Reported by 2 sources

The short version

  • Acting Attorney General Todd Blanche issued a formal order terminating the controversial compensation fund previously established by President Trump.
  • The move follows weeks of negotiations with Republican senators who had withheld support for Blanche's nomination to lead the Justice Department.
  • The new directive also restricts tax audit immunity for the president and his family to retroactive claims only, excluding future filings.

Acting Attorney General Todd Blanche issued a formal directive late Sunday terminating President Donald Trump’s $1.8 billion initiative designed to compensate political allies. The order effectively ends a program that critics had widely characterized as a slush fund and which had become a central point of contention in Washington. This decisive action arrives just days before the Senate Judiciary Committee is scheduled to vote on Blanche’s nomination to serve as the nation’s top law enforcement official.

For weeks, two Republican senators have blocked Blanche’s confirmation, citing concerns over the fund’s status and potential revival. Although Blanche had previously stated in public testimony and written responses that the initiative was not moving forward, the Justice Department had resisted providing formal written confirmation of its termination. This ambiguity fueled legislative anxiety that the program could be resurrected, particularly given President Trump’s continued vocal support for the concept during recent negotiations.

News Journal

The formal rescission appears to have satisfied the conditions set by the holdout senators. A spokesperson for Texas Senator John Cornyn confirmed that an agreement had been reached, while North Carolina Senator Thom Tillis did not immediately provide comment on the development. Blanche stated in a social media post that his team had engaged in good faith discussions with committee members and lawmakers to address outstanding questions, resulting in the issuance of the final order.

In addition to ending the compensation fund, the new directive modifies another aspect of a related settlement involving tax audit immunity for Trump and his family. The updated language clarifies that this protection applies only retroactively to claims that were already open at the time of the original settlement. It explicitly removes coverage for future tax filings, ensuring that the president remains subject to standard examination procedures going forward. President Trump had previously argued that individuals charged in connection with the January 6 Capitol attack suffered destroyed lives and deserved reimbursement for their pain.

Sources behind this briefing

Go to the original reporting

  • NPR↗Todd Blanche rescinds Trump's 'anti-weaponization fund' ahead of nomination hearing
  • The Guardian US Politics↗Blanche formally rescinds Trump’s $1.8bn ‘anti-weaponization fund’ ahead of nomination hearing