Trump Defends $1.8bn Slush Fund Blocking Todd Blanche 2026

The $1.8bn slush fund defended by President Trump is now the central obstacle delaying Todd Blanche’s confirmation as U.S. attorney general. Trump’s public backing of the controversial payout scheme, which would compensate his allies and bar IRS audits, has sparked bipartisan backlash and stalled Senate proceedings.

Blanche, who has served as acting attorney general since Pam Bondi’s firing in April, was expected to be confirmed quickly. However, the proposed fund—created under a settlement related to Trump’s $10bn lawsuit over leaked tax returns—has raised alarms among Democrats and government watchdogs, who call it a thinly veiled bribe mechanism.

What Is the $1.8bn Slush Fund?

The fund, proposed by Department of Justice officials, would distribute money with no restrictions to allies of the president. It also includes a provision barring the IRS from auditing Trump’s tax returns, a move critics argue is an abuse of executive power. The plan emerged from a settlement to resolve Trump’s lawsuit against the IRS over the leak of his tax records.

Trump defended the fund on Truth Social, stating that his supporters—whom he described as “victims of government abuse”—deserve compensation. He also noted he gave up any personal payments, which he claimed would have been substantial.

Why Is It Blocking Blanche’s Confirmation?

Senate Judiciary Committee Republicans John Cornyn (TX) and Thom Tillis (NC) have demanded written assurances that the fund will never be activated. Blanche has not provided such assurance, leading to a postponed committee vote this week. Without their support, Blanche’s confirmation could fail in the closely divided Senate.

The standoff highlights a rare rift between Trump and Senate Republicans, who are wary of endorsing a scheme that could be seen as rewarding January 6 rioters. Democrats have seized on the issue, framing it as a test of whether the Senate will serve as a check on executive overreach.

Key Details of the Controversy

Political Fallout and Next Steps

The postponement of Blanche’s committee vote is a significant setback for the Trump administration. Senate Majority Leader has not yet scheduled a new vote, and negotiations are ongoing behind closed doors. Blanche has reportedly signaled willingness to discuss the issue but has stopped short of pledging to permanently kill the fund.

Legal experts note that even if the fund is abandoned, the IRS audit ban could remain a sticking point. Some senators have suggested they would accept a compromise that eliminates the fund but retains the audit protection, though Democrats are unlikely to agree.

Key Takeaways

• Fund size: $1.8bn, with no oversight or restrictions on recipients.
• Origin: Settlement of Trump’s $10bn lawsuit against the IRS over tax return leaks.
• Blanche’s role: Acting AG, nomination stalled due to lack of written assurance.
• Senate opposition: Two Republicans demand fund is permanently deactivated.
• Potential impact: Could set precedent for using DOJ funds to reward political allies.

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