Acting US Attorney General Todd Blanche has formally scrapped a controversial proposal for a multibillion-dollar compensation fund, removing a major obstacle to his confirmation as the country’s permanent top law enforcement official.
Blanche announced the withdrawal after facing resistance from some Republican senators who had raised concerns over the proposed fund, which critics feared could have benefited individuals prosecuted over the January 6, 2021, US Capitol riot.
In a post on X, Blanche said he had engaged with members of the Senate and addressed concerns surrounding the proposal.
He attached a written order declaring that the planned fund would not proceed.
“This Order establishes, beyond any doubt, that there is no Fund,” the document stated.
The decision clears the way for Senate consideration of Blanche’s nomination, after two Republican senators withheld support over concerns about the proposal.
The proposed $1.8 billion “anti-weaponisation” fund was linked to a lawsuit filed by President Donald Trump against the Internal Revenue Service (IRS) over the disclosure of his tax returns.
The plan would have provided compensation to individuals who claimed they had been targeted through politically motivated prosecutions by previous administrations.
However, the proposal faced criticism from Democrats and some Republicans, who argued it could potentially result in payments to people convicted in connection with the Capitol attack, including those involved in violence against law enforcement officers.
A federal judge later blocked the fund, raising concerns about whether it complied with ethical standards.
Blanche also addressed a separate concern involving protections from IRS audits. In an unsigned memo attached to his statement, he said the immunity provision would apply only to the named plaintiffs in the lawsuit — Trump, his sons Donald Jr and Eric, and the Trump Organization.
The controversy had complicated Blanche’s confirmation process, with Republican senators John Cornyn and Thom Tillis expressing reservations about the proposal.
A spokesperson for Cornyn said the senator had reached an agreement with the Justice Department regarding the fund, while Tillis had previously criticised the idea as a potential “payout pot” for individuals convicted in connection with the Capitol riot.
The Senate Judiciary Committee is scheduled to meet to consider Blanche’s nomination, with the withdrawal of the fund expected to remove one of the key barriers to his confirmation.
Blanche, who previously served as Trump’s personal lawyer, has been described by supporters as qualified for the role, although his close ties to the president have also drawn scrutiny.
