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DOJ Refuses to Kill IRS Deal—Blanche Confirmation Now in Jeopardy
Todd Blanche’s Attorney General Confirmation Hangs in Balance Over Controversial IRS Settlement
The Big Picture
Imagine you’re up for a big promotion at work, but your boss says, "We’ll give you the job only if you fix a messy situation from your past." That’s basically what’s happening with Todd Blanche, President Trump’s pick for Attorney General (the country’s top lawyer).
The Senate Judiciary Committee was set to vote on his confirmation Thursday, but two Republican senators—John Cornyn (Texas) and Thom Tillis (North Carolina)—are holding out. They want the Justice Department to put in writing that they’re killing off a controversial deal Trump made with the IRS.
Important Point: With all Democrats opposing Blanche, every single Republican senator must vote "yes" for his nomination to move forward. If even one Republican says no, he’s stuck.
What’s the Controversial IRS Settlement?
Back in January 2026, Trump sued the IRS for $10 billion, claiming an IRS contractor leaked his tax returns. By May, they settled the case—but the settlement had two very unusual parts that made even Republican senators uncomfortable:
1. The "Anti-Weaponization Fund"
- $1.776 billion set aside for people who feel the legal system was "weaponized" against them
- Could pay out to January 6 rioters and other Trump allies
- Blanche has said verbally the fund is "dead" and "not moving forward"
- A federal judge has paused it (so no money can go out right now)
- BUT—the DOJ refuses to formally rescind it in writing
2. The Immunity Agreement
- Says the U.S. is "forever barred" from prosecuting Trump, his two oldest sons, the Trump Organization, and "affiliated individuals"
- Covers past actions AND "any matters currently pending or that could be pending" before other government agencies
- Blanche claims it’s narrower than it sounds (only IRS/Treasury)
- The actual text says "other agencies or departments" too
- A judge ruled the settlement was improper and should never have happened
- DOJ says the immunity deal is STILL in effect despite the judge’s ruling
Where Things Stand Right Now
The Standoff (Step by Step)
- Cornyn & Tillis demand: Written modifications to the settlement
- Cornyn specifically wants:
- Formal written rescission of the anti-weaponization fund
- Narrowing of the immunity agreement’s scope
- DOJ response: Sent a "written proposal" Tuesday, says they’re open to more talks
- Cornyn’s reaction (Wednesday): "They know what they need to do but they simply refuse to do it."
- Tillis’s update (Wednesday): "Almost there" on the fund language, but immunity deal still a sticking point
- Deadline: Committee Chair Chuck Grassley set 4 p.m. EDT Wednesday to decide if Thursday’s vote happens
Other Republicans With Concerns
| Senator | Concern |
|---|---|
| Bill Cassidy (LA) | Worried Blanche is still acting as Trump’s personal attorney, not the country’s AG; concerned about "lawfare" against Trump critics |
| Thom Tillis (NC) | Also wanted Blanche to meet with Epstein victims (happened, but victims called it "performative") |
Why This Matters (In Plain English)
Think of it like this: The Attorney General is supposed to be the people’s lawyer, not the President’s personal lawyer. Senators want proof in writing that Blanche will put the country first—not protect Trump and his allies.
The Core Problem
- Verbal promises can be taken back
- Written commitments are legally binding and harder to reverse
- Without written rescission, a future court ruling could revive the fund
- The immunity deal could shield Trump family from future investigations
What We Don’t Know Yet
- Will Thursday’s vote happen, or get delayed?
- Can DOJ and senators reach a last-minute deal?
- If delayed, can they resolve it before August 10 (Senate recess)?
- Will more Republicans oppose Blanche if it reaches the full Senate?
- How will the judge’s ruling (voiding the settlement) actually play out?
Summary
- Todd Blanche’s AG nomination is in jeopardy because two key Republicans want written changes to a controversial Trump-IRS settlement
- The settlement included a $1.776B "anti-weaponization fund" (for Jan 6 rioters/allies) and a broad immunity deal for Trump family
- Blanche says the fund is dead verbally, but DOJ won’t put it in writing
- DOJ insists immunity deal still stands, even though a judge voided the whole settlement
- Thursday’s committee vote is uncertain—Grassley set a Wednesday 4 p.m. deadline
- Every Republican vote is needed since all Democrats oppose Blanche
FAQ
Why do Senators need this in writing if Blanche already said the fund is dead?
Because verbal statements aren’t legally binding. A future court decision or policy change could revive the fund. Written rescission makes it official and much harder to reverse.
What does "anti-weaponization fund" actually mean?
It’s money set aside to pay people who claim the justice system was used unfairly against them for political reasons. Critics say it’s a slush fund for Trump allies and January 6 defendants.
Can a judge really void a settlement agreement?
Yes. Judge Kathleen Williams ruled the settlement was improperly reached while she was still deciding whether to throw out Trump’s lawsuit. She ordered the government not to use any provisions of it.
Why does the immunity deal mention "other agencies or departments"?
The agreement text explicitly bars prosecution not just by IRS/Treasury, but by any government agency for past actions and even future potential matters. Blanche claims this is standard boilerplate, but the language is unusually broad.
What happens if the committee vote is delayed past August 10?
The Senate goes on August recess. The nomination would stall until September, giving more time for opposition to build and more scrutiny on Blanche’s record.
This article is based on reporting from Forbes, Politico, and congressional sources as of July 2026.
