DOJ Rebuts Durbin's $1.8 Billion Fund Claim as Blanche Faces Senate Hearing

Q: Is the controversial $1.8B fund truly 'dead' without a formal written cancellation from the Justice Department?

Not entirely. The fund appears inactive in practice, but without a standalone written cancellation or a binding legal bar, questions remain about whether it could be revived. The strongest evidence that it is effectively shut down is the Justice Department’s own conduct. DOJ lawyers told a federal court the fund “is not going forward,” that no money was transferred, no panel members were appointed, no claims process was created, and no claims were paid. Acting Attorney General Todd Blanche has also publicly said the department is “not moving forward with the fund, period.” Those are formal representations, especially the court filing, even if they are not a separate cancellation letter. But that is not the same as making the fund impossible to restart. The department has reportedly not issued a distinct written rescission to Congress, and it has resisted a permanent court order blocking the program, arguing mainly that the case is moot. That has fueled concern among lawmakers and litigants that a future reversal remains possible, particularly because the underlying Judgment Fund still exists as a source of settlement money. So, in practical terms, the fund is dormant and the DOJ says it is over. In legal and institutional terms, it is not as definitively “dead” as it would be if the department formally withdrew the settlement in writing, a court permanently barred it, or Congress enacted a statutory prohibition.

3 articles · Updated · The Daily Beast · Jul 15

Dick Durbin said Todd Blanche privately called the DOJ’s $1.8 billion “anti-weaponization” fund a “mistake” and said he did not want it to go forward, but declined to put that in writing.
The Justice Department quickly pushed back, saying Durbin took a cordial private meeting out of context and that Blanche would answer questions publicly at Wednesday’s Senate Judiciary Committee confirmation hearing.
The fund was designed to compensate Trump allies who said they were wrongly targeted by the Biden and Obama administrations, including some convicted in the Jan. 6 Capitol attack.
That plan had already drawn bipartisan condemnation because it was tied to Trump dropping a $10 billion lawsuit against the IRS, and DOJ said last month it would no longer proceed with the program.
Blanche’s role in creating and unwinding the fund is now set to become a central Democratic attack line as he seeks permanent confirmation to lead the department.