Todd Blanche AG Confirmation Stalled Over $1.776 Billion IRS Fund Dispute

by ethan.brook News Editor
Acting Attorney General Todd Blanche appears before the Senate Judiciary Committee on Capitol Hill in Washington, Wednesday

The Senate Judiciary Committee has delayed a vote on Todd Blanche’s nomination for attorney general after Republican senators demanded written assurances regarding a controversial IRS settlement. The hold-up, driven by concerns over tax immunity and a scrapped $1.776 billion fund, puts Blanche’s path to a permanent appointment in doubt.

Todd Blanche, who has served as acting attorney general for three months following the departure of Pam Bondi, is currently facing a stalled confirmation process. While the Senate Judiciary Committee was expected to vote on Thursday to advance his nomination, lawmakers scrapped the planned vote on Wednesday night. A committee spokesperson stated the postponement was necessary as work continues to secure sufficient support.

The $1.776 Billion Anti-Weaponization Fund Dispute

The primary friction point involves a settlement resulting from President Trump’s $10 billion lawsuit against the IRS over leaked tax returns. Part of that agreement originally included the creation of a $1.776 billion Anti-Weaponization Fund designed to compensate individuals who believed they were wronged by the Justice Department.

Following bipartisan outrage, the Justice Department announced in June that it would not move forward with the fund. However, Republican Senators John Cornyn and Thom Tillis have pushed for a formal written commitment that the fund is dead. During his hearing, Blanche confirmed that the settlement remains an enforceable contract, suggesting that while the DOJ cannot be forced to move forward with the fund, Trump’s attorneys could try to enforce the contract by claiming a breach.

“earmark billions of dollars from American taxpayers to redress grievances not defined in the law.”

Federal Judge, via NPR

The judge overseeing the IRS case described the settlement as an attempt to use the court to legitimize taxpayer-funded redress and noted that Trump had effectively engaged in self-dealing. The judge further expressed concern that Blanche signed the settlement despite his previous role as Trump’s attorney.

Tax Immunity and Senator Cornyn’s Demands

Beyond the fund, Senators Cornyn and Tillis are scrutinizing a provision that protects Trump, his family, and his businesses from IRS audits of past tax returns. Sen. Cornyn, R-Texas, has accused the Justice Department of stonewalling and stated that the ball is in Blanche’s court to resolve the matter.

Todd Blanche Senate Confirmation Hearing to be Attorney General

Cornyn is seeking a modification to the settlement to ensure that the immunity applies only to existing audits and does not shield the president from the examination of future tax filings. This tension is compounded by political friction; President Trump suggested Cornyn might be upset because the president endorsed Ken Paxton, who defeated Cornyn in the Republican primary.

Blanche’s Loyalty and the “Kinsley Gaffe”

The confirmation hearing also highlighted concerns regarding the independence of the Justice Department. When asked by Sen. John Kennedy if he and the president were friends, Blanche initially responded, I’m his lawyer, before quickly correcting himself to say, Was his lawyer. And now I’m the deputy attorney general.

Sen. John Cornyn, R-Texas, speaks during a hearing of the Senate Judiciary Committee with Acting Attorney General Todd
Photo: wral.com

This slip of the tongue underscored a broader Democratic critique. Sen. Cory Booker, D-N.J., argued that Blanche’s relationship with Trump casts a shadow over any ideas of independence.

Blanche has defended his record, citing the department’s successes in fighting fraud, drug cartels, and violent crime.

The Path to Confirmation

Blanche’s ability to secure the permanent role depends on unanimous Republican support to clear the committee. While Sen. Thom Tillis told Blanche he had done a great job today at the conclusion of his questioning, the lack of written assurances on the IRS deal remains a significant hurdle.

Todd Blanche AG Confirmation Stalled Over $1.776 Billion IRS Fund Dispute
Photo: theatlantic.com

If the Senate rejects his nomination, Blanche may still lead the department as acting attorney general. He has already spent three months in this interim capacity, having previously won Senate confirmation early in Trump’s second term to serve as deputy attorney general. The Justice Department reportedly sent new language to Senators Cornyn and Tillis on Wednesday evening in an attempt to satisfy their demands and move the nomination forward.

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