Acting Attorney General Todd Blanche has rescinded the Anti-Weaponization Fund
to secure confirmation from Republican senators, but a deal granting tax audit immunity to Donald Trump, his sons, and the Trump Organization remains in effect, potentially wiping away more than $100 million in back taxes.
The move comes as a calculated trade-off to clear the path for Blanche’s appointment as attorney general. By killing a controversial slush fund, Blanche has appeased key GOP holdouts, but the core benefit of the deal—a shield against the Internal Revenue Service—survives.
The Terms of the IRS Immunity Deal
The tax immunity was originally established as part of a settlement to resolve a $10 billion lawsuit Trump filed against the IRS in January over the leak of his tax information. While the Anti-Weaponization Fund
has been terminated, the tax protections remain a central pillar of the agreement.
To satisfy skeptical lawmakers, Blanche issued a new order clarifying that the immunity applies only retroactively to claims that were open at the time of the settlement. This means the government is barred from continuing ongoing audits of past returns, though Trump remains subject to audits of future tax filings.
The scope of this protection is limited to specific entities: Donald Trump, his sons Eric and Donald Jr., and the Trump Organization. This narrowing of the field addressed concerns from senators that the immunity might have extended to unaffiliated Trump associates.
The $1.8 Billion “Anti-Weaponization Fund”
The most volatile element of the original deal was the creation of a $1.8 billion fund intended to compensate political allies.
Despite the president’s public support for the fund, Blanche issued a formal order Sunday night stating the fund is rescinded and shall have no force or effect. This action was a direct response to pressure from Sen. John Cornyn and Sen. Thom Tillis, who had signaled they would block Blanche’s nomination unless the fund was terminated in writing.
Legal Challenges and Judicial Sanctions
The legitimacy of the entire settlement has been under fire in the courts. U.S. District Judge Kathleen Williams ruled in July that Trump’s lawsuit was filed for an improper purpose
. While the judge did not void the tax immunity, she stated the government cannot claim in official proceedings that the agreement resulted from a legitimate legal process.
The judge referred Justice Department lawyers for sanctions, characterizing the case as an attempt to use the court to grant immunity to the president and his affiliates. Trump has since appealed that ruling.
Some legal experts suggest the agreement may violate a 1976 statute designed to prevent executive branch interference in tax audits—a rule established following the Watergate scandal to prevent presidents from using the IRS against political enemies.
The Financial Stakes for the Trump Organization
The financial implications of the remaining tax immunity are substantial. While the exact amount of the president’s debt is not public, the deal has the potential to wipe away more than $100 million in back taxes stemming from years-long audits.
Other victims of the same IRS contractor who leaked Trump’s data have sued the government but were rebuffed in court, whereas Trump’s lawsuit resulted in a settlement that grants him unprecedented audit protection.
Senate Confirmation and Remaining Uncertainty
The resolution of the fund dispute appears to have cleared the path for Blanche’s confirmation. Sen. Cornyn and Sen. Tillis issued a joint statement saying they would support the nomination now that the anti-weaponization fund is formally terminated and the audit settlement is limited to the named plaintiffs.
The group Democracy Forward, which sued to stop the fund, argues that the administration has refused to sign a sworn declaration in court to kill the fund. Skye Perryman, president of Democracy Forward, stated, The American people are not fooled by this latest move and neither are we.
While Blanche maintains the fund is dead, Trump posted on Truth Social on Saturday that he would push hard
for the fund if Blanche were not confirmed, leaving a lingering question about whether the fund could be resurrected through a different mechanism once Blanche is officially in power.
Worth a look
