Todd Blanche nomination stalls as Cornyn presses DOJ on Trump IRS deal
Sen. John Cornyn says he is not ready to back Todd Blanche without written DOJ assurances on Trump’s IRS settlement.
By Dev Ramirez · Crypto Correspondent
· 3 min read
The Todd Blanche nomination for attorney general ran into trouble Wednesday after Sen. John Cornyn, R-Texas, canceled a planned meeting with Blanche for the second time. Cornyn said the Department of Justice has not answered his concerns about a tax settlement involving President Donald Trump, a fight that now threatens Blanche’s path out of committee.
For everyday investors and taxpayers, the issue is bigger than one confirmation vote. The dispute centers on whether a legal agreement tied to Trump’s IRS lawsuit could limit future tax audits or enforcement actions involving Trump, his family members and business entities.
Why is Todd Blanche's nomination in trouble?
Blanche, the acting attorney general, needs a majority vote from the Senate Judiciary Committee before the full Senate can consider his nomination. The committee is scheduled to vote Thursday and has 12 Republicans and 10 Democrats. CNBC reported that every Democrat is expected to oppose him.
That math gives Cornyn and Sen. Thom Tillis, R-N.C., unusual leverage. If either Republican votes no, Blanche’s nomination would not advance to the full Senate, according to CNBC. Cornyn told reporters he believed Tillis was “pretty much on the same page” as him, MS NOW reported.
Cornyn said Judiciary Committee Chairman Chuck Grassley, R-Iowa, told him he needed to know by 4 p.m. ET Wednesday whether Thursday’s vote could go ahead as planned. Asked whether he would vote no, Cornyn said he was “not prepared to vote ‘yes,’” according to CNBC.
Cornyn said he canceled the meeting because DOJ had not provided the written clarification he requested. Asked why the department had not satisfied his concerns, Cornyn told reporters, “beats me,” MS NOW reported. He added that DOJ officials may think he will “give up” or “go along,” but said they were mistaken.
What is the Trump IRS settlement?
The settlement resolved Trump’s lawsuit against the IRS over the illegal disclosure of his tax records by an agency contractor. A settlement is a legal agreement that ends a dispute without continuing the case in court.
Cornyn’s objection focuses on provisions that shield Trump, family members and business entities from IRS audits and enforcement actions related to tax returns filed by the date of the settlement, according to CNBC. An audit is a tax agency review of a return to check whether income, deductions and payments were reported correctly.
During his confirmation hearing, Blanche said the settlement was not meant to protect people who were not parties to the lawsuit, was not intended to provide future immunity from tax audits and did not apply to any government agency beyond the IRS and Treasury Department, CNBC reported.
Cornyn said those assurances should be put into a modified release form. He said he had not seen writing that responded to his request, according to CNBC.
A DOJ official told CNBC that the department had sent a written proposal to Cornyn’s staff after discussions with the committee and the senator’s office. The official said DOJ looked forward to more discussions about remaining concerns.
The political backdrop adds pressure. Cornyn is leaving the Senate in January after losing a Republican primary runoff in May to Texas Attorney General Ken Paxton, who was endorsed by Trump. Tillis is also retiring when his term ends in January.
This story draws on original reporting from CNBC.
