The Deci Ion Come Ju T Day Before the Senate Judiciary Committee I Cheduled to Vote on Blanche' Nomination to Become Attorney General

The decision comes just days before the Senate Judiciary Committee is scheduled to vote on Blanche's nomination to become attorney general and follows weeks of negotiations with Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina. Here's what happened and why it matters. The fund was created as part of a legal settlement between Trump and the Justice Department to resolve Trump's $10 billion lawsuit against the IRS over the alleged mishandling of his confidential tax records.

Supporters argued the fund would compensate individuals they believed had been unfairly targeted by federal authorities. Critics, however, warned that taxpayer money could ultimately benefit Trump's political allies, including people charged in connection with the January 6, 2021, US Capitol riot. Blanche signed a formal order on Sunday rescinding the Justice Department's May 18, 2026 order that had established the fund.

In a statement, the Justice Department said Blanche had repeatedly informed Congress, district courts and lawmakers that the fund would not move forward. No members were ever appointed to administer the fund. The department concluded that the new order "establishes, beyond any doubt, that there is no Fund.

The move followed weeks of negotiations with Cornyn and Tillis, both members of the Senate Judiciary Committee. The two Republicans had refused to support Blanche's nomination until they received a legally binding written commitment that the fund would be permanently terminated and that the IRS settlement would not provide sweeping protection from future tax scrutiny. Cornyn's office confirmed that an agreement had been reached with the Justice Department before Tuesday's committee vote.

The revised order also narrows another controversial provision of the IRS settlement. The original settlement had been criticized for appearing to shield Trump, his family members and his companies from IRS audits involving tax returns filed before May 18, 2026. The audit protection now applies only retroactively to tax matters covered by the settlement and does not prevent the IRS from examining future tax filings submitted by Trump or his businesses. The Justice Department said Blanche stood by testimony he delivered before the Senate Judiciary Committee explaining the limited scope of the agreement.

After the Senate delayed Blanche's confirmation vote last week, Trump suggested he might withdraw Blanche's nomination if Republicans continued blocking it. On Sunday evening, Trump argued that many people prosecuted after the January 6 attack had "their lives destroyed" and described the proposed payments as reimbursement for the suffering they experienced. The Senate Judiciary Committee is expected to vote on Blanche's nomination on Tuesday.

While terminating the fund removes one of the biggest obstacles to his confirmation, the broader legal controversy surrounding Trump's IRS settlement continues. Trump's legal team has already appealed a federal judge's ruling criticizing the settlement as an improper act of self-dealing. The judge also questioned Blanche's involvement in negotiating the agreement because he had previously served as Trump's personal defense attorney."