U.S. politics: Acting AG Todd Blanche rescinds $1.8 billion “Anti-weaponization” fund

August 3, 2026
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By Richard Benjamin

Acting Attorney General Todd Blanche has formally rescinded the $1.776 billion “anti-weaponization” fund created through a controversial settlement involving President Donald Trump’s lawsuit against the IRS.

Blanche’s decision comes after weeks of resistance from Republican senators John Cornyn of Texas and Thom Tillis of North Carolina, who had withheld support for his nomination to become permanent attorney general. The senators had demanded written assurances that the fund would be permanently eliminated and that related protections restricting IRS audits would be narrowly applied. (Reuters)

Under the new order, Blanche rescinded the May 18 directive establishing the fund, stating that it has no force or effect. The Justice Department also clarified that the related IRS audit protections apply retroactively only to the specific plaintiffs covered by the settlement. (Reuters)

The move could remove a major obstacle to Blanche’s confirmation as attorney general. The Senate Judiciary Committee is scheduled to consider his nomination on Tuesday, with the outcome expected to determine whether his nomination can advance to the full Senate. (ABC News)

However, the broader settlement remains a point of contention. Axios reported that Blanche’s order rescinds the directive creating the fund but does not itself undo the underlying settlement provision that called for its creation.

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