Blanche Rescinds $1.8B DOJ Fund, Clears AG Nomination

Todd Blanche’s confirmation fight cleared a major committee hurdle after he pulled back parts of a controversial DOJ settlement, resolving a standoff with senators who had threatened to block his nomination.

Acting Attorney General Todd Blanche ran into stiff resistance from Senate Republicans over provisions tied to a settlement that included a proposed $1.8 billion fund. Two senators raised objections that could have been enough to stop his nomination at the committee level, forcing a tense, dayslong negotiation. The dispute tested Republican leverage and the administration’s appetite for compromise.

At the center of the clash was a settlement the Justice Department reached in May to resolve claims involving leaked tax returns. The proposed fund would have compensated people who said they were victims of politically driven prosecutions, and that raised eyebrows on both sides of the aisle. Critics argued the language and scope needed clearer limits to prevent unintended consequences for DOJ policy.

Sens. John Cornyn of Texas and Thom Tillis of North Carolina pressed for changes and warned they might vote no in committee if their concerns were not addressed. Both senators are departing the Senate after this term, but their committee votes still carried weight right up to the deadline. A single negative vote from either could have stopped Blanche’s nomination dead in its tracks.

President Trump publicly threatened to pull the nomination rather than see it falter in committee, a move that amplified pressure on Blanche and the White House to find a solution. The president favors the settlement’s aims, but the political math in the Senate made a compromise the more viable option. Blanche ultimately moved to revise the deal to remove the most contentious elements.

https://x.com/DAGToddBlanche/status/2084114427813437897

Blanche’s decision to rescind parts of the settlement aimed to break the impasse without sacrificing the department’s core legal positions. The retreat was framed as clarifying language and narrowing scope rather than abandoning principle. That distinction matters to Republicans who want a tough, accountable Justice Department but also expect nominees to be confirmable.

Acting Attorney General Todd Blanche on Sunday formally rescinded key aspects of the Justice Department’s controversial legal settlement with President Donald Trump, a move toward breaking a dayslong impasse with Senate Republicans that had threatened to sink Blanche’s chances of being confirmed to the post.

In a social media post, Blanche highlighted two amendments to the deal the Justice Department struck in May to resolve Trump’s claims against the IRS over the leak of his tax returns to the media. The first formally eliminated the proposed nearly $1.8 billion fund for people who claim they were victims of politicized prosecutions, codifying in writing a pledge Blanche had previously made in sworn testimony.

The second change clarified a separate aspect of the deal that offered Trump, his sons and their affiliated business protections from past tax claims. The revised documents made clear that that protection would only apply retroactively and would not shield the Trumps from future audits.

Sens. John Cornyn (R-Texas) and Thom Tillis (R-North Carolina), both of whom are leaving the Senate after this year, had demanded changes and threatened to vote against Blanche’s nomination if their concerns were not addressed. A “no” vote from either one of them would have been enough to stop the nomination at the committee stage.

“My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions,” Blanche said late Sunday in his social media post. “We have enjoyed good faith discussions … The Department always welcomes and appreciates productive engagement with all members of Congress.”

Those formal rescissions targeted the largest sticking points: the proposed compensation fund and broad protections that could be read to shield future actions. By codifying that the fund was off the table and clarifying retroactivity, Blanche removed the language that senators argued would handcuff oversight. Republicans who sought clearer boundaries saw their demands reflected in the revised paperwork.

Making the changes bought Blanche enough goodwill to survive committee consideration, a practical win in a confirmation process where one swing vote can be decisive. The move underscored how much influence senators retain over executive branch appointments. It also showed that the threat of a blocked nomination can prompt quick adjustments from the administration.

The episode highlights a broader theme: Republicans expect nominees to be tough on politicized prosecutions while still being politically viable. Blanche’s willingness to alter the settlement was framed by allies as a strategic retreat to secure confirmation. That approach keeps the focus on confirming nominees who will enforce the law without becoming confirmation casualties.

Politically, the fight handed Trump a short-term victory in keeping the nomination alive while giving senators the clarity they demanded. The balance struck aims to preserve the administration’s legal posture on past disputes while avoiding a bruising scar on the nominee’s record. Republicans watching the process will take note of how leverage and negotiation shaped the result.

Looking ahead, Blanche faces the full Senate vote after clearing committee, and dynamics on the floor could differ from committee politics. Floor votes are tougher, with more senators free to stake out positions, but surviving committee is the critical first step for any nominee. The confirmation fight will remain a test of Republican unity and of how the party handles contentious DOJ priorities.

For now, Blanche remains the acting top law enforcement official with an intact path to confirmation, thanks to the revisions that addressed the most serious objections. The result keeps the nomination moving and keeps attention on how the Justice Department will handle both accountability and politically sensitive settlements. The next stop is the Senate floor, where the stakes will be clear and public.

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