Acting Attorney General Todd Blanche formally eliminated a controversial $1.8 billion fund on Sunday night, ending a weeks-long confrontation with Republican senators who threatened to block his permanent confirmation over the program that could have benefited participants in the January 6 Capitol riot.

Deal Reached Before Critical Vote

Blanche announced the agreement just two days before the Senate Judiciary Committee votes on his nomination to become attorney general permanently. He issued a signed order declaring that the Anti-Weaponization Fund, established on May 18, 2026, is rescinded and has no force or effect. The document explicitly states that no fund exists, addressing concerns raised by key Republican senators during weeks of negotiations with Justice Department officials.

The fund originated from a settlement in President Donald Trump’s lawsuit against the Internal Revenue Service. That deal also protected the Trump family from tax audits, drawing immediate criticism from members of Trump’s own party. Senator John Cornyn of Texas and Senator Thom Tillis of North Carolina made clear their support for Blanche depended entirely on scrapping the program, using their positions to force the administration’s hand.

Settlement Terms Modified

Blanche’s order narrowed another provision of the original IRS settlement that provided sweeping immunity for Trump and his family members from tax examinations. The revised agreement clarifies that audit protection applies only retroactively to claims pending at the settlement date. Future tax filings from the president remain subject to standard IRS review procedures, addressing transparency concerns raised during congressional testimony.

The acting attorney general had previously told Congress the fund was dead, but Trump threatened on Saturday to push hard for its revival. Senator John Kennedy of Louisiana, who serves on the Judiciary Committee, stated on NBC’s Meet the Press on Sunday that any legislation codifying the fund would explicitly exclude January 6 rioters from receiving payments.

Political Calculations at Play

Both Cornyn and Tillis have clashed with Trump previously. Tillis announced he will not seek reelection, while Cornyn lost his seat to Trump-endorsed primary challenger Ken Paxton. Despite not serving on the Judiciary Committee themselves, the senators wielded influence by threatening to oppose Blanche’s nomination when it reached the full Senate floor. Cornyn’s spokesperson confirmed an agreement had been reached, with the Justice Department issuing formal documentation permanently terminating the fund and limiting the audit settlement scope to only the named plaintiffs.