Trump still protected from tax enforcement, but anti-weaponization fund is dead, Blanche says
- The Department of Justice will not operate a planned $1.8 billion compensation fund that was created to settle a lawsuit by President Donald Trump against the Internal Revenue Service, acting Attorney General Todd Blanche testified to a House panel.
- But Trump, his family members and related business entities remain protected from tax audits and enforcement actions in connection with tax returns filed before last month's out-of-court settlement of his lawsuit, Blanche said.
- "We are not moving forward with the fund, period," Blanche told Rep. Grace Meng, D-N.Y., the ranking member of the House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies.
The Department of Justice has permanently abandoned plans for a $1.8 billion anti-weaponization compensation fund created to settle a lawsuit by President Donald Trump against the Internal Revenue Service, acting Attorney General Todd Blanche testified to a House panel on Tuesday.
But Trump, his family members and related business entities remain protected from tax audits and enforcement actions in connection with tax returns filed before last month's out-of-court settlement of his lawsuit, Blanche told the House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies.
Blanche, who previously served as Trump's criminal defense attorney, personally signed off on the DOJ's May 19 addendum to the settlement of the lawsuit that gave Trump and his family that protection, a day after the deal was announced.
The addendum also bars the DOJ from prosecuting Trump and the others for cases that would be based on "Lawfare and/or Weaponization," without defining what those terms mean or what alleged conduct by the targets could entail.
"We are not moving forward with the fund, period," Blanche told Rep. Grace Meng, D-N.Y., the ranking member of the subcommittee. But he later refused to put that promise in writing despite telling Meng that the DOJ would never relaunch the fund.
Blanche's answer came a day after the DOJ said it would not "proceed" with the fund in order to comply with a federal judge's order temporarily blocking it from operating as one of three lawsuits challenging it proceeded. Blanche told Meng that the DOJ would not operate the fund regardless of the outcome of the lawsuits.
Critics of the fund said that the DOJ's statement did not make clear whether the department had dropped any plans for the fund.
Those critics, who include Republican senators, opposed the fund because of the lack of legislative oversight over the fund, and concerns that it would pay people convicted of attacking police officers during the Jan. 6, 2021, attack on the U.S. Capitol by a mob of Trump supporters.
Rep. Rosa DeLauro, D-Conn., fumed at Blanche after he told her he would not rescind the addendum that granted Trump and his relatives protection from regulatory or legal enforcement actions related to their past returns.
"Simply put, you just gave the president's family a tax immunity to the tune of about $100 million," DeLauro said, referring to the amount that The New York Times last month estimated could be the tax liability that Trump would have faced under a previously pending IRS audit.
Blanche replied: "Not true."
DeLauro continued, "Well, yes, you have, my friend," over his objections.
"You know, look, and I just want to say this: the Save America PAC [political action committee controlled by Trump] paid you nearly $10 million between March of 2024 and December of 2024 to serve as President Trump's personal defense attorney," she said.
"My God, don't you not find there's any conflict of interest in what you are doing here as the acting Attorney General of the United States?" DeLauro asked Blanche.
He replied: "What are you saying is a conflict?"
"I don't understand what you're saying," Blanche said.
"It's not immunity," said Blanche, who then argued that it is "typical to get rid of past ongoing audits" as part of settlements with the IRS.
"It's not a forward-looking document," Blanche said. "It's nothing that gives any sort of immunity in the future to the president or his family or his organizations."
Sen. Bill Cassidy, R-La., who was speaking at the CNBC CEO Council Summit as Blanche testified, said, "I am not confident the weaponization fund will not go forward."