Blanche AG Bid Faces GOP Block Over IRS Settlement, $1.8B Fund
Acting Attorney General Todd Blanche's path to Senate confirmation is in jeopardy after key Republicans demanded written guarantees altering a tax settlement that shields Trump from audits and blocking a $1.8 billion DOJ compensation fund.
Todd Blanche’s nomination for attorney general faces a critical setback just ahead of a Thursday Senate Judiciary Committee vote. Senator John Cornyn canceled a second meeting meant to resolve disputes over the Department of Justice's settlement of Donald Trump’s lawsuit against the IRS.
At the center of the standoff is the settlement's scope regarding tax enforcement. The agreement resolved a lawsuit Trump filed after an IRS contractor illegally leaked his tax records. Cornyn is demanding written assurances matching Blanche's testimony that the deal does not grant prospective immunity from audits to Trump, his family, or his businesses for prior returns, and applies only to the IRS and Treasury.
Cornyn and Senator Thom Tillis are also demanding a permanent guarantee that a $1.8 billion DOJ fund cannot be revived. Blanche canceled the fund, intended to compensate victims of alleged prosecutorial overreach, following congressional backlash. However, the senators want binding written confirmation the money cannot be resurrected by the department.
The committee consists of 12 Republicans and 10 Democrats, with unified Democratic opposition expected. If either Cornyn or Tillis votes no, Blanche will lack the majority needed to advance to the full Senate. Committee Chairman Chuck Grassley set a 4 p.m. Wednesday deadline to determine if Thursday's vote can proceed.
"Maybe they think I'm just going to give up or, you know, go along," Cornyn told reporters. "But they're mistaken." He added: "So they better get real, and there's not much time left."
A DOJ official stated the department provided a written proposal to Cornyn's staff on Tuesday and looks forward to further discussion. Cornyn rejected that characterization, stating: "I haven't seen a single piece of writing that is responsive to what I've requested."
Asked how he would vote, Cornyn replied: "Well, I'm not prepared to vote 'yes.' Let me put it that way."
Both Cornyn and Tillis are departing the Senate in January, freeing them from reelection pressures as they challenge the administration's legal maneuvering. The impasse leaves the DOJ's top leadership position in limbo amid ongoing disputes over the limits of executive tax enforcement.
