Politics July 29, 2026 01:14 PM

Senator Withholds Backing, Putting AG Nomination at Risk Over $1.8 Billion Settlement Provision

Republican John Cornyn demands written assurances on a proposed $1.8 billion fund and audit protections before he will support Todd Blanche’s confirmation

By Marcus Reed
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Senator John Cornyn said he will not vote to support Todd Blanche’s nomination as U.S. attorney general until the Justice Department provides written documentation addressing provisions tied to a settlement between President Trump and the administration. Cornyn cited concerns about a proposed $1.8 billion "anti-weaponization fund" for allies and an agreement that could shield Trump and associates from tax audits. His position prompted the cancellation of a scheduled pre-vote meeting and jeopardizes Blanche’s path to confirmation, since the nominee needs unanimous Republican support on the Senate Judiciary Committee to advance.

Senator Withholds Backing, Putting AG Nomination at Risk Over $1.8 Billion Settlement Provision
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Key Points

  • Senator John Cornyn has withheld support for Todd Blanche’s attorney general nomination, citing unresolved questions tied to a proposed $1.8 billion fund and audit protections for President Trump and associates - sectors impacted: government oversight, legal, and tax policy.
  • Blanche submitted a written proposal intended to address the fund and clarify a related tax-audit immunity agreement, but Cornyn says he has not received responsive documentation.
  • Blanche requires every Republican vote on the Senate Judiciary Committee to advance; opposition from Cornyn and North Carolina Republican Thom Tillis could block the nomination - sectors impacted: federal justice leadership and legislative process.

WASHINGTON, July 29 - Todd Blanche’s pathway to formal confirmation as U.S. attorney general ran into a potential obstacle on Wednesday after Republican Senator John Cornyn said he could not yet back the nominee, citing outstanding questions tied to a settlement involving President Donald Trump.

Cornyn’s hesitancy centers on provisions of a deal that includes a proposed $1.8 billion "anti-weaponization fund" reportedly intended for Trump allies, along with an agreement that, according to descriptions from those familiar with the matter, could afford Trump and his associates protections from tax audits that ordinary taxpayers would not receive.

The Texas Republican canceled a planned meeting with Blanche that had been set to take place before a Senate Judiciary Committee vote scheduled for Thursday. Cornyn said he was not prepared to vote in favor of the nomination until the Justice Department supplied written assurances addressing his specific concerns.

Blanche, who previously served as President Trump’s personal defense lawyer before the president’s second term, is serving now as acting attorney general. But to move his nomination out of the Senate Judiciary Committee, he requires the support of every Republican on that panel. Cornyn’s withheld vote could therefore be decisive.

"I’m not prepared to vote yes" on Blanche’s nomination, Cornyn told reporters when explaining his stance. He added that a meeting with Blanche would be unnecessary if the Justice Department provided the documentation that Cornyn said would substantiate Blanche’s sworn testimony during his confirmation hearing.

According to a person familiar with the matter who spoke on condition of anonymity, Blanche submitted a written proposal on Wednesday to Cornyn and other key Republicans that would "put the fund to bed," a reference to the $1.8 billion pot of money. That person also said the proposal would clarify a related agreement Blanche signed that the person described as granting broad immunity from audits to Trump and his associates over past tax returns.

In testimony in May, Blanche told lawmakers he could not commit to preventing funds from going to people who assaulted police officers, including during the January 6, 2021, Capitol riot. He later informed lawmakers that the fund was not moving forward.

Cornyn said he had not received any written material responsive to his requests. "I haven’t seen a single piece of writing that is responsive to what I’ve requested," he said. He noted that Senate Judiciary Committee Chairman Chuck Grassley had set a 4 p.m. (2000 GMT) Wednesday deadline to decide whether to cancel the committee’s planned vote on the nomination.

The tax-immunity agreement and the $1.8 billion weaponization fund both surfaced as elements of a settlement negotiated between President Trump and his administration concerning Trump’s $10 billion lawsuit against the Internal Revenue Service, according to descriptions of the settlement.

On the perceived rationale for the protections, Cornyn said, "I can see why he (Trump) wants it because it provides immunity from audits that no other taxpayer could possibly get."

Cornyn is not the only Republican on the committee to voice concerns. Fellow Republican member Thom Tillis of North Carolina has also expressed reservations about Blanche’s involvement in creating the fund. Blanche needs the votes of both Cornyn and Tillis, as well as every other Republican committee member, to advance his nomination to the full Senate.


Context and next steps

The immediate procedural question is whether the committee will proceed with the scheduled vote or delay until requested documentation is produced. Committee leaders set a firm deadline for the Justice Department to respond, leaving a narrow window to resolve the dispute ahead of the planned vote.

Risks

  • Failure to provide the requested written assurances could lead to delay or derailment of Blanche’s confirmation, prolonging the period with an acting attorney general - sectors impacted: legal sector and federal agencies.
  • Unresolved questions about the settlement’s tax-audit protections could raise concerns about unequal treatment under tax enforcement, creating political and oversight uncertainty - sectors impacted: taxation, regulatory enforcement, and financial markets sensitive to governance issues.

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