Key facts
- Acting Attorney General Todd Blanche reached a deal with Senators John Cornyn and Thom Tillis.
- The deal involves withdrawing an order for an $1.8bn "weaponization fund" and clarifying tax immunity for Donald Trump.
- Critics argue the assurances are not legally binding and can be easily reversed by Trump.
- The original settlement agreement creating the fund remains unmodified.
- Democrats and legal experts believe congressional action is needed to permanently halt the fund and related immunity.
A compromise brokered by Senators John Cornyn and Thom Tillis with Acting Attorney General Todd Blanche has drawn sharp criticism from Democrats and legal experts, who argue it does little to permanently halt a controversial "weaponization fund" and broad tax immunity granted to Donald Trump and his associates. Blanche released documents Sunday evening rescinding an order that would have created an $1.8 billion fund and clarifying that tax immunity was retroactive only to Trump, his sons, and businesses. However, critics contend these assurances are not legally binding and can be easily reversed by Trump, who has publicly praised the fund and expressed ignorance of the agreement.
Legal experts like Brandon DeBot of the Tax Law Center at NYU stated the assurances are "not worth the paper they're written on" and do not prevent Trump from reviving the fund or seeking similar unauthorized immunity from tax audits. Jamie Raskin, ranking Democrat on the House Judiciary Committee, called the announcement "hollow words" that do not prevent the Justice Department from creating the fund under a different name. Similarly, Adam Schiff, a California Democrat, noted the deal does not prevent future payouts to January 6 defendants or the use of the DOJ's Judgment Fund for similar purposes.
The original settlement agreement, stemming from a $10 billion lawsuit filed by Trump and his businesses over the unauthorized release of his tax returns, remains unmodified. This means Trump or his sons could theoretically sue to enforce it. Virginia Canter, chief counsel at Democracy Defenders Action, described the agreement as "completely hollow" because it cannot be modified without all parties' consent, allowing Blanche to reverse course. Skye Perryman, president of Democracy Forward, suggested the Justice Department is trying to appease the Senate while preserving favor with Trump by not making court-backed commitments. Even some Trump allies, like Mike Howell of the Oversight Project, believe the documents can be undone, asserting the "weaponization fund is great."