Todd Blanche formally scraps Trump's contentious fund proposal

Acting US Attorney General Todd Blanche has formally abandoned President Donald Trump's proposal for a fund that could have been used to compensate individuals charged in connection with the 6 January 2021 attack on the US Capitol. The move removes a major obstacle to Blanche's confirmation as the country's top law enforcement officer.

The controversial $1.8bn "anti-weaponisation" fund was unveiled earlier this year as part of a lawsuit settlement between Trump and the Internal Revenue Service (IRS) over the leak of his tax returns. It was designed to allow Trump allies to seek compensation for what they claimed were politically motivated prosecutions by previous administrations.

Two Republican senators, John Cornyn and Thom Tillis, had held up the confirmation process, demanding written assurances that the fund was truly dead. They also raised concerns about a provision that would have shielded Trump, his family, and their businesses from IRS audits of past tax returns. In a post on X late Sunday, Blanche said he had addressed all concerns and attached a signed order stating: "This Order establishes, beyond any doubt, that there is no Fund." He also said he had clarified language regarding IRS immunity.

The fund plan drew sharp criticism from Democrats and some Republicans, who warned it could channel money to people convicted of crimes related to the Capitol riot, including those who assaulted police officers. After the backlash, Blanche had already scrapped the plan, and a federal judge blocked it over ethical concerns. However, the two senators wanted more than verbal reassurances.

Cornyn's spokesperson said an agreement had been reached with the Department of Justice, while Tillis, who earlier expressed opposition to a "payout pot for punks," had not commented. Trump himself sent mixed signals: on Friday he called the fund "dead," but later threatened to revive it if senators did not back Blanche. He also suggested he might withdraw Blanche's nomination amid the impasse. The Senate Judiciary Committee is scheduled to meet Tuesday and could vote on Blanche's nomination.