President Trump threatened Thursday to sideline the Senate confirmation process entirely and keep acting Attorney General Todd Blanche in place until two Republican holdouts leave office next year — a raw power play that lays bare who's really protecting a $1.776 billion settlement fund at the Justice Department.
The stakes for ordinary Americans are straightforward: nearly $1.8 billion in federal money was earmarked to compensate people who claimed they were targeted by government weaponization, plus broad audit immunity for Trump, his family, and his businesses. Both parties called it a slush fund. Blanche testified under oath it's "dead." But the DOJ won't put that in writing — and the question is why.
Sens. John Cornyn of Texas and Thom Tillis of North Carolina have refused to advance Blanche's nomination out of the Judiciary Committee until the department formally rescinds the fund and narrows the audit-immunity provisions. A single Republican defection bottles up the nomination in the 12-10 committee, and every Democrat is expected to vote no.
Trump's response: bypass them entirely. "I have no objection to temporarily withdrawing Todd's name, if they do not do the right thing, and putting him back after Cornyn and Tillis are out of office," he posted on Truth Social. Under the Federal Vacancies Act, Blanche can serve up to 630 days as acting AG — roughly two years — without Senate sign-off.
Both senators are on their way out. Cornyn lost a primary to a Trump-endorsed rival; Tillis is retiring after repeated clashes with the president. Trump noted both "political careers have been ended by my action."
Cornyn fired back: "POTUS is mistaken if he believes concerns about the provisions in his tax lawsuit settlement are limited to me and Senator Tillis."
Tillis was blunter, calling Trump's move "about as politically tone deaf a posture as I have seen in this administration" and warning it hands Democrats "gold to mine" before the midterms. "The president's not winning on this issue," Tillis told reporters. "It is killing some of our candidates because they can't explain it."
The fund originated in a May settlement of Trump's lawsuit against the IRS for leaking his tax returns to the New York Times in 2019. The deal created the $1.776 billion "anti-weaponization" payout — which critics noted could benefit January 6 defendants — and shielded Trump's businesses from IRS audits on prior returns. A federal judge overseeing the case reportedly blasted the arrangement, noting DOJ didn't make a good faith effort to defend the government's interests.
Blanche has said publicly the fund isn't moving forward. Cornyn and Tillis say verbal promises aren't enough — the deal could be revived through a breach-of-contract lawsuit unless the department formally amends the settlement documents. Cornyn said his staff handed DOJ "a red line strikeout of what we need, and they just need to make a decision."
So why hasn't DOJ just signed it? Both senators pointed the finger at the White House. "If this were just between me and Todd Blanche, we would have worked this out," Cornyn said. "But apparently he's getting some pushback from higher-ups at the White House. I don't know who, but this doesn't need to be this hard." Tillis agreed: "Todd Blanche is negotiating in good faith, but it's clear that the approval to get this done is above his pay grade, and we just need to get to that pay grade. I don't believe it's the president. I got to get to finance guys."
The New York Post, citing sources familiar with the standoff, reported that Cornyn "has not been acting in good faith" and had canceled three meetings with Blanche — and that DOJ had already provided written proposals. "He just keeps moving the f–king goal posts," one person griped. Breitbart reported a DOJ official said the department "provided a written proposal" to address the concerns.
The Guardian framed the standoff as an "extraordinary escalation of an intra-party fight" over the fund and tax immunity. NBC emphasized the midterm risk, noting Democrats could flip the Senate and block Blanche entirely. The Post highlighted the Vacancies Act workaround. Breitbart focused on Cornyn's demands and the committee mechanics.
What none of the outlets fully unpacked: who are the "finance guys" in the White House blocking a written commitment to kill a slush fund that both parties claim to oppose? Follow the money. Someone with leverage wants to keep that $1.776 billion door cracked open — and they're willing to let the AG nomination burn to do it.
With midterms under 100 days away and Senate control in the balance, Trump is gambling that he can outlast two departing senators. The open question is whether the person blocking the written fix outlasts Trump.








