Trump Attorney Abandons Controversial $1.8 Billion Legal Fund Proposal

Acting U.S. Attorney General Todd Blanche on Sunday formally withdrew a proposed $1.8 billion fund that had become a central obstacle to his permanent confirmation. Officials said the move was made in writing, a step demanded by key Senate Republicans who had withheld support while the proposal remained active.

The withdrawal follows weeks of stalemate in the U.S. Senate. Republican holdouts John Cornyn and Thom Tillis had insisted they would not back Blanche’s nomination unless the fund was officially terminated through a signed action, according to the source material.

Senate holdouts demanded written termination

The initiative had been designed to resolve a lawsuit tied to the leak of President Donald Trump’s tax returns. From the start, the proposal drew scrutiny from both parties, turning a funding mechanism into a confirmation flashpoint.

Critics argued the structure of the fund raised risks beyond the tax-return dispute. They said it could potentially be used to compensate individuals prosecuted for their roles in the January 6, 2021, U.S. Capitol riot, an allegation that intensified political resistance and widened the controversy around the nomination.

Judge’s block and ethics concerns shaped the reversal

A federal judge had previously blocked the fund, citing possible ethical violations. The judge’s concern, as described in the source, focused on whether public resources could be used to support what were characterized as private legal settlements.

Attorney General Todd Blanche

In response, Blanche issued a signed order stating the fund does not exist. The order also clarified language related to IRS audit immunity, steps that officials said were aimed at addressing the core objections raised within the Senate Judiciary Committee.

Confirmation process set to move again

With the written withdrawal now filed, the procedural barrier that drove the Senate deadlock has been removed. The change is expected to clear the way for a confirmation vote during the Senate Judiciary Committee’s scheduled meeting on Tuesday, according to the source.

The resolution also ends a volatile stretch in which President Donald Trump had threatened to withdraw the nomination entirely if the fund was not approved. While the withdrawal is framed as a procedural step, it directly responds to the demands that had delayed the nomination and put the confirmation timeline in doubt.

Remaining uncertainty centers on how quickly senators consolidate support now that the fund has been formally terminated, and whether any additional concerns emerge during the committee’s Tuesday session.