Two GOP holdouts put Todd Blanche’s attorney general bid at risk

President Donald Trump’s pick for attorney general is facing a real math problem in the Senate Judiciary Committee. For everyday investors, the fight matters because the attorney general leads the Justice Department, the agency that can shape enforcement priorities across corporate crime, antitrust, crypto, taxes and political investigations.

Two Republican senators on the committee, John Cornyn of Texas and Thom Tillis of North Carolina, said Thursday they had not decided whether to support Todd Blanche, who is serving as acting attorney general. Their hesitation could block Blanche from reaching a vote in the full Senate.

Cornyn told MS NOW that he was “still considering it” when asked about Blanche’s nomination. Asked directly whether he remained undecided, Cornyn answered, “Yeah,” adding that he had said so several times.

Tillis used Thursday’s hearing to lay out conditions for his support. He said he wants Blanche to meet with victims of Jeffrey Epstein before he will vote to advance the nomination from committee.

“I have not made a final decision, but Mr. Blanche said very quickly yesterday that he would meet with the Epstein victims today if it could be arranged,” Tillis said at the hearing, which Blanche did not attend. Tillis added that he expected the meeting to happen before he was willing to vote Blanche out of committee.

Why the committee vote is tight

The Judiciary Committee currently has 11 Republicans and 10 Democrats after Sen. Lindsey Graham, Republican of South Carolina, died unexpectedly last weekend. If either Cornyn or Tillis votes no and all Democrats oppose Blanche as expected, the nomination would be stuck in committee and would not go to the full Senate.

Blanche was confirmed by the Senate last year as deputy attorney general. He has been acting attorney general since April, when Trump fired Attorney General Pam Bondi. If the Senate does not confirm him as Bondi’s replacement, Blanche could remain in the acting role.

The nomination has also become a test of how much resistance Trump can face from Republican senators who are leaving office. Cornyn is due to leave the Senate in early January after losing the Texas Republican Senate primary in May. Tillis has also raised concerns about the administration’s handling of the Justice Department.

The DOJ fund is central to the dispute

Both Cornyn and Tillis focused on a canceled $1.8 billion Justice Department “Anti-Weaponization” fund. Blanche created the fund as part of an out-of-court settlement of Trump’s lawsuit against the Internal Revenue Service. The money was meant for people described as victims of prosecutorial overreach by the Justice Department.

Critics, including some Republican senators, called the proposal a “slush fund.” They raised concerns that it could be used to compensate people convicted of assaulting police officers during the Jan. 6, 2021, attack on the U.S. Capitol by Trump supporters.

Blanche has told Congress the fund is dead, according to his testimony, but he has not put that position in writing in court filings tied to a lawsuit challenging the fund’s legality. Trump has also continued to show interest in the fund after Blanche said it was dropped because of legal challenges.

Cornyn pressed Blanche on Wednesday about whether Trump and other plaintiffs in the IRS case could sue to revive it, pointing to settlement language saying the agreement “may be modified only upon the written agreement of the parties.” Blanche replied that they could sue, but said litigation would not revive the fund because “there’s no fund.”

On Thursday, Cornyn said “yup, yup” when asked whether he remained concerned about whether the fund was actually dead. Tillis said he wants specific written assurances, describing the fund as “this turkey of an idea.”

Former Attorney General John Ashcroft testified Thursday in favor of Blanche. Epstein survivor Dani Bensky testified against him, saying Blanche had overseen the release of materials that exposed victims’ identifying information and documents describing abuse, including her own.

This story draws on original reporting from CNBC.