Trump Cares More About His Slush Fund Than Todd Blanche
The Atlantic · LC · trust 65/100
The president seems less willing to let go of $1.8 billion than his pick for attorney general.
Sha Hanting /China News Service / AP July 31, 2026, 10:44 AM ET Share Save This is an edition of The Atlantic Daily, a newsletter that guides you through the biggest stories of the day, helps you discover new ideas, and recommends the best in culture. Sign up for it here.
Acting Attorney General Todd Blanche, Donald Trump blared yesterday on social media, “is a STAR, and everyone knows it!” But the rest of the presidential missive told a very different story. Blanche’s nomination to run the Justice Department has stalled over objections from outgoing Republican Senators Thom Tillis and John Cornyn to a settlement between Trump and the IRS that would create a $1.8 billion slush fund for rewarding Trump’s political supporters, including those convicted of crimes on January 6, 2021. Tillis and Cornyn have demanded that Blanche deliver written guarantees that the fund would not proceed, and they remain unsatisfied with what they’ve received. Although a deal may still be struck, Trump wrote in his post that he had “no objection to temporarily withdrawing” Blanche’s nomination “and putting him back after Cornyn and Tillis are out of office.”
The senators met with Blanche last night and could still waver, and Trump could still change his mind, but the president this morning posted a strong defense of the slush fund and attacked Cornyn. “John Cornyn never had a problem with the so called ‘Fund,’ which will not benefit me, but rather the great American Patriots who were hunted down like dogs and whose lives were unfairly and illegally destroyed by the Crooked Joe Biden Administration, until after I decided to Endorse and Support his Republican Primary opponent in Texas,” he wrote. “Todd Blanche, a good man, should be immediately approved as U.S. Attorney General.”
This moment of peril for Blanche’s nomination reveals three things: First, dissident Republicans really can push Trump around if they want to; second, Trump (as usual) seemingly has no strategy or contingency plan to save the nomination; and third, Trump apparently cares more about preserving the slush fund than he does about Todd Blanche.
If Trump really valued Blanche, then reaching an agreement with Cornyn and Tillis would be easy: He’d just have to give up on the fund. Not only is the planned payout politically toxic, but courts may prohibit it anyway. The fund emerges from a settlement in a case filed by Trump against the federal government over a leak of his personal tax returns. In exchange for dropping the case, the government agreed to grant Trump and his family immunity from IRS audits and to create a $1.8 billion pot of money for supposed victims of a “weaponized” federal government, such as people prosecuted for their role in the January 6 insurrection.
The fund is an abomination for several reasons, as my colleague Jonathan Chait wrote when it was announced. The deal was struck between Trump as plaintiff and Trump as head of the executive branch—an arrangement a federal judge later said is improper. It gives the president an opportunity to direct taxpayer money to his allies and supporters—and specifically people who attempted to subvert the 2020 election and rioted at the U.S. Capitol.
One federal judge, Leonie Brinkema, is currently blocking the fund’s creation, and another, Kathleen Williams, concluded that the settlement was improper self-dealing and harshly criticized Blanche’s role in negotiating the deal as acting attorney general. Blanche himself told senators that the money wouldn’t be paid out, but as my colleague Sarah Fitzpatrick reported in June, administration officials said privately that it wasn’t really dead. That helps explain why Brinkema requested a sworn statement from Blanche about the demise of the fund, and why Cornyn (who lost a GOP primary in May) and Tillis (who decided to retire) have said they want written assurances from Blanche.
By announcing that he would rather pull Blanche’s nomination, even temporarily, than allow Blanche or any other administration official to provide such assurances, Trump has implicitly confirmed that he has no intention of letting go of the fund. His statement also undercuts Blanche’s credibility with senators because it shows that Blanche was either not telling the truth or was making a promise he couldn’t keep when he said earlier that the fund wouldn’t proceed.
The idea of renominating Blanche later on may well be a feint anyway, since Trump hates to ever admit defeat, but it’s peculiar. Trump’s unstated premise is that he will have a more favorable Senate in 2027, which is questionable. Cornyn and Tillis are currently preventing Blanche’s nomination from advancing out of the Senate Judiciary Committee, and neither man will be on that panel come January. But most forecasts suggest that Democrats will gain ground in the Senate in the midterm elections, and possibly even win a narrow edge in the chamber. Either way, Blanche will still have a hard time getting the necessary votes for confirmation next year.
That is especially true because Trump’s power over Republican senators appears to be on the wane. For years, senators have trash-talked Trump privately, but meekly followed him in public. Tillis and especially Cornyn made their hesitations about Blanche public weeks ago, and the White House seems to have wagered that they would simply give in as GOP members have in the past. (The administration may have underestimated Cornyn’s taste for revenge against a president who endorsed his opponent in the primary.) At the same time, Trump has been unable to persuade all Republican senators to back the SAVE America Act, a bill that would require people to present proof of citizenship to vote, and they have shrugged off his demands to eliminate the filibuster in order to pass it. After all, they know that they could be in the minority within six months.
What made Blanche…
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