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Trump tax immunity deal stalls AG nomination

Created at 30 Jul · 8:46 PM1 source↑ Market-relevant
IN SHORT

President Trump's refusal to formally end a controversial tax immunity agreement and a related slush fund has stalled the permanent confirmation of Todd Blanche as US Attorney General. Two Republican senators are blocking the nomination over concerns about the tax deal.

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Key Numbers

$10 billiondamages sought in tax records lawsuit
$1.8 billionslush fund amount
$100 millionpotential cost of one IRS audit

Who's Involved

Donald Trump
US President whose tax immunity deal is blocking AG nomination
Todd Blanche
Acting Attorney General and nominee for permanent US Attorney General
John Cornyn
Republican Senator from Texas blocking the nomination
Thom Tillis
Republican Senator from North Carolina blocking the nomination

↳ Why This Matters

The standoff underscores how President Trump's personal financial interests and political rivalries can influence critical government appointments, potentially impacting the independence and functioning of the Department of Justice.

Key facts

  • Donald Trump's tax immunity agreement and a related slush fund have become a point of contention in the nomination of Todd Blanche for US Attorney General.
  • The agreement, part of a deal to end a $10 billion lawsuit over unauthorized disclosure of Trump's tax records, grants immunity from audits for past matters.
  • Republican Senators John Cornyn and Thom Tillis are withholding their support for Blanche's permanent confirmation, seeking written limits on the tax immunity deal.
  • Trump publicly criticized Cornyn and Tillis, suggesting their political careers were over due to his actions and that he might temporarily withdraw Blanche's name.
  • Blanche, currently serving as acting attorney general, can continue in the role indefinitely under federal law, regardless of confirmation.
  • President Donald Trump's refusal to formally conclude a controversial tax immunity agreement has led to a standoff over the permanent confirmation of Todd Blanche as US Attorney General. The agreement, which provides broad immunity from audits for past tax matters and includes a $1.8 billion slush fund, has drawn criticism from Republican Senators John Cornyn and Thom Tillis.

    Cornyn and Tillis have indicated they would support Blanche, a former personal lawyer for Trump, if the President would agree to put specific limits on the tax immunity deal in writing. These limits reportedly include clarifying that the exemption applies exclusively to the IRS and only concerns past tax returns. Trump, however, has publicly attacked the two senators, accusing them of blocking a "Great Nominee" and suggesting their political careers are over due to his actions.

    The tax immunity deal was part of a settlement to end a $10 billion lawsuit concerning the unauthorized disclosure of Trump's tax records. A federal judge had previously criticized the government's handling of the case, suggesting it appeared to be an effort to secure a favorable outcome for the President. Despite Blanche's public stance that the slush fund portion of the agreement is not moving forward, Trump's reluctance to formalize its end leaves open the possibility of future attempts to enforce it.

    Under federal law, Blanche can continue to serve as acting attorney general indefinitely, meaning there is no immediate penalty for the stalled nomination. The episode highlights the significant influence a few senators can wield and Trump's unwillingness to concede ground to political rivals, even at the cost of a political achievement like securing his nominee for Attorney General.

    Frequently asked questions

    It is an agreement between Donald Trump and the government to settle a lawsuit over the disclosure of his tax records. It grants Trump, his family, and related entities immunity from audits for any matter until the agreement was reached.

    They are seeking written clarification and limits on the tax immunity deal, specifically regarding its application to the IRS and past tax returns, before they will vote to confirm Blanche as US Attorney General.

    Yes, under federal law, Blanche can continue to serve as the acting attorney general indefinitely as he has already been confirmed by the Senate as deputy attorney general.

    The slush fund is part of the settlement agreement, and while Blanche has stated it is not moving forward, Trump's refusal to formalize its end leaves open the possibility of future attempts to enforce it.

    What Happens Next

    01The two Republican senators and Todd Blanche are reportedly close to reaching a resolution.
    02A confirmation vote for Blanche may be reconsidered if an agreement is reached.

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    Cadence

    How It Developed

    A controversial agreement granting Donald Trump broad tax immunity and creating a slush fund was in place.
    The slush fund portion of the agreement was reportedly dead, according to acting Attorney General Todd Blanche.
    Two Republican senators, John Cornyn and Thom Tillis, requested President Trump put limits on the tax immunity deal in writing.
    Trump posted on Truth Social that Cornyn and Tillis were refusing to vote for Blanche, whose nomination he refused to endorse.
    Cornyn stated that concerns about the tax lawsuit settlement provisions were not limited to him and Tillis.
    Negotiations continued between the senators and Blanche, reportedly nearing a resolution.

    Sources

    T1
    Trump’s tax immunity scheme hoists president by his own petard on Blanche AG nominationThe Guardian

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