WASHINGTON — Sen. John Cornyn, R-Texas, reached an agreement with the Department of Justice late Sunday to formally quash the agency’s fund for victims of alleged lawfare, unlocking the path to confirmation for attorney general nominee Todd Blanche.
Cornyn had held up Blanche’s nomination for days in an effort to secure written modifications to a controversial settlement between the DOJ and President Donald Trump that created the $1.8 billion fund, resolving a lawsuit Trump filed over the leak of his tax returns. The deal also extended immunity from tax audits to Trump, his family and his business associates.
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The senator confirmed Monday that the deal addressed his concerns with those provisions, and he will vote to advance Blanche’s nomination out of the Senate Judiciary Committee on Tuesday.
Texas’ senior senator had negotiated with the DOJ last week to secure written assurances that the fund was dead, as Blanche had previously declared in verbal testimony, and that the audit deal was limited in scope. Amid the talks, Trump expressed his frustration with Cornyn, speculating that his endorsement of Attorney General Ken Paxton in the May primary runoff, and Cornyn’s loss, were motivating the standoff.
Trump defended the fund and promoted its revival via legislation, demonstrating the rationale behind Cornyn’s desire to see it voided in writing and seemingly hardening the impasse.
But Cornyn insisted that he was withholding his vote to advance Blanche’s nomination through the Senate Judiciary Committee over sincere concerns about the settlement, and that his opinion was shared more broadly among fellow GOP senators. Another Republican on the panel, retiring North Carolina Sen. Thom Tillis, also vowed to prevent Blanche’s nomination from advancing over similar concerns. Their joint stand forced the Judiciary Committee to delay a planned vote to advance Blanche’s nomination last week.
Blanche, the acting attorney general and Trump’s former personal lawyer, posted a written order late Sunday night rescinding the “anti-weaponization fund” and clarifying the parameters of the audit shield. A Cornyn spokesperson confirmed that the two sides had a deal.
“Sen. Cornyn has reached an agreement with the Department of Justice, which will be issuing a formal order permanently terminating the anti-weaponization fund and making clear in a binding written document that the scope of the audit settlement is limited to only the plaintiffs, including the President, and the IRS,” Cornyn spokesperson Natalie Yezbick said.
The Senate Judiciary Committee had previously rescheduled the Blanche vote for Tuesday morning. With the Cornyn deal now in place, Blanche’s nomination — which cannot afford any Republican defections — appears poised to advance.
In a joint statement, Cornyn and Tillis said the deal met their demands.
“We are pleased that the Department of Justice has issued a formal order terminating the anti-weaponization fund,” the pair wrote Monday. “Additionally, the Department has acknowledged in a binding written order that the audit settlement is limited to the plaintiffs and the scope does not extend beyond the defendants in the lawsuit, the IRS and the Treasury, addressing concerns that multiple of our Republican colleagues share.
“We want to express our gratitude to Mr. Blanche and his staff for working with us on this, and we look forward to voting to advance his nomination out of the Senate Judiciary Committee soon,” they continued.
Blanche’s nomination first appeared at risk in his hearing in front of the Judiciary Committee, when Cornyn pressed him on the gap between his testimony avowing the fund was dead, and the language of the settlement, which states that it may only be modified by written agreement of the parties to the lawsuit. As a vote on Blanche’s nomination approached, Cornyn made clear his vote was contingent on the DOJ putting what Blanche had testified to in writing.
But during negotiations last week, Trump’s fondness for the anti-weaponization fund became clear, threatening to derail Blanche’s nomination.
The president took the unusual step of suing his own government in January over the leak of his 2019 and 2020 tax returns. The Justice Department, representing the Internal Revenue Service, settled the case in May by establishing a nearly $1.8 billion fund for alleged victims of DOJ weaponization, a group that could include rioters who attacked police officers at the U.S. Capitol on Jan. 6, 2021. And in an addendum to the lawsuit, Blanche signed an order giving Trump and his family immunity from having their tax returns audited.
Blanche eventually backed off the fund in the wake of bipartisan outcry. But Cornyn, a lawyer and former judge, wanted it killed in writing so that a plaintiff, such as Trump, could not revive the fund by filing a breach of contract lawsuit. And he sought written assurance that the audit shield would apply only to named parties to the lawsuit and would not protect them from IRS audits of future tax returns nor from audits by other agencies — all of which Blanche had testified to.
In announcing the new DOJ order Sunday, Blanche said it came as the result of “good faith discussions” with senators over several weeks. It states that the audit immunity deal applies “only retroactively” and that the acting attorney general stood by his testimony, “including answers to questions asked by Senator Cornyn related to the scope and applicability” of the audit shield.
The episode demonstrated the extent of Cornyn’s leverage and his willingness to use it — even when it puts him at odds with Trump — in his final months in office. Trump lashed out at Cornyn and Tillis numerous times, including in a Saturday morning social media post in which he lamented that the pair were “upset because I wouldn’t Endorse them” and threatened that the fund would “immediately be back on the table” via an “Anti-Weaponization Bill” if Blanche were not approved.
He also said he would keep Blanche in his acting capacity until Cornyn and Tillis leave office if they would not vote to approve his nominee — only for the DOJ to eventually meet the senators’ demands with Sunday’s deal.
Any legislative effort to revive the fund would likely be dead in the Senate, where it is opposed by a number of Republicans and reviled by Democrats.