Acting Attorney General Todd Blanche has formally rescinded a controversial $1.8 billion "anti-weaponization fund" that had stalled his nomination to permanently lead the Justice Department, ending a weeks-long standoff with two key Senate Republicans.

Blanche issued the order late Sunday, writing, "The Attorney General's May 18, 2026 Order establishing the Anti-Weaponization Fund ('Fund') is rescinded and shall have no force or effect." He announced the move in a statement on X. "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."

Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina, who had threatened to block Blanche's confirmation over the fund, said Monday they would now support his nomination. In a joint statement, the senators said they were "pleased that the Department of Justice has issued a formal order terminating the anti-weaponization fund" and said they "look forward to voting to advance his nomination." Cornyn spokesperson Natalie Yezbick added that the department would issue "a formal order permanently terminating the anti-weaponization fund and making clear in a binding written document that the scope of the audit settlement is limited to only the plaintiffs, including the President, and the IRS."

What the Fund Was Meant to Do

The fund stemmed from a May settlement tied to an IRS audit agreement and was designed to set aside roughly $1.8 billion in taxpayer money to compensate people who claimed they were unfairly prosecuted or targeted by the Justice Department, including some allies of President Trump. Blanche told lawmakers the fund would not move forward, saying no members had been appointed to direct it, no funds had been transferred and no claims had been paid.

Notably, Blanche's new order rescinds the May implementation order but not the underlying settlement provision that originally required the attorney general to create the fund. According to Axios, that settlement's terms can only be changed through a written agreement involving Trump, his family and the Trump Organization, none of whom signed Sunday's order alongside Blanche.

A Legal Fight That Complicated the Politics

The fund had already drawn legal scrutiny before Sunday's order. U.S. District Judge Kathleen Williams found that Trump's initial lawsuit tied to the settlement appeared aimed at manipulating the judicial process, since Trump effectively controlled both sides of the litigation, though she stopped short of ruling on whether the underlying agreement was enforceable as a private contract. Separately, U.S. District Judge Leonie Brinkema had barred the Justice Department from operating the fund, while U.S. District Senior Judge Richard Leon declined to block it in a different case after the department said it wasn't moving forward.

Blanche also used Sunday's order to clarify the scope of related tax audit protections announced in May, saying those protections apply only retroactively and only to the settlement's named plaintiffs, Trump, some of his family members and the Trump Organization.

A Late Complication From Trump

The negotiations nearly unraveled over the weekend when Trump threatened to keep Blanche in an acting role rather than confirm him permanently, and to push for legislation reviving the fund. "If Senators Cornyn and Tillis, both upset because I wouldn't Endorse them (they lost, and quit, respectively!), aren't going to approve Todd Blanche... then I will keep Todd as Acting A.G., and push hard to get the Anti-Weaponization Bill... PASSED," Trump wrote on Truth Social Saturday.

Despite that threat, Blanche's order moved forward, and Cornyn and Tillis reversed their opposition Monday. The Senate Judiciary Committee is scheduled to vote on Blanche's nomination Tuesday. Sen. John Kennedy, a Louisiana Republican on the committee, told NBC News' Meet the Press Sunday that he would exclude Jan. 6 defendants specifically from any future legislation codifying a similar fund. Some supporters of the original fund have also noted that the rescinding order doesn't explicitly bar the Justice Department from making future payouts to Jan. 6-related defendants, according to ABC7.

Both Cornyn and Tillis are not seeking reelection, Cornyn lost his primary earlier this year to Trump-backed challenger Ken Paxton, while Tillis, a frequent Trump critic, opted not to run again.

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