Todd Blanche AG Nomination Stalls Over Trump IRS Settlement Dispute

by ethan.brook News Editor

Senate Republican leaders postponed a planned vote to advance Todd Blanche’s nomination to be President Donald Trump’s attorney general, according to CNN. The delay by the Senate Judiciary Committee throws the nomination into serious jeopardy as the Senate approaches its August recess, with key Republican senators refusing to advance the pick without written assurances regarding a controversial settlement between the Internal Revenue Service and President Donald Trump, as reported by UPI and bostonglobe.com.

Senate Postpones Blanche Nomination Vote Over IRS Settlement Dispute

A Judiciary Committee spokesperson acknowledged that Blanche’s nomination lacked the votes to succeed in committee, stating that Chairman Chuck Grassley works to set nominees up for success rather than failure. Senate Majority Leader John Thune encouraged the Trump administration to find a resolution with the holdout senators so the confirmation process can continue.

Origins of the Controversy Over the IRS Settlement

The legislative stalemate stems from a mid-May settlement agreement resolving a $10 billion lawsuit brought by Trump, his two oldest sons, and the Trump Organization against the IRS. The lawsuit was filed in response to the actions of a former contractor, who was convicted and imprisoned for leaking Trump’s 2019 and 2020 tax returns to news organizations. Under the settlement terms, the plaintiffs dropped the lawsuit in exchange for provisions halting certain IRS audits involving Trump, his family, and his business organization.

Photo: wishtv.com

Additionally, the agreement initially sought to establish a $1.776 billion anti-weaponization fund intended to compensate individuals who alleged they were victims of political weaponization by the Justice Department, which would have included people convicted of offenses related to the January 6, 2021, Capitol attack. The fund drew strong bipartisan opposition and legal challenges, and a federal judge blocked its implementation. While the Justice Department announced it was dropping the fund, Republican lawmakers noted that the provision remains part of the signed settlement document.

Senator Demands for Written Assurances

Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina pressed Blanche during a confirmation hearing regarding his decision to sign off on the agreement. Cornyn argued that the audit immunity provision provides exceptionally broad protections unavailable to ordinary taxpayers. The senators demanded formal, written assurances that the defunct fund cannot be legally revived and that the tax immunity shields only returns filed before the May 19 agreement rather than future tax filings.

Photo: upi.com

Cornyn stated that he had not seen responsive writing addressing his requests and remained uncommitted on the nomination, while Tillis indicated he would deny a committee quorum if an agreement was not reached. A person familiar with the matter stated that the Justice Department provided written proposals to Cornyn’s office and the committee to address the concerns. Blanche testified that the fund is dead and that the plaintiffs hold no power to revive it, though critics maintain the contract can be enforced as written unless formally modified by the parties.

Judicial Scrutiny and Administration Response

The settlement agreement has also drawn scrutiny outside of Congress. A federal judge issued a scathing ruling stating that the lawsuit amounted to collusion and self-dealing, expressing concern that Blanche signed the settlement given his prior role as Trump’s personal attorney. Blanche stated that he disagreed with the judge’s insinuations.

LIVE: Todd Blanche Attorney General Nomination in Doubt | Cornyn Questions Trump-IRS Settlement

President Trump downplayed concerns regarding the confirmation path, describing Blanche as an “outstanding” pick. When asked about Cornyn’s position, Trump suggested the senator might be upset because he did not endorse him in the Texas Republican primary, where Cornyn was defeated by a Trump-endorsed candidate.

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