Acting U.S. Attorney General Todd Blanche has formally revoked the controversial $1.8 billion compensation fund proposed to benefit political allies of President Donald Trump, marking a major development ahead of his Senate confirmation vote for the nation’s top law enforcement position.
The decision follows weeks of negotiations with key Republican senators who had delayed Blanche’s nomination, demanding written confirmation that the Justice Department would permanently abandon the program.
According to an official Justice Department order signed late Sunday, the previously announced fund has now been officially canceled, eliminating any possibility of future payments under the initiative.
Senate Pressure Leads to Policy Reversal
The move comes after Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina expressed concerns about the proposed fund and withheld support for Blanche’s confirmation as Attorney General.
While Blanche had previously assured lawmakers during congressional testimony that the fund would not proceed, both senators insisted on a formal written order before agreeing to move forward with his nomination.
A spokesperson for Senator Cornyn confirmed that the agreement had been reached ahead of Tuesday’s scheduled Senate Judiciary Committee vote.
Justice Department Declares Fund Permanently Terminated
In its accompanying statement, the Justice Department emphasized that the compensation program never became operational.
Officials stated that no governing board was established, no money was distributed, no claims process was created, and no payments were made. The newly signed order officially rescinds the earlier authorization issued in May 2026 and confirms that the fund no longer exists.
The department described the action as removing any remaining uncertainty regarding the future of the proposal.
Settlement Terms Also Revised
The order also narrows another disputed provision related to the settlement of President Trump’s lawsuit against the Internal Revenue Service (IRS).
Under the revised language, immunity from certain tax audits applies only to matters that were already active when the settlement was finalized. The clarification confirms that future tax filings by the president remain subject to standard IRS examination procedures.
Political Dispute Over Confirmation
Blanche’s confirmation process has faced resistance despite broad Republican support for the administration.
Senators Cornyn and Tillis delayed committee action after raising objections to the compensation fund, arguing that the Justice Department needed to provide legally binding assurances before they could support the nomination.
Both lawmakers indicated that negotiations with Justice Department officials were productive but suggested that the White House had initially resisted changes to the proposal.
Trump’s Position Remains Unchanged
Despite the Justice Department’s decision, President Donald Trump has continued to publicly defend the concept of compensating individuals he believes were unfairly prosecuted, including some connected to the January 6, 2021, Capitol riot.
Trump has argued that many defendants suffered significant personal and financial harm and previously suggested the compensation initiative should remain under consideration. He had also warned that he could reconsider Blanche’s nomination if Senate Republicans continued delaying the confirmation process.
Ongoing Legal Challenges
The controversy surrounding the proposed fund remains linked to broader legal disputes involving Trump’s settlement with the IRS.
The administration has appealed a recent federal court ruling that criticized the settlement and questioned aspects of Blanche’s involvement due to his previous role as Trump’s personal defense attorney.
Blanche has rejected those criticisms, maintaining that the Justice Department acted appropriately throughout the process. Department lawyers have also argued that additional court demands regarding sworn declarations about the fund were unnecessary because the proposal had already been abandoned.
With the compensation fund now officially rescinded, attention shifts to Blanche’s upcoming confirmation vote, where lawmakers will determine whether he becomes the permanent Attorney General of the United States.
