Todd Blanche’s effort to rescue his attorney general nomination eliminated a proposed $1.776 billion government fund while leaving intact a potentially valuable part of President Donald Trump’s settlement with the Justice Department: protection from federal tax examinations and claims involving returns filed before May 18, 2026.
Republican Senators John Cornyn and Thom Tillis had delayed Blanche’s nomination over both provisions. They agreed to support him after receiving written confirmation that the fund would not proceed and that the tax protection would be limited to the four plaintiffs who brought the original lawsuit.
The original May 19 Justice Department order used broad language. It said the US released the plaintiffs from covered claims and was “FOREVER BARRED and PRECLUDED” from pursuing examinations, reviews, liabilities, or other proceedings involving matters that were pending or could have been pending when the settlement became effective.
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That language included tax returns filed before May 18. The initial order also referred to related individuals, companies, trusts, affiliates, and government agencies, potentially extending its scope beyond the four plaintiffs named in Trump’s lawsuit.
Blanche’s latest clarification narrows those boundaries. According to the AP News, the protection now applies only to Trump, Donald Trump Jr., Eric Trump, and the Trump Organization. It applies retroactively and does not prevent the IRS from examining future filings.
The clarification therefore restricts who receives protection without withdrawing the protection itself.
Blanche has rejected descriptions of the arrangement as tax immunity. In written responses to senators, he characterized it as a release of limited claims involving specified tax returns and argued that the attorney general possesses authority to settle claims involving the US.
Trump’s tax records are private, making it impossible to calculate the exposure removed by the order. However, a 2024 investigation by ProPublica and The New York Times found that an IRS dispute involving Trump’s Chicago hotel could potentially produce a tax bill exceeding $100 million.
