Two GOP Senators Stall Todd Blanche's AG Confirmation Over Trump-IRS Settlement

The Senate Judiciary Committee scrapped its planned Thursday vote on Todd Blanche's nomination for attorney general late Wednesday night, after two Republican senators refused to budge without written guarantees from the Justice Department about a settlement tied to President Trump's own tax fight with the IRS.

The holdouts are Sens. John Cornyn of Texas and Thom Tillis of North Carolina. Both sit on the committee. Both have enough leverage, if they vote no, to sink Blanche's nomination before it ever reaches the Senate floor.

What's actually in dispute

Blanche, currently serving as acting attorney general, oversaw the DOJ's settlement of Trump's $10 billion lawsuit against the IRS. That settlement, reached in May, barred the IRS from auditing or otherwise pursuing enforcement against tax returns filed by Trump, his family, or his business entities before the deal was struck, according to CNBC.

The settlement also originally created a $1.776 billion 'Anti-Weaponization Fund' meant to compensate people who claim they were targeted by politically motivated federal prosecutions. That fund drew bipartisan backlash when it became public in May, and the Justice Department announced in June it was no longer moving forward with it, according to PBS.

Nobody put that cancellation in writing to Cornyn's satisfaction. Cornyn told reporters Wednesday, 'I haven't seen a single piece of writing that is responsive to what I've requested,' according to CBS News. He said his demand was simple: get Blanche's own sworn testimony about the fund and about audit immunity down in writing, with specifics on who exactly is protected and which federal agencies are bound by the release. 'We've actually sent them a redline strikeout,' Cornyn said.

The DOJ says it's been trying. A department official told CBS News it delivered a 'written proposal' to Cornyn's staff on Tuesday. A DOJ spokesperson told CBS and other outlets the agency 'has been in regular communication with Committee members for weeks' and wants to keep working 'productively' with senators. A source told CBS a newer response was sent Wednesday that 'addresses their concerns.' Cornyn didn't see it that way.

Cornyn walked, twice

Cornyn canceled a planned sit-down with Blanche on Wednesday morning, for the second time, because he said the DOJ still hadn't clarified the audit-immunity language. 'Maybe they think I'm just going to give up or, you know, go along,' Cornyn said, according to CNBC. 'But they're mistaken.' He added that Tillis is 'pretty much on the same page' as he is.

Tillis sounded slightly more optimistic about a resolution but confirmed he shared Cornyn's concerns, according to CBS News. He warned earlier in the week that he didn't expect the issue to be fully resolved in time for a Thursday vote, and he was right.

Judiciary Chairman Chuck Grassley of Iowa met with both senators in Cornyn's office before pulling the plug on the vote. A committee spokesperson said Grassley 'works to set President Trump's nominees up for success in committee, not failure,' and that the postponement reflects ongoing work 'to secure sufficient support in committee to favorably report' Blanche.

Trump's response

Trump dismissed the holdup Wednesday, telling reporters in the Oval Office that Blanche is 'outstanding' and that 'you just wouldn't find a better person,' according to Forbes. He then suggested Cornyn's objections were personal: 'Maybe John Cornyn's upset with me because I didn't endorse him.'

Trump had endorsed Texas Attorney General Ken Paxton over Cornyn in the state's GOP Senate primary; Paxton won in May. Cornyn pushed back directly on that framing, telling reporters at the Capitol, 'I think that's a convenient excuse for not cooperating with the judiciary committee's appropriate role in the confirmation,' according to Forbes.

Trump has not commented on the actual postponement of the vote.

The stakes

Blanche is Trump's former personal defense attorney, now running the department that would oversee any future audits or enforcement actions touching Trump's own finances. The settlement he negotiated as acting attorney general gave Trump and his family blanket protection from IRS audits over prior returns, a fact that would matter regardless of who occupies the Oval Office.

Cornyn and Tillis aren't arguing the settlement was illegal. They're arguing the administration needs to put its own public commitments in writing before the Senate hands Blanche a permanent promotion to run the agency that cut the deal. That's a defensible ask from two Republicans who aren't exactly running as anti-Trump crusaders.

The Judiciary Committee has 12 Republicans and 10 Democrats. Every Democrat is expected to vote no on Blanche regardless of the IRS dispute, according to CNBC. That means Cornyn and Tillis alone can decide whether Blanche's nomination lives or dies in committee. No new vote date has been announced.