Acting Attorney General Todd Blanche has formally rescinded the Trump administration’s proposed $1.8 billion anti-weaponization compensation fund, removing a major obstacle that had stalled his confirmation as the nation’s next attorney general.
The official order, released Sunday evening, permanently revokes the May 18 directive that created the controversial fund, which had been designed to compensate individuals whom President Donald Trump claimed were unfairly targeted by previous federal investigations and prosecutions.
Blanche announced the decision on social media, saying weeks of discussions with lawmakers had resolved outstanding concerns surrounding both the fund and his nomination.
Negotiations With Republican Senators Break Deadlock
The decision follows prolonged negotiations with Republican Senators John Cornyn and Thom Tillis, whose opposition had delayed Blanche’s confirmation despite Republicans controlling the Senate.
In his statement, Blanche said he and his team had met extensively with members of the Senate Judiciary Committee and other lawmakers to address lingering questions.
According to Blanche, those discussions were conducted in good faith and ultimately resulted in the formal order ending the compensation program.
A spokesperson for Cornyn later confirmed the agreement, while Tillis did not immediately issue a public response.
Official Order Removes Remaining Uncertainty
Although Blanche had repeatedly testified before Congress that the compensation fund would not proceed, lawmakers wanted written confirmation that the Justice Department could not later revive the initiative.
The accompanying statement issued with Sunday’s order emphasized that Blanche had consistently informed Congress, federal courts, and lawmakers that the program was no longer moving forward.
The latest directive officially rescinds the earlier order, ensuring it has no legal effect.
The Justice Department had previously resisted issuing a formal written cancellation, raising concerns among critics that the proposal might eventually return.
Tax Audit Immunity Provision Narrowed
In addition to ending the compensation fund, Blanche’s order also clarifies another controversial aspect of the earlier legal settlement involving tax audit protections for President Trump and members of his family.
The revised language specifies that the audit protections apply only to claims that were already pending when the settlement was reached.
The clarification makes clear that future tax filings by the president and covered family members remain subject to examination and are not shielded by the agreement.
Cornyn had publicly stated that he sought written confirmation that the protections were retrospective rather than extending indefinitely into the future.
Trump Continues to Support Compensation Plan
Despite the administration’s formal cancellation of the program, President Trump has continued to argue that those he believes were unfairly prosecuted deserve financial compensation.
Speaking to ABC News on Friday, Trump acknowledged that the fund was effectively dead but said he hoped it could eventually be revived.
He argued that many individuals had been mistreated by federal authorities and deserved reimbursement for the hardship they experienced.
During remarks aboard Air Force One on Sunday, Trump repeated that view, specifically referring to people prosecuted in connection with the January 6, 2021, Capitol attack.
He described many of them as having had their lives destroyed and suggested compensation would recognize the suffering they endured.
President Pressured GOP Holdouts Over Confirmation
The negotiations unfolded alongside increasingly public pressure from Trump directed at the Republican senators delaying Blanche’s nomination.
In a Truth Social post over the weekend, Trump warned that if Cornyn and Tillis refused to confirm Blanche as attorney general, he would simply retain him as acting attorney general while working to restore the compensation fund.
Trump praised Blanche as one of the country’s most respected legal professionals and argued that ending the fund had been a concession made solely to secure Senate approval.
Throughout the confirmation dispute, Trump maintained that the proposed fund was intended to compensate individuals whom he believes were politically targeted during the administrations of former Presidents Barack Obama and Joe Biden.
Blanche’s Confirmation Appears Increasingly Likely
With the written assurances now provided, the principal objections raised by Cornyn and Tillis appear to have been addressed, significantly improving Blanche’s prospects for confirmation.
Blanche, who previously represented Trump as a defense attorney in several criminal cases, joined the Justice Department as deputy attorney general before being elevated to acting attorney general following the dismissal of former Attorney General Pam Bondi in April.
Since assuming the department’s top role, Blanche has aggressively advanced the administration’s priorities while overseeing investigations involving individuals Trump has frequently criticized.
The Senate Judiciary Committee is scheduled to vote on Blanche’s nomination Tuesday, with the Republican-controlled Senate expected to consider his confirmation shortly afterward.
