Acting Attorney General Todd Blanche told lawmakers Tuesday that the Justice Department is scrapping its plans for a $1.8 billion “anti-weaponization fund” after a wave of bipartisan backlash on Capitol Hill. His comments mark an abrupt reversal for the Justice Department amid criticism that the money would amount to a slush fund aimed at funneling taxpayer dollars to supporters of President Donald Trump. “We are not moving forward with the fund, period,” Blanche told Rep. Grace Meng, D-N.Y., during a House Appropriations subcommittee oversight hearing of the Justice Department. Not moving forward ever? Meng asked. “Correct,” Blanche said, adding the fund had not been set up yet. The idea for the fund was outlined as part of a settlement in the unprecedented $10 billion lawsuit that Trump brought against the IRS earlier this year, a scenario in which Trump sued the same federal government he oversees. Although the fund appears dead, Blanche told lawmakers a second order tied to the settlement agreement would stay in place. That order, which was signed by Blanche, outlined a sweeping settlement pledge in which the IRS is “forever barred” from “examinations” against Trump, certain members of his family, the Trump Organization or “related or affiliated individuals.” Rep. Rosa DeLauro of Connecticut, the top Democrat on the full House Appropriations Committee, appeared exasperated at Blanche’s testimony that he would not rescind the second order, slamming the document as a form of tax immunity to Trump and his family members. Blanche objected to the characterization, saying it was not a “forward-looking document” and would not give immunity in the future to the president, his family or his organization. The “anti-weaponization fund” had rankled Republican members of Congress and drawn outrage from Democrats who said it amounted to open corruption, with the goal of channeling taxpayer dollars to administration allies. The status of the fund has played a key role in the current debate over a reconciliation bill. Criticism against the fund only intensified after Blanche last month declined to guarantee that the money would not go toward rioters who assaulted police during the Jan. 6, 2021, attack on the Capitol. The fund also faces legal challenges. In one, Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia temporarily blocked the Trump administration from creating or operating the fund. The Justice Department, days after the ruling, said it “disagrees strongly” with the decision but would “abide by the Court’s ruling.” The court’s ruling did not close out the case, prompting speculation over whether the administration would continue to pursue the fund. “Notwithstanding what we do in those litigations and defending our rights and making sure our rights are protected, we’re not moving forward with the fund,” Blanche told the lawmakers Tuesday.
