Cornyn Cancels Second Meeting With Blanche as DOJ Fails to Put IRS Settlement Assurances in Writing

Second Cancellation, Same Demand

Sen. John Cornyn of Texas called off his second scheduled sit-down with acting Attorney General Todd Blanche on Wednesday. His reason hasn't changed: the Justice Department still won't put its promises about the Trump-IRS settlement in writing, according to CNBC.

Cornyn's vote matters because he sits on the Senate Judiciary Committee, which was scheduled to vote Thursday on whether to advance Blanche's nomination to the full Senate. The committee splits 12 Republicans to 10 Democrats. Every Democrat is expected to vote no, according to CNBC. That means Cornyn, or fellow holdout Sen. Thom Tillis of North Carolina, can sink the nomination by himself.

"Maybe they think I'm just going to give up or, you know, go along," Cornyn told reporters, according to CNBC. "But they're mistaken."

What Grassley's Meeting Did and Didn't Settle

Judiciary Chairman Chuck Grassley of Iowa met Wednesday afternoon with Cornyn and Tillis, trying to broker a path forward, according to Courthouse News. It didn't produce a deal.

Cornyn told Courthouse News he's decided to "wait and see" whether the Justice Department responds to his demands, adding, "I think the ball is in their court." Asked whether the committee would still vote Thursday morning, he said: "I don't know. This is a very unusual circumstance."

Tillis sounded more optimistic. "We've got a markup tomorrow, we've got time to maybe make it work," he told reporters, according to Courthouse News.

Grassley, asked directly by MS NOW whether the vote would happen as scheduled, would only say: "We're working on getting to a solution," according to CNBC.

What's Actually in Dispute

The fight traces back to the settlement of Trump's $10 billion lawsuit against the IRS over the 2019 leak of his tax returns. The deal dropped tax claims against Trump and originally created a $1.776 billion "Anti-Weaponization Fund" meant to compensate people who claimed they were wronged by DOJ prosecutions, according to PBS.

The Justice Department scrapped the fund in June after bipartisan blowback, PBS reported. But officials have said the separate audit-immunity piece of the settlement remains in place. A federal judge has also since tossed the underlying settlement, according to Courthouse News.

Cornyn and Tillis want something DOJ hasn't given them: a written commitment that the fund can never be revived, plus clarity on exactly how far the audit immunity extends. Blanche has said the immunity covers existing audits but doesn't shield Trump from scrutiny of future tax filings, according to PBS. A person familiar with the matter told PBS that DOJ did send Cornyn's office a written proposal addressing his concerns, though Cornyn's public remarks Wednesday suggest he doesn't consider it sufficient.

Cornyn used blunter language with Courthouse News, accusing DOJ of having "stonewalled" him on written assurances.

Cornyn's Position

Cornyn's demand isn't unreasonable on its face. A sitting president secured a settlement shielding his own past tax returns from audit, plus a nearly $1.8 billion fund he could theoretically use to reward allies who claim DOJ mistreatment. Getting that arrangement fully and permanently killed in writing, rather than trusting a verbal assurance from an administration that created it in the first place, is a legitimate ask from a senator whose job includes oversight of the Justice Department.

Blanche did tell senators at his confirmation hearing this month that the administration would help write legislation banning the fund outright, according to PBS. That's a concession. It's also not the same as an immediate written retraction, which is what Cornyn says he's still waiting on.

Trump, for his part, told reporters Wednesday afternoon that he believes Blanche's nomination "is going through quite nicely," according to CNBC. He also suggested Cornyn's holdout is personal, saying he thinks the senator is still sore that Trump endorsed Attorney General Ken Paxton over Cornyn in the Texas Republican primary. Cornyn lost that primary in May.

What Happens Next

The Justice Department did not respond to a request for comment from Courthouse News. Whether the committee's Thursday markup goes forward as scheduled, gets delayed, or proceeds to a vote that fails on Cornyn's or Tillis's no, remained unresolved as of Wednesday evening. If either senator votes against advancing Blanche, his nomination stalls in committee and never reaches the Senate floor.