Blanche kills Trump fund but leaves legal loose ends

Acting Attorney General Todd Blanche rescinded the order setting up President Trump's $1.776 billion "anti-weaponization" fund Sunday, a move aimed at ending a Republican blockade of his confirmation that leaves the underlying settlement unresolved.

Why it matters: Blanche has faced unusual resistance from two Senate Republicans on a committee where he cannot afford to lose two GOP votes in order to advance to a full Senate hearing.

Catch up quick: The fund grew out of a May settlement of Trump's lawsuit against the IRS over the disclosure of his tax records.

• The settlement promised an apology to Trump and his sons, and it created the fund for individuals claiming they suffered from government "lawfare."
• Another agreement released Trump, his family and the Trump Organization from certain IRS claims and audits.

Of note: Blanche's new order rescinds one from May implementing the nearly $1.8 billion fund, but not the settlement provision requiring the attorney general to create the fund.

• The settlement's terms can only be changed via a written agreement from the Trumps and the government. Sunday's order was signed by Blanche but not by Trump, his sons or the Trump Organization.
• At his hearing before the Senate Judiciary Committee last month, Blanche acknowledged that the settlement was enforceable and that Trump's lawyers could try to enforce it or claim the DOJ breached the agreement by refusing to operate the fund.

Blanche also clarified the sweeping protections Trump received from tax audits on Sunday.

• In a statement released with the order, Blanche said the protections only apply retroactively and only to the lawsuit's named plaintiffs: Trump, some of his family, and the Trump Organization. The earlier agreement said it extended to any "related or affiliated" individuals, companies and other organizations.

State of play: The new order may be enough to secure Blanche's confirmation.

• A spokesperson for Sen. John Cornyn (R-Texas) said in a statement that Blanche's new orders was part of an agreement with Cornyn "permanently terminating the anti-weaponization fund and making clear in a binding written document that the scope of the audit settlement is limited to only the plaintiffs, including the President, and the IRS."
• Sen. Thom Tillis (R-N.C.), the other Judiciary Committee Republican withholding support, has not yet said if he will advance Blanche given the new order.
• Tillis, the Justice Department and the White House did not immediately return requests for comment. A spokesperson for Cornyn didn't answer questions and repeated his earlier statement.

Friction point: Trump complicated the negotiations Saturday when he threatened to keep Blanche as acting attorney general and revive the fund.

• "It will immediately be back on the table, and I will get it done," he wrote.

Flashback: U.S. District Judge Kathleen Williams found that Trump's initial lawsuit was brought to manipulate the judicial process since Trump controlled both sides of the litigation.

• She stopped short of deciding if the agreement was enforceable as a private contract.
• U.S. District Judge Leonie Brinkema barred the DOJ from operating the fund, but she said she'd likely dismiss that case if top officials killed the fund.
• U.S. District Senior Judge Richard Leon reached a different result in a separate case, declining to block the fund since the Justice Department had said it was not moving forward.

What's next: Blanche cannot afford any Republican defectors to advance through the committee.

• The Judiciary Committee has scheduled a vote on Tuesday.