Todd Blanche scraps $1.8bn fund amid Senate standoff

Todd Blanche, the US acting attorney general, said on Sunday he had reached an agreement with senators and issued an order scrapping a $1.8 billion compensation fund that had threatened his Senate confirmation.

Blanche's announcement followed a Senate Judiciary Committee delay in a vote on advancing his nomination. Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina had said they would withhold support until President Donald Trump's administration rescinded plans for the fund.

Blanche wrote on X that his team had met committee members and senators over several weeks and had addressed concerns and outstanding questions. A signed order attached to his post said the May 18 order establishing the Anti-Weaponization Fund was rescinded and "shall have no force or effect."

The fund stemmed from a settlement between Trump and his administration over the illegal disclosure of his tax records. It would have covered people claiming they were victims of politically motivated prosecutions and offered Trump, his family and businesses broad protection from tax audits and other government claims.

Opponents argued the fund had no clear legal basis, little public oversight and could be used to reward loyalists, including defendants convicted of crimes related to the January 6, 2021, assault on the US Capitol by Trump supporters.

Cornyn and Tillis had demanded a formal written commitment preventing the fund's revival and language narrowing the tax protections. There were no immediate responses from either senator to Blanche's post.

The Senate Judiciary Committee is due to vote on Blanche's nomination on Tuesday. Trump said on Thursday he could temporarily withdraw the nomination of Blanche, his former personal lawyer, and renominate him after Cornyn and Tillis leave office in January.