Midnight Reversal Rescues AG Bid

A $1.8 billion “anti-weaponization” fund just got killed to save Todd Blanche’s shot at becoming the nation’s top lawman.

Story Snapshot

Senate Republicans cut a deal to advance Todd Blanche’s nomination as attorney general
A controversial $1.8 billion fund tied to President Trump’s IRS settlement was formally rescinded
Key GOP skeptics John Cornyn and Thom Tillis flipped to yes after written assurances
Blanche still faces heat over Trump’s tax audit immunity even as his path clears

A nomination rescued by killing a $1.8 billion fund

The Senate Judiciary Committee voted 12-10 to advance acting Attorney General Todd Blanche’s nomination, pushing President Trump’s choice one big step closer to leading the Justice Department.

Blanche had been stalled for weeks because Republicans on the committee refused to move until he fixed a settlement he approved in Trump’s lawsuit over leaked tax returns. That deal created a $1.8 billion “anti-weaponization” fund that many saw as a payout pool for Trump allies.

Todd Blanche's nomination for Attorney General officially advances to the Senate floor following a 12-10 committee vote after key GOP holdouts backed the nominee! pic.twitter.com/GK2QwKlfUK

— MEAWW News (@meawwcom) August 5, 2026

Republican Senators John Cornyn and Thom Tillis turned into the crucial gatekeepers. Both publicly objected that the fund could send money to January 6 rioters and other offenders who claimed the government had been “weaponized” against them.

They also warned that a broad promise of tax audit immunity for Trump and his businesses looked like special treatment, not equal justice under law. Without their votes, Blanche’s nomination would have died in committee.

The late-night deal that changed the vote

After weeks of bargaining, Blanche issued a new order late Sunday that formally rescinded his earlier directive creating the anti-weaponization fund. Cornyn later said the agreement had “driven a stake through the heart” of the fund, framing the reversal as a clean kill rather than a cosmetic tweak.

Written assurances to Cornyn and Tillis also narrowed how Blanche’s Justice Department would read the settlement, tightening audit protections and limiting who could benefit.

Reports say the clarifications now state that audit immunity applies only to past years’ tax returns and only to Trump, his two oldest sons, and the Trump Organization.

That let Tillis claim the settlement had been pulled back toward normal practice and away from blanket favors. Once those terms were in writing, both senators voted yes, giving Republicans the 12-10 party-line margin needed to move Blanche’s nomination to the Senate floor.

What still stands: Trump’s tax audit shield

Even with the fund gone, Trump’s core win from the Internal Revenue Service lawsuit remains in place. Blanche’s new order does not reopen or undo the settlement itself. Trump, his family, and his company still enjoy protection against new audits on past returns under the deal negotiated by Blanche’s Justice Department.

An Illinois Democrat warned that Blanche’s clarifying orders are not signed by Trump or his companies, so they could still go to court to enforce the original, broader language.

That unresolved immunity piece is where many conservatives feel torn. On one hand, Republican senators demanded and received the end of a huge fund that could have funneled taxpayer money to political allies.

On the other, the settlement still shields Trump from deeper tax scrutiny that many ordinary Americans would never get. For voters who care about equal treatment, that contrast will not fade quickly, even if the committee drama moves on.

Blanche’s record and Republican skepticism

Senator Chuck Grassley and other Republicans tried to center the debate on Blanche’s law-and-order record. Grassley highlighted Blanche’s prior Senate-confirmed service as deputy attorney general and backing from crime victims who call themselves Angel Families.

Blanche was confirmed to that number-two role in 2025 by a 52-46 vote, showing Republicans had once trusted him with major Justice Department power. That history helped leadership argue he was not some last-minute, politically chosen loyalist.

The fight over the fund showed another side of conservatives: deep suspicion of any giant pot of federal money that looks like a slush fund. Cornyn and Tillis forced a rollback that fits long-standing right-of-center worries about politicized payouts and unaccountable bureaucratic schemes.

Their hold also signaled that even in a Trump-led GOP, there are limits to how far senators will go to protect a president’s personal legal interests when taxpayer dollars and basic fairness are on the line.

What comes next and why the details matter

Blanche now heads to a full Senate vote with momentum, but not with the controversy behind him. The White House is urging Republicans to “confirm Todd Blanche without delay,” arguing the Justice Department needs a strong leader to tackle crime, border security, and national security.

Democrats are already warning that once Blanche is confirmed, Trump could try to revive parts of the settlement or push for new protections that stretch the system further.

The biggest unanswered questions sit in the paperwork the public cannot yet see. The exact settlement text, any side letters, and internal ethics reviews would show how far Blanche’s Justice Department went to favor Trump, and how much the Sunday night fix really pulled back.

Until those documents surface, critics will keep arguing this was a political rescue mission, and supporters will say Republicans forced needed guardrails. For citizens who still care about process, not just outcomes, this fight is a reminder: the fine print in government deals can matter as much as the headline vote.