Blanche's Deal with GOP Senators Raises Questions on IRS Settlement Fund
By John Damon
Acting Attorney General Todd Blanche has cleared a major hurdle toward confirmation, striking a deal with two key Republican senators who had threatened to block his nomination. But the agreement leaves lingering questions about whether the controversial anti-weaponization fund tied to President Donald Trump's $10 billion IRS settlement is truly dead.
Senators John Cornyn of Texas and Thom Tillis of North Carolina had withheld support for Blanche over concerns about the settlement's creation of a nearly $1.8 billion fund. The fund was designed to reimburse alleged victims of government lawfare and grant Trump and his associates immunity from future IRS audits related to past conduct.
What Did Blanche Agree To?
On Sunday, Blanche announced he had issued an order rescinding the May Justice Department order that created the anti-weaponization fund. The order states the fund is terminated and has no legal effect. An accompanying memo clarifies that the settlement's immunity provisions apply only retroactively and do not bar future prosecutions.
Blanche emphasized the department's willingness to work with Congress. My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions, Blanche wrote. We have enjoyed good faith discussions, and as a result issue the following order and update with regard to the May IRS settlement.
Cornyn and Tillis expressed satisfaction with the move. We are pleased that the Department of Justice has issued a formal order terminating the anti-weaponization fund, they said in a joint statement. Additionally, the Department has acknowledged in a binding written document that the audit settlement is limited to the plaintiffs and the scope does not extend beyond the defendants in the lawsuit.
Grassley Schedules Confirmation Vote
Senator Chuck Grassley of Iowa, the Senate Judiciary Committee chairman, quickly scheduled a vote on Blanche's nomination for Tuesday morning. The move puts Blanche on track for a full Senate confirmation vote later this week, a significant step for the Trump administration.
Blanche's confirmation appeared all but certain after the deal, but questions remain about the fund's true fate. The original IRS settlement stated it could only be amended with the written agreement of all parties, including Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization. Blanche alone signed the new order, raising doubts about its enforceability.
Can the Fund Be Revived?
During his confirmation hearing, Blanche conceded under questioning from Cornyn that the settlement remains an enforceable document that Trump could potentially sue to enforce. Republican lawyer Mike Howell, who had sought a role on the fund's board, suggested the fund could easily be revived. Can be undone after Tuesday, Howell wrote Sunday. The Anti-Weaponization Fund is great.
Trump himself has defended the fund in recent days and even suggested supporting legislation to establish it through Congress. He had threatened to withdraw Blanche's nomination until Cornyn and Tillis leave the Senate next year.
Democrats Raise Concerns
Democrats in Congress remain strongly opposed to Blanche's nomination and pointed to flaws in the agreement. California Senator Adam Schiff wrote that the deal doesn't prevent payouts to violent insurrectionists in the future, alluding to concerns that January 6 defendants could qualify for the fund.
It doesn't prevent the admin from bringing the slush fund back from the dead next week or using DOJ's Judgment Fund for the same illicit purpose, Schiff wrote. It leaves in place a tax-immunity deal that could help Trump skip taxes on the $2.3 billion he made last year.
As the confirmation vote approaches, Iowans and Americans alike will watch closely to see whether Blanche's deal holds or if the fund could return under a different guise.