Full Breakdown
Acting Attorney General Todd Blanche Rescinds Controversial $1.8 Billion Fund
8/4/2026, 4:27:25 AM
Rescission of the Anti-Weaponization Fund
On May 18, 2026 Acting Attorney General Todd Blanche issued an order that formally rescinded the May 18, 2026 order establishing the “Anti-Weaponization Fund.” The order declares the fund “has no force or effect,” noting that no members were appointed, no money was transferred, and no claims were paid. The Justice Department had previously argued that pending lawsuits challenging the fund should be dismissed as moot.
Background and Senate Confirmation Stakes
The fund, announced in May as part of a settlement of President Donald Trump’s lawsuit against the IRS and Treasury Department, was intended to compensate individuals claiming political persecution. Republican Senators Thom Tillis and John Cornyn threatened to block Blanche’s confirmation unless the fund was put in writing as cancelled. Their opposition delayed a Senate Judiciary Committee vote that had been scheduled for Tuesday. President Trump responded on Truth Social, warning he might withdraw Blanche’s nomination and later promising to revive the payout mechanism if the senators did not support him.
Official Statements & Responses
He also clarified that the tax-audit immunity provision applies only retroactively to claims open at the time of the settlement, not to future filings. Senator Cornyn, citing the settlement language, asked whether a written agreement existed to modify the fund, to which Blanche replied that no such modification had occurred. President Trump publicly asserted that he would keep Blanche as acting AG and push for legislation to restore the fund, describing it as a remedy for perceived mistreatment by the Biden administration.
Criticism and Political Reaction
Democratic lawmakers have labeled the proposal a “slush fund,” and several Republicans besides Tillis and Cornyn have voiced opposition, questioning the fund’s legality and fiscal prudence. The combination of Senate resistance and the president’s ultimatum leaves the future of any similar payout mechanism uncertain.
Verbatim Quotes
- “My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions,” — General Todd Blanche, acting attorney
- “Has there been a written agreement of the parties to modify the settlement fund?” — John Cornyn, spokesperson
