United States • 🌿 Progressive

Trump tax shield stays intact as Blanche struggles to close the deal

Trump tax shield stays intact as Blanche struggles to close the deal

A clause in the Trump-IRS settlement shielding the president and his family from IRS audits of past returns remains active, even as Blanche declared the $1.776…

While Todd Blanche told the Senate Judiciary Committee on Wednesday that the $1.776 billion anti-weaponization fund is effectively dead, a separate clause in the same Trump-IRS settlement continues to shield the president, his family, and his businesses from IRS audits of past tax returns. According to NPR, that protection remains in place regardless of the fund's status — a distinction that received less attention than the headline number during the July 15 hearing. 🔹 What happened: Blanche, currently serving as acting attorney general, appeared before the committee to advance his nomination as permanent attorney general. He had already been confirmed as deputy attorney general at the start of Trump's second term. Under questioning from Republican Sen. John Cornyn of Texas, Blanche confirmed that the settlement is still a legally enforceable contract, and that Trump's legal team could theoretically argue the DOJ breached it by not activating the fund. A federal judge on Monday had already criticized the fund, saying it attempted to use the courts to allocate public money to compensate claims "not defined in the law." Blanche said he had no knowledge of any push to enforce the contract. 🔹 Why it matters: For ordinary taxpayers who have no settlement agreement with the DOJ, the audit protection clause in the Trump-IRS deal represents an individually tailored arrangement with the federal government's primary tax enforcement agency. EPM has documented how American workers have faced persistent cost pressures in recent months. The contrast with a legal arrangement that insulates a sitting president's finances from IRS review is a concrete, documented asymmetry — not a rhetorical one. Blanche's confirmation is now contingent on Cornyn and every other Republican on the committee holding their vote. 📌 EPM Take: Cornyn did not need a lengthy legal argument on July 15 — he used a poster board with the settlement's actual text to show what Blanche's assurances could not erase: the contract exists, it is enforceable, and the IRS audit shield for Trump's family is active. EPM's recent coverage tracked how inflation relief for workers can vanish with a single policy shift. The tax audit protection for Trump's businesses faces no such volatility — it is locked in a signed contract. The question ordinary citizens should be asking is not whether the $1.776 billion fund is dead. It is why the clause protecting the president's past tax returns from IRS scrutiny was written into a federal settlement in the first place.
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