Acting Attorney General Todd Blanche has issued a formal order to terminate the $1.8 billion “anti-weaponization fund” established by the Trump administration. The decision follows weeks of intense negotiations with Republican senators who had threatened to block Blanche’s nomination for the permanent attorney general position unless the controversial program was officially scrapped. While Blanche had previously stated the fund was no longer active, the formal written rescission provides the definitive closure that lawmakers and judicial observers had demanded.
The fund was originally created in May 2026 as part of a settlement agreement between the Trump administration and the Internal Revenue Service regarding the leak of the president’s tax returns. The initiative was designed to compensate individuals who claimed they were victims of government “weaponization” during the previous administration. However, the proposal faced immediate and widespread bipartisan criticism, with opponents labeling it a potential “slush fund” that could be used to pay political allies or individuals involved in the January 6 Capitol riots using taxpayer money.
Legal challenges against the fund had been mounting, with federal judges expressing skepticism about its structure and purpose. In June, a federal judge extended a block on the fund’s operation, arguing that the government’s claims that the program was moot were insufficient without a formal, sworn declaration. The formal rescission is expected to satisfy the concerns of holdout senators, clearing a significant hurdle for Blanche’s confirmation process.
Despite the cancellation of the fund, other elements of the original settlement agreement, including provisions related to tax investigations, remain in place. The Department of Justice has not provided further details on whether any administrative costs incurred during the brief existence of the fund will be recovered. For now, the move marks a significant retreat for the administration on a policy that had become a major point of political and legal contention.