The $1.8bn slush fund defended by Donald Trump is now the central obstacle in the Senate confirmation of Todd Blanche as US attorney general. Trump's public support for the controversial payout scheme has intensified scrutiny, delaying Blanche's nomination and raising questions about the Department of Justice's independence.
What Is the $1.8bn Slush Fund?
The proposed fund originates from a $10bn lawsuit Trump filed against the IRS over the leak of his tax returns. Under a settlement agreement, the DOJ proposed creating a secretive fund with no restrictions, intended to compensate Trump's allies—including those convicted in the January 6 Capitol riot. The fund also barred the IRS from auditing Trump's tax returns, drawing immediate criticism from Democrats and government watchdogs.
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Key Provisions of the Proposed Fund
- Fund size: $1.8 billion, sourced from government settlement.
- No restrictions on recipients, allowing payments to political allies.
- Prohibition on IRS audits of Trump's tax returns.
- Blanche initially declared the fund "dead" after backlash, but has not provided written assurances to Senate Republicans.
How It Derails Todd Blanche's Confirmation
Todd Blanche, who served as acting attorney general after Trump fired Pam Bondi in April, is Trump's pick for the permanent role. However, two Senate Judiciary Republicans—John Cornyn (TX) and Thom Tillis (NC)—have demanded written guarantees that the fund will never be activated. Without these assurances, the committee's vote to advance Blanche's nomination was postponed this week.
Trump responded on Truth Social, insisting Blanche "should be immediately approved" and defending the fund as compensation for "victims of government abuse." He added that he gave up any payments for himself, but the controversy persists.
Comparison: Slush Fund vs. Traditional DOJ Settlements
| Aspect | Proposed Slush Fund | Standard DOJ Settlement |
|---|---|---|
| Recipient restrictions | None | Strict eligibility criteria |
| Oversight | Secretive, no public reporting | Congressional oversight |
| Tax audit waiver | Yes, for Trump | No waivers |
| Political use | Potential payments to Jan 6 defendants | Prohibited |
Political and Legal Implications
Democrats and watchdogs have labeled the fund a slush fund, warning of a dangerous precedent where the DOJ can distribute money to presidential allies without accountability. The delay in Blanche's confirmation highlights the tension between Trump's demands and Senate oversight.
If the fund is revived, it could face legal challenges for violating separation of powers and appropriations rules. Meanwhile, Blanche's future hangs in the balance, with the committee vote indefinitely postponed until he provides the requested assurances.
Key Takeaways
- Trump's $1.8bn slush fund is the primary sticking point in Blanche's confirmation.
- Two Senate Republicans require written assurance the fund is dead.
- The fund would have barred IRS audits of Trump's tax returns.
- Payments could go to January 6 defendants, fueling ethical concerns.
- Blanche's nomination is stalled, leaving the DOJ without a permanent leader.