Trump’s tax immunity scheme hoists president by his own petard on Blanche AG nomination

by | Jul 31, 2026 | Politics

Trump’s tax immunity scheme hoists president by his own petard on Blanche AG nomination

President Trump declined to provide written assurances limiting the scope of a controversial tax settlement agreement, complicating efforts to secure Senate confirmation of Todd Blanche as attorney general. The agreement, reached to resolve a lawsuit seeking $10 billion in damages over unauthorized disclosure of Trump’s tax records, included broad tax immunity protections and a disputed $1.8 billion fund.

Senators John Cornyn of Texas and Thom Tillis of North Carolina initially withheld support for Blanche’s permanent confirmation, seeking clarification that the tax immunity provisions applied only to named plaintiffs in the case, exclusively to the IRS, and covered only past tax returns. Blanche, Trump’s former personal lawyer and current acting attorney general, had publicly stated the slush fund portion of the settlement was not moving forward, but the senators sought formal written documentation of these limits.

Trump publicly responded by attacking both senators on social media, referencing past disagreements and suggesting he could temporarily withdraw Blanche’s nomination if they failed to support him. The president’s resistance to conceding ground on the settlement terms appeared connected to the substantial financial stakes involved. According to reports, a single IRS audit could have cost Trump approximately $100 million, making the immunity provisions valuable to the president and his family.

Late Thursday discussions between Blanche and both senators suggested potential resolution was within reach. However, under federal law, Blanche can continue serving as acting attorney general indefinitely without Senate confirmation, eliminating any immediate pressure to finalize negotiations. Cornyn indicated separately that concerns about the settlement provisions extended beyond himself and Tillis, suggesting resistance to confirming Blanche might persist beyond the midterm election cycle.

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