’s termination and narrowing the audit-immunity scope, saying the DOJ has “stone-walled” his requests.
- Senator Tillis echoed Cornyn, describing the situation as “above Blanche’s pay grade” and insisting the administration’s “bad advice” is preventing a resolution.
- Committee Chair Chuck Grassley (R-Iowa) announced the vote postponement, stating the committee will continue working to secure sufficient support.
- The Justice Department says it is in “regular communication” with the senators and has provided a draft proposal, but senators claim it does not meet their demands.
Criticism & Opposition
Democratic senators, uniformly opposed to Blanche, have highlighted the settlement’s potential to create unequal tax-audit protections and to allocate taxpayer money to political allies. The opposition to the fund is bipartisan.
Conflicting Reports & Gaps
- The DOJ asserts the anti-weaponization fund is “dead,” yet Cornyn and Tillis argue the settlement text still allows its revival and demand a formal written guarantee.
- The administration says the audit-immunity clause is limited to existing IRS audits, while the senators seek clarification that it does not protect future audits or extend to other agencies.
- No public written amendment to the settlement has been produced, leaving the legal status of the fund and immunity provision unresolved.
What’s Next
- The Senate Judiciary Committee has not set a new markup date; the vote could be rescheduled once the senators receive satisfactory written assurances.
- Trump has indicated he may re-nominate Blanche after Cornyn and Tillis leave office, but the outcome will depend on the 2026 midterm elections and whether Democrats gain control of the Senate.
- The Justice Department is expected to continue negotiations with the holdout senators and may submit revised settlement language in the coming weeks.
