WASHINGTON — Acting Attorney General Todd Blanche rescinded a plan for a $1.8 billion fund overnight, moving to clear a major obstacle to his permanent confirmation by the Senate.
Senators John Cornyn of Texas and Thom Tillis of North Carolina had demanded the move and had been blocking Blanche's nomination over it. Both sit on the Judiciary Committee.
The initiative, which the administration called the "anti-weaponization fund," was part of a deal struck with the Internal Revenue Service. It included a provision that would have shielded President Trump and his family from past tax audits.
Trump had threatened over the weekend to revive the fund if Cornyn and Tillis did not drop their objections.
Blanche's letter said the fund "is not moving forward." It did not characterize the fund as inappropriate, nor did it say what Blanche would do if Trump ordered him to revive it.
Blanche still faces a difficult confirmation vote. Senate Republicans operate with tight margins, and his support in the broader conference remains uncertain.
The fund dispute is one of several flashpoints between Trump and Senate Republicans. Another is Trump's push for the SAVE America Act, a bill that would require proof of citizenship and photo identification to vote. Trump has publicly criticized Senate Majority Leader John Thune for not advancing the legislation.
Trump has suggested the Senate may need to eliminate the filibuster to pass such bills. Asked recently about Thune's leadership, Trump stopped short of a strong endorsement.
Many senators are reluctant to cancel the August recess to debate the SAVE America Act. Most acknowledge Republicans do not have the votes to pass Trump's full agenda.
The Senate faces broader legislative pressure before recess begins at the end of the week. Democratic and Republican appropriators remain deadlocked over top-line spending levels, stalling work on the 12 annual appropriations bills ahead of the September deadline. A budget framework for a potential Iran war is also unresolved among GOP lawmakers.

