The rescission follows a weeks-long standoff with key GOP members of the Senate Judiciary Committee. In a signed order posted to X, Blanche stated that the May 18, 2026, order establishing the fund is rescinded and shall have nor force or effect
, adding that the document establishes, beyond any doubt, that there is no fund
.
Terms of the Senate Agreement
The decision comes after Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina threatened to block Blanche’s nomination unless the administration put the termination of the fund in writing. While Blanche had previously testified on July 15, 2026, that the fund was dead, and the Justice Department had informed courts the program was abandoned, officials had previously declined to provide a written commitment.
According to Natalie Yezbick, a spokesperson for Sen. Cornyn, the Texas Republican reached an agreement with the Department of Justice to permanently terminate the fund and establish a binding written document regarding the scope of a related IRS settlement. The Sunday order clarifies that an addendum offering the president and his family immunity from tax investigations applies by its terms only retroactively
and is limited to the named parties in the lawsuit and the IRS.
Origins and Controversy of the Fund
The $1.8 billion fund was created as part of a settlement agreement stemming from a lawsuit filed by President Donald Trump against the IRS. The agreement was designed to offer taxpayer money to individuals who claimed they were victims of federal government weaponization. This included potential payouts to participants in the January 6, 2021, U.S. Capitol riot.
The fund’s potential for paying January 6 rioters drew sharp criticism. Sen. Thom Tillis described the fund as a payout pot for punks
and suggested that President Trump intended to resurrect it. Similarly, Sen. John Kennedy, R-La., stated on Sunday that he would exclude January 6 rioters from any legislation that might codify the $1.8 billion fund.
President Trump’s Response
The agreement emerged after a period of tension in which President Trump defended the fund on Air Force One, describing it as a reimbursement for the pain
suffered by his allies. On Saturday, Trump threatened that if the Senate did not approve Blanche, he would push hard
to revive the fund or put the idea back on the table
.
Trump also suggested on Friday that he might withdraw Blanche’s nomination and resubmit it next year, after Sen. Cornyn and Sen. Tillis leave Congress. Tillis has announced he will not seek re-election, and Cornyn was defeated by Trump-endorsed primary challenger Ken Paxton.
Impact on Confirmation Timeline
The Senate Judiciary Committee is scheduled to vote on Blanche’s nomination on Tuesday. An initial vote scheduled for last week was called off due to the objections raised by Cornyn and Tillis. Because Democrats are entirely opposed to the nomination, any Republican defection is considered potentially fatal to Blanche’s confirmation.
Senate GOP leaders are seeking to confirm Blanche, who has served as acting attorney general since Pam Bondi resigned in April, before the end of the current week. In his Sunday announcement, Blanche noted that his team had met with senators over the past several weeks to address any concerns or outstanding questions
.
The Justice Department further clarified in the Sunday order that the fund was never fully operative, stating that no members were appointed, no funds were transferred, and no claims were paid. However, the order noted that the formal rescission was necessary because at least one court had declined to dismiss lawsuits challenging the fund as moot.
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