Topline
The Trump administration refuses to modify the IRS’ controversial settlement with President Donald Trump and formally rescind its “anti-weaponization” fund, Sen. John Cornyn, R-Texas, told reporters Wednesday, even though the Justice Department holding firm on the settlement could derail Todd Blanche’s confirmation as attorney general.
Acting Attorney General Todd Blanche appears at his confirmation hearing in front of the Senate Judiciary Committee on July 15 in Washington, DC.
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Key Facts
The Senate Judiciary Committee is scheduled to vote Thursday on whether Blanche’s nomination as attorney general should move forward to a full Senate vote, and with Democrats unilaterally opposing Blanche, every single Republican senator needs to vote for him for his nomination to move forward.
Cornyn and Sen. Thom Tillis, R-N.C., have suggested they could oppose Blanche unless the DOJ makes “written modifications” to the IRS settlement, which included a $1.776 billion “anti-weaponization fund” for people who feel the judicial system was “weaponized” against them and an agreement that appears to give Trump, his eldest sons and other parties widespread legal immunity.
Cornyn wants the DOJ to formally rescind the anti-weaponization fund in writing—after Blanche has already claimed in Congressional testimony that the fund is “dead”—and restrict the immunity agreement’s scope, Politico reports, but told reporters Wednesday about the DOJ, “They know what they need to do but they simply refuse to do it.”
The Texas senator cancelled a planned meeting with Blanche Wednesday morning and said Sen. Chuck Grassley, R-Iowa, who chairs the Senate Judiciary Committee, had set a 4 p.m. EDT deadline to determine whether the vote on Blanche will take place Thursday, or if it will get postponed because he doesn’t have the necessary votes.
Tillis has also suggested he still could oppose Blanche over the lack of changes to the IRS deal, telling Politico on Tuesday he was “pretty much following Cornyn’s cue” on demanding modifications to the agreement.
Crucial Quote
“I haven’t seen a single piece of writing that is responsive to what I’ve requested,” Cornyn told reporters Wednesday. “Maybe they think I’m just going to give up or, you know, go along, but they’re mistaken.”
What to Watch for
It remains unclear if the vote on Blanche’s confirmation will take place as scheduled Thursday or if it will get delayed, and whether the DOJ could reach a last-minute agreement that will get Cornyn and Tillis on board. If the vote does get delayed, it remains to be seen whether lawmakers will be able to get it over the finish line and sent to the full Senate before the body begins its August recess on Aug. 10.
Is The Anti-Weaponization Fund Still In Effect?
No—but without the written assurances that Cornyn and Tillis are asking for, it could be revived. Blanche has told lawmakers the fund is “not moving forward,” and a federal judge has paused it, so the Trump administration couldn’t make payments through it right now even if they wanted to. The judge overseeing Trump’s lawsuit against the IRS has also issued a ruling saying the settlement agreement should have never been reached in the first place and essentially nullifying it, but Blanche has suggested the DOJ doesn’t interpret that ruling as formally rescinding the agreement. While Blanche has given lawmakers verbal assurances that the fund is dead, he and other DOJ officials have refused to put that in writing or formally rescind the agreement, which has sparked fears that they could try to revive it if the pause against it in court gets lifted. Reports suggest the Trump administration is also considering other ways to try to get payouts to Trump allies, including Jan. 6 rioters, whether that’s through establishing a new fund or establishing a process to speedily pay out legal settlements.
Is Trump’s Immunity Deal Still In Effect?
According to the DOJ, yes. Unlike the anti-weaponization fund, which Blanche backtracked on and said was dead after even Republican senators opposed it, the DOJ has held firm to keeping the immunity agreement in place. In her ruling saying the settlement agreement was improperly reached, Judge Kathleen M. Williams ordered the government not to refer to the “settlement agreement” or use its provisions in any official proceedings. While that should effectively void the immunity deal and prevent it from being used, Blanche has suggested he doesn’t interpret Williams’ ruling that way, answering “yes” when asked by lawmakers whether that provision of the settlement was still in effect. When asked by Sen. Adam Schiff, D-Calif., whether the DOJ and Trump would “abide by” Williams’ order, he said only, “The Department is reviewing the Court’s Order and weighing whether any response by the United States is required.” The agreement says the U.S. is “forever barred” from prosecuting or bringing civil claims against Trump, his two oldest sons, the Trump Organization and other “affiliated individuals” for actions that already happened by the date of the settlement, both tied to the IRS suit and for “any matters currently pending or that could be pending” before other government agencies. Blanche has claimed the deal is more narrow than that language suggests, alleging the deal only prevents Trump and his sons from facing action from the IRS and Treasury Department, despite the agreement specifically mentioning “other agencies or departments.” He has also claimed it doesn’t preclude the government from bringing prosecutions—despite the language of the agreement saying the government is barred from “prosecuting or pursuing claims.”
Key Background
Trump sued the IRS for $10 billion in January, alleging the agency had failed to keep his tax returns private after a contractor leaked details of the president’s taxes to the press. The case was settled in May as Williams was deliberating on whether it should be thrown out, and quickly became a matter of widespread controversy, as even Republican senators questioned the administration giving payouts to people convicted for their participation in the Jan. 6 riot. Blanche’s refusal to formally rescind the deal comes as Trump has continued defending it, calling it a “great idea” even after his DOJ had said it abandoned it. Blanche was elevated to acting attorney general and nominated to take the role permanently after Trump fired previous AG Pam Bondi. In addition to the controversy over the IRS settlement, Blanche has also faced criticism over his former role as Trump’s personal attorney and for his handling of the Epstein files. Tillis had also suggested he would oppose Blanche’s nomination unless he met with victims of Jeffrey Epstein—which the AG nominee later did, though victims say the meeting was woefully insufficient at addressing their concerns.
Further Reading
Todd Blanche Says ‘Sorry’ To Epstein Victims—But Defends DOJ—In Testy Confirmation Hearing (Forbes)
Blanche Claims Trump’s IRS Immunity Deal Still In Effect—After Court Essentially Voids It (Forbes)