Overview
- Acting Attorney General Todd Blanche signed a formal order on Sunday that rescinds the May 18 directive creating the roughly $1.8 billion fund and states the fund “shall have no force or effect.”
- Senators John Cornyn and Thom Tillis responded that they will support advancing Blanche’s nomination out of the Senate Judiciary Committee, removing the primary GOP blockade to a committee vote.
- Blanche’s order also narrowed the IRS audit-protection language so it applies only retroactively to claims already open at the time of the settlement and does not bar future IRS examinations.
- Legal challenges continue because judges and plaintiffs’ lawyers have pressed for sworn declarations and argue the attorney general’s rescission could be reversed by a future leader or fail to satisfy court orders.
- President Trump has defended the original fund and signaled he may seek to revive similar protections through legislation or future action, a development that could keep the dispute alive even if Blanche is advanced.