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How Todd Blanche Engineered Trump’s $1.8 Billion Slush Fund & Sweetheart Tax Deal

By July 1, 2026July 20th, 2026No Comments

As Todd Blanche’s confirmation hearing approaches, the record reveals that the Acting Attorney General isn’t just willing to bend the Justice Department to Donald Trump’s will, he’s already tried to do it to the tune of $1.8 billion dollars. 

Rather than defending the federal government against Trump’s lawsuit targeting the IRS, Blanche settled it. He created a massive taxpayer-funded slush fund under his control, and tucked in a side deal attempting to shield Trump and his family from federal tax enforcement permanently. When Senate Republicans revolted against the fund in early June, Blanche quietly backed off in conversations while refusing to put it in writing and left Trump’s tax immunity intact.

Blanche is continuing his years-long stint as Trump’s personal defense attorney. Under his watch, the Trump administration has continued weaponizing the DOJ to protect the President and advance his vindictive agenda against perceived political opponents. 

As the Senate weighs whether to confirm Blanche permanently, his record raises an unavoidable question: is the nation’s top law enforcement officer interested in enforcing the law, or just protecting Donald Trump and his family from it?

Here’s what the record shows:

  • Blanche Settled Trump’s Lawsuit Against His Own Government With the $1.8 Billion Slush Fund. After Trump sued the IRS for $10 billion in January 2026 over his leaked tax returns, the DOJ was supposed to defend the federal government. Instead, Blanche’s DOJ announced in May 2026 it would settle the case, establishing a $1.776 billion fund for people claiming the government had been “weaponized” against them, paid for by taxpayers.
  • One Day Later, Blanche Quietly Immunized Trump From IRS Audits. The day after announcing the settlement fund, Blanche added an addendum that purports to orderthe IRS to permanently halt all current and future audits and inquiries into Trump, his family, and their businesses based on prior tax filings.
  • Blanche Designed the Fund to Answer to No One But Himself. At his Senate hearing in May, Blanche confirmed that no federal judge reviewed or approved the settlement. He also stated that he would have full control over appointing all five commissioners who decide which claims get paid. When pressed, he refused to rule out payouts to Trump’s campaign donors and political allies.
  • Blanche Only Backed Off the Fund After Senate Republicans Revolted, But Kept the Tax Immunity Deal.Top Senate Republicans balked when Blanche unveiled the settlement, including Senate Majority Leader John Thune (R-SD) and Senators Thom Tillis (R-NC)Bill Cassidy (R-LA)Jon Husted (R-OH)Dan Sullivan (R-AK)Mitch McConnell (R-KY)Chuck Grassley (R-IA), and John Curtis (R-UT). Under pressure from that backlash, Blanche claimed to retreat from the settlement fund in early June 2026 without putting it in writing, but left Trump’s tax immunity addendum in place, even as Republican senators continue to question it.
  • Blanche Did This as Trump’s Former Personal Defense Lawyer Without Ever Confirming He Recused Himself. Blanche spent years defending Donald Trump personally, including in the classified documents and January 6 obstruction cases. Within two weeks of becoming Deputy Attorney General, the DOJ’s top ethics lawyer formally advised him to recuse from matters involving Trump personally. That ethics official was then fired, and the DOJ has yet to release documentation showing Blanche actually complied. The department refuses to specify which matters he recused from.
  • The Same Blanche Who Built an “Anti-Weaponization” Fund Has Weaponized the DOJ Against Trump’s Critics. Under Blanche, the DOJ has used federal law enforcement to pressure law firms and attorneys representing the administration’s perceived opponents. This continues a retaliation campaign launched under his predecessor Pam Bondi, including investigations of former Special Counsel Jack Smith, Senator Adam Schiff, and New York Attorney General Letitia James.