Key facts
- Todd Blanche formally withdrew a $1.8 billion "anti-weaponization fund" intended for Trump allies.
- The withdrawal of the fund is expected to clear Todd Blanche's path to confirmation as attorney general.
- A tax audit immunity plan for Donald Trump, his sons, and the Trump Organization remains in place.
- The audit immunity plan has been modified to apply retroactively to claims open at the time of the lawsuit's settlement.
- Legal experts question the lawfulness of the audit immunity deal, citing potential violations of IRS statutes.
Todd Blanche's nomination for attorney general is poised for confirmation after he formally withdrew a controversial $1.8 billion "anti-weaponization fund" intended for President Donald Trump's political allies. This move appeased Republican Senators John Cornyn and Thom Tillis, who had opposed the fund and a related tax audit immunity deal. Despite the fund's termination, a broad audit immunity plan for Trump, his sons Eric and Donald Jr., and the Trump Organization remains in place. This agreement, part of a settlement resolving Trump's $10 billion lawsuit against the IRS over leaked tax returns, has been modified to apply retroactively to claims open at the time of the settlement, potentially wiping away millions in back taxes. Legal experts and lawmakers have raised concerns about the lawfulness of the audit immunity, with some calling it an "illegal settlement" that could violate IRS statutes barring executive branch interference in taxpayer audits. The statute, tightened after the Watergate scandal, prohibits the president or employees from starting or stopping audits. While an attorney general can direct audits, the legal authority for Blanche to do so in this specific context remains a question. U.S. District Judge Kathleen Williams previously ruled that Trump's lawsuit against the IRS was filed for an "improper purpose" but did not void the audit shielding deal. Trump has appealed this ruling. The settlement's implications for the IRS's integrity and taxpayer fairness have been widely criticized. Some Republican senators, including Bill Cassidy, Susan Collins, and John Curtis, are still reviewing the agreement before committing to a vote, while Senate Majority Leader John Thune expressed hope for confirmation.