Acting Attorney General Todd Blanche formally killed a $1.8 billion fund meant to compensate Americans targeted by their own government Sunday night, buying his path to Senate confirmation by handing a win to two Republican senators with personal scores to settle with Donald Trump.
The fund — born from Trump's lawsuit against the IRS over the agency's history of being used as a political weapon — never spent a dime. No members were appointed to administer it. No money was transferred. No claims were processed. No payments were made. It existed on paper. Now it doesn't.
But that didn't stop Senators John Cornyn and Thom Tillis from holding Blanche's nomination hostage over it. They got their written guarantee Sunday, clearing the way for a Tuesday Judiciary Committee vote.
The stakes for ordinary Americans are straightforward: the federal government has a documented record of weaponizing its enforcement powers against political enemies. The IRS targeted conservatives. The DOJ targeted Trump associates. A fund to make whole the people caught in that machinery was, at minimum, an acknowledgment that something went wrong. Now it's gone — killed not by Democrats but by Republicans.
The Fund That Never Was
Blanche's order states that "although the Acting Attorney General has repeatedly advised Congress through testimony, including under oath, as well as in written responses, that the Fund is not moving forward, and the Department has repeatedly represented to district courts that the Fund is not moving forward, today's Order officially rescinds the May 18, 2026 Order."
The DOJ's own statement confirms the fund never operated: "No Members were appointed; no funds were transferred; no process for receiving claims was established; no claims were paid."
NPR, AP, The Guardian, and NBC all framed the fund as a vehicle to "compensate Trump's political allies." That's editorializing dressed as reporting. The fund was designed to compensate people who believed they were unfairly prosecuted — a category that extends well beyond political allies, unless the press is arguing only Trump cronies get railroaded by the justice system.
The outlets leaned hard on the possibility that January 6 defendants could have been eligible. Trump himself pushed that line Sunday, saying people charged in connection with January 6 had "their lives destroyed" and calling the fund "a reimbursement for the pain that they suffered." "A lot of people like it," he added. The Guardian was the only outlet to include that quote.
The Senators and Their Motives
Cornyn and Tillis aren't neutral actors. Cornyn lost his seat after Trump endorsed Ken Paxton against him in the primary. Tillis is retiring. Both have feuded with Trump. NBC News noted plainly that the two senators "have feuded with Trump in the past."
NPR and AP reported that the Justice Department was willing to deal but "the White House wouldn't budge" — meaning Trump himself was the roadblock to killing his own fund. Trump threatened Saturday to "push hard" to revive it, according to NBC.
Tillis, before the deal was struck, accused Trump of planning to "resurrect the payout pot for punks either by inappropriately establishing another bogus fund or pushing Congress to vote for a bill that the majority of Republicans in the Senate would be against."
Cornyn's spokesperson Natalie Yezbick told Politico the agreement would "permanently terminat[e] the anti-weaponization fund" and clarify that the IRS settlement's tax protections apply only to named plaintiffs, including the president — not future filings.
What Else Got Killed
The IRS settlement didn't just create the fund. It also provided tax audit protections for Trump and his family. Blanche's order narrowed those to apply "only retroactively" to claims open at the time of settlement — not future tax filings. That's a real concession that got buried beneath the fund controversy.
The Open Question
The establishment press wants this story to be about Trump rewarding cronies. The actual story is harder to swallow: the federal government weaponizes its powers, everyone knows it, and when someone tries to build a mechanism for accountability, the permanent class — including Republicans who've lost their primaries — kills it. The fund is dead. The weaponization isn't.








