The DOJ’s $1.8 Billion Fund Courts Blocked — And the Man Who Created It

Trump’s acting Attorney General Todd Blanche faces a Senate confirmation fight that could expose serious conflicts between his past role as the president’s personal lawyer and his current duty to enforce the law for all Americans.

Story Snapshot

  • Trump fired Pam Bondi in April 2026 and elevated Blanche — his former personal defense attorney — to acting Attorney General, a role that now requires Senate confirmation.
  • Less than two weeks into his earlier job as Deputy Attorney General, the Department of Justice’s top career ethics lawyer formally told Blanche he needed to step aside from cases involving Trump personally.
  • The Department of Justice created a $1.8 billion “anti-weaponization” fund to pay people who claim they were targeted by the Biden administration — federal courts have since blocked any payouts.
  • Blanche stated under oath that he would follow ethics guidance on recusals, but Democrats say his actions since then contradict that pledge.

From Defense Lawyer to Acting Attorney General

Todd Blanche spent years defending Donald Trump in multiple criminal cases, including the New York trial that ended in a conviction on 34 felony counts. He also represented Trump in two federal cases brought by special counsel Jack Smith. In February 2025, Trump nominated him for Deputy Attorney General. The Senate confirmed him 52–46 in March 2025. After Trump fired Pam Bondi on April 2, 2026, Blanche stepped into the acting Attorney General role by presidential order — not Senate confirmation.

At his February 2025 confirmation hearing, Blanche told the Senate Judiciary Committee that he did not see the Deputy Attorney General job as “the president’s lawyer.” He said Department of Justice attorneys work for the United States, not the president. He also pledged under oath to follow ethics guidance on recusals. “I will follow the rules as told to me by the experts, career prosecutors in the department, if it comes to ever recusing,” Blanche said.

Ethics Warning He May Have Ignored

Reports show that in March 2025 — less than two weeks after Blanche became Deputy Attorney General — the Department of Justice’s top career ethics lawyer formally told him he needed to recuse himself from any cases involving Trump in a personal capacity. Senator Adam Schiff of California launched a Senate inquiry into whether Blanche followed that advice or ignored it. Schiff’s office noted that Blanche was later involved in matters tied to Trump’s personal lawsuits against federal agencies seeking financial payouts.

The recusal question matters because Blanche’s oath to the Senate was specific. He promised to step aside when ethics officials told him to. If he received a formal written directive and stayed involved anyway, that is a direct conflict with his sworn testimony. The confirmation hearing ahead gives senators a chance to demand a clear answer. Blanche’s defenders argue the Department of Justice acted within its authority and that the president did not direct him personally on any of these decisions.

The $1.8 Billion Fund Under Fire

The biggest flash point in Blanche’s recent hearings is a $1.8 billion fund the Department of Justice created to compensate people who say they were wrongly targeted by the Biden administration. Critics in both chambers called it a “slush fund” with no congressional oversight and no cap on claims. Federal courts have blocked any payouts for now. Blanche told senators the fund is open to any American who believes they were a victim — not just Trump allies — and that Trump’s family would not receive direct payments.

Blanche also signed a memo stating the federal government is permanently barred from pursuing tax-related claims against Trump, his family, or their businesses. House members pressed him hard on this at a June 2026 oversight hearing. He acknowledged the anti-weaponization fund itself would not move forward, but said a separate settlement agreement he signed was still valid. The lack of transparency and the absence of any congressional vote on the fund are legitimate concerns that senators on both sides of the aisle have raised heading into the confirmation process.

What the Confirmation Hearing Must Answer

Blanche’s confirmation hearing will be a high-stakes test. Senators need straight answers on three things: whether he followed the ethics recusal order, whether the $1.8 billion fund was created with proper legal authority, and whether he can run the Department of Justice independently from the man who was once his client. Blanche has repeatedly said, “Politics should never play a role in the Department of Justice.” The hearing is where he will have to prove he means it — under oath, on the record, with follow-up questions he cannot dodge.

Sources:

[1] Web – Some Question for Todd Blanche’s Upcoming Confirmation Hearing

[2] YouTube – Acting AG Todd Blanche testifies before Senate committee | full video

[3] Web – DOJ Appropriations Hearing Todd Blanche

[4] YouTube – Acting Attorney General Todd Blanche testifies before House panel on …

[5] YouTube – LIVE: Todd Blanche testifies before Senate panel on DOJ’s 2027 budget …

[6] Web – Trump DOJ Nominee Wants To Keep Jack Smith’s Mar-a-Lago Report Under …

[7] Web – Acting AG Todd Blanche Faces Senate Grilling Over DOJ Oversight …

[8] Web – NEWS: Sen. Schiff Launches Inquiry into Acting Attorney …

[9] YouTube – LIVE: Todd Blanche’s confirmation hearing for deputy attorney general

[10] YouTube – Former Trump attorney Todd Blanche’s confirmation hearing to be Deputy …

[11] YouTube – Acting US AG Todd Blanche testifies before Senate Appropriations …

[12] YouTube – Acting Attorney General Todd Blanche appears before Senate hearing

[13] Web – Deputy AG nominee Todd Blanche slams Trump prosecutions during …

[14] Web – Todd Blanche: Nomination to serve as deputy AG is ‘my American dream’

[15] Web – When DOJ Hiring Becomes a Loyalty Test, the Rule of Law Is …

[16] Web – Does a Politically Directed Department of Justice Merit the …

[17] Web – How Trump’s Acting U.S. Attorneys Are Driving the DOJ’s …

[18] Web – Politicization of Department of Justice – Center for Public Integrity

[19] Web – The Department of Justice’s Broken Accountability System

[20] Web – An Insider’s View of Presidents and Their Attorneys General

[21] Web – OIG Special Report: An Investigation into the Removal of Nine U.S. …

[22] Web – List of Department of Justice appointments by Donald Trump – Wikipedia

[23] Web – CAN THE PRESIDENT CONTROL THE DEPARTMENT OF …

[24] Web – List of Department of Justice appointments by Joe Biden – Wikipedia

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