Reed Tears into Acting AG Blanche Over Corrupt Creation of $1.8 Billion MAGA Slush Fund

WATCH: Sen. Reed questions Acting AG Todd Blanche

WASHINGTON, DC - Today, at a Senate Appropriations Commerce, Justice, Science, and Related Agencies (CJS) Subcommittee hearing, Acting Attorney General Todd Blanche attempted to dodge and deflect under questioning from U.S. Senator Jack Reed about the swindling of nearly $1.8 billion from U.S. taxpayers to create a political slush fund for President Donald Trump.

Reed noted that President Trump brought a lawsuit for misconduct that took place during his first Administration, by a contractor who was vetted and hired by the Trump Administration. Not only did the crime take place on President Trump's watch, but Trump then waited until he was back in office to try to bring the lawsuit and then "settled" his own case against the government he leads - before a judge could rule otherwise - with an agreement to grant nearly $2 billion in taxpayer money for distribution to "victims of lawfare" as his handpicked cronies see fit.

Moreover, when pressed by Senator Reed and others, Acting Attorney General Blanche refused to rule out that January 6th insurrectionists could get a financial windfall from President Trump - even those who were convicted of assaulting police. Blanche refused to rule out taxpayer-funded windfalls for J6ers, even though the press reported that some of the violent offenders pardoned by President Donald Trump already discussed using future restitution money from President Trump as hush money for victims of child sexual abuse.

"This all seems to be an obvious abuse of power by the Department of Justice, by the president," said Senator Reed. "He negotiated essentially with himself. You're his appointee. The IRS are his appointees. He's the plaintiff. And the American people I don't think are surprised that certainly all this money is going to his friends, or people … in his orbit. Will you ensure that none of this money goes to anyone convicted in the January 6 attack on the Congress?"

"Well, the commissioners will determine who is eligible to receive the money," Blanche replied.

Reed also noted that the so-called settlement was so indefensible, reprehensible, and unprecedented that on the same day it was announced, the U.S. Treasury Department's chief legal officer resigned. Reed asked Blanche if he was aware of the reason for the Treasury general counsel's resignation, to which Blanche replied: "I don't know if it's a coincidence. I can't speak to why he resigned."

Reed also took Mr. Blanche to task for his controversial 2025 jailhouse meeting with Ghislaine Maxwell, a convicted sex trafficker who was Jeffrey Epstein's co-conspirator and a friend of Donald Trump. A bombshell Wall Street Journal article first reported in July 2025 on the existence of a fawning personal note and sexually suggestive drawing for Jeffrey Epstein's 50th birthday that was signed by Donald Trump. Days later, Mr. Blanche went to visit Ms. Maxwell in Florida - where she was serving a 20-year prison sentence for her role in recruiting and trafficking minors for sex and complaining about prison conditions -- and her lawyers for a face to face meeting. While a transcript of the 'on the record' portion of that meeting exists, there is no record of any sidebars between Mr. Blanche and Ms. Maxwell's attorneys or what conditions led to her agreeing to sit for the recorded interview. What is known is that just days after the meeting occurred, Ms. Maxwell was mysteriously transferred from a Federal Correctional Institution in Tallahassee, Florida, to a cushier minimum security Federal Prison Camp Bryan - better known as 'Club Fed' in Bryan, Texas and reportedly granted preferential treatment after she stated for the record that she did not remember anything submitted for Epstein's 50th birthday book by Trump.

During today's hearing, Senator Reed asked Blanche why he was sent to interview Ms. Maxwell. The Acting Attorney General incredulously responded: "He didn't send me. I went. What, what do you mean? Do you think President Trump called and asked me to go interview a witness in federal prison. Honestly?"

"Yes, I do, frankly," Reed flatly responded. "Because you know why? Because the deal was in. He needed somebody he could rely upon to talk to her and find out what would she say if she was asked about Jeffrey Epstein, and you were the perfect choice. And you went down there and suddenly, shazam! She's out of what is a more confining situation… A much more relaxed federal prison."

Full Transcript:

REED: Thank you, Mr. Chairman. Mr. Blache, how many taxpayer returns were leaked by the IRS contractor in the 2020 breach?

AG BLANCHE: Um, how many taxpayers, excuse me?

REED: How many taxpayers' returns were leaked by the IRS contractor in the 2020 breach?

BLANCHE: I don't know the exact amount, but a lot.

REED: 405,427. One of them was Donald Trump. correct?

One of them was Donald Trump, correct?

BLANCHE: One of them was Donald Trump and his family or others, correct.

REED: And Donald Trump was president at the time?

BLANCHE: Correct.

REED: So it was his IRS department that allowed this breach of privacy, correct?

BLANCHE: It was a criminal who worked in the IRS, yes.

REED: Well, he was hired under Trump's Administration. This is one of the Trump…

BLANCHE: Well, there was a criminal breach that led to this. Yes.

REED: How many of these 400,000 people have received monetary reimbursement for the breach?

BLANCHE: I don't think any have, including the president.

REED: No, they haven't. But you've authorized the president… you agree that the president should have reimbursement, correct?

BLANCHE: Well, we settled the case. No, there's no reimbursement to President Trump.

REED: That's interesting. So you're going to assure us that President Trump and his family will get no proceeds from this?

BLANCHE: Correct. He will not.

REED: He will not get -- his family will not get?

BLANCHE: Correct.

REED: And who will direct the disposition of these funds? Who gets the money?

BLANCHE: From the victims fund? There will be a commission of five individuals that will be set up and they will take in requests and claims and decide whether to do anything from…

REED: Who will name the commissioners?

BLANCHE: I will. The Attorney General, whoever the Attorney general is.

REED: The Attorney General. Okay.

BLANCHE: Sorry, just to correct, and one of them will be done in consultation with leadership of this body.

REED: Consultation. Well, that's good. But when he first announced this suit on January 30th, he said, 'I think what we'll do is something for charity, where I'll give the money to charity. I'm talking about the American Cancer Society. I would say established and respected charities.' Will you fulfill the president's wish that it goes to respected charities?

BLANCHE: I'm aware that he put that in or said that, but that's not ultimately what the settlement calls for.

REED: Well, the settlement was negotiated between his lawyers and the Department of Justice, correct? So his lawyers did not urge that they adopt the president's vision of giving it to a respectable charity?

BLANCHE: I am confident his lawyers urged the president's desires. Obviously, there's not a charity.

REED: The order that you signed yesterday states that the government pay their settlement if the Secretary of Treasury has certified the payment, is that correct?

BLANCHE: Correct.

REED: Is it a coincidence that the general counsel of the Department of Treasury resigned yesterday?

BLANCHE: I, I don't know if it's a coincidence.

REED: Have you looked or checked?

BLANCHE: Have I checked? I've not. As to why he resigned?

REED: It just seems to be very coincidental that a high ranking member of the Department of Treasury, who is Senate-confirmed, would resign the day that the Treasury Department was required essentially to certify these payments.

BLANCHE: Well, I believe the IRS signed the settlement agreement as well, um, but yes, but I, I, I don't, I can't speak to why he resigned, Senator.

REED: Well, this all seems to be an obvious abuse of power by the Department of Justice, by the President. He negotiated essentially with himself. You're his appointee. The IRS are full of his appointees. He's the plaintiff. And the American people, I don't think are surprised that suddenly all of this money is going to his friends or people in his orbit. Will you ensure that none of this money goes to anyone convicted on the January 6th attack on the Congress?

BLANCHE: Well, the commissioners will determine who is eligible to receive the money.

REED: Who are the commissioners?

BLANCHE: They're not named yet.

REED: Who will name them?

BLANCHE: I will, or the Attorney General will. If it's not me.

REED: So, with the suggestion of the President of the United States?

BLANCHE: Excuse me?

REED: With the suggestion of the President of the United States? Your boss.

BLANCHE: I do not make suggestions.

REED: No, no. He will make suggestions to you.

BLANCHE: I had, I, I have no idea if we will or not. I, I really don't. I have no idea if he will or not.

REED: I would be shocked if he didn't tell you exactly who to put on, and I'd be more shocked if you did not put them on. This is a travesty of the law in the United States and the Constitution.

You had an opportunity to go down and talk to Ghislaine Maxwell. And then a few days later, she was transferred from a high security prison to a very comfortable…

BLANCHE: It's just not true. She was not in the highest security prison. She was transferred from a low security prison to a low security prison. I mean, you're looking at me like that's… uh… that's verifiable.

REED: Well, I don't think at the other prison she had her own room. She had access to a private shower. She could have pet therapy and…

BLANCHE: I don't know if any of that is true. I'm not disagreeing with you.

REED: It is true, and you should know it, Mr. Attorney General.

BLANCHE: I should know that?

REED: You should know.

BLANCHE: Whether an inmate has access to her own shower?

REED: No, no, this is a person of extra special interest to the President of the United States. He's known her. Why did he send you down to talk to her?

BLANCHE: He didn't send me. I went. What, what do you mean? Do you think President Trump called and asked me to go interview a witness in federal prison. Honestly?

REED: Yes, I do, frankly, because you know why? Because the deal was in. He needed somebody who he could rely upon to talk to her and say, what would she say if she was asked about Jeffrey Epstein? And you were the perfect choice. And you went down there and suddenly, shazam, she's out of what was a more confining situation into a much more relaxed federal prison.

BLANCHE: Every word that I asked her is recorded and available to you to review. If there's criticisms of the questions that I asked her, go ahead and make them, but he did, the President did not have anything to do with my choice to go interview Ms. Maxwell. If I wouldn't have went and a career would've went, you would've said, why didn't you go yourself? Just like you expect me to know whether she has access to her own shower, so I did go.

REED: You should. Everyone in the United States who reads the newspapers knows that. I guess you don't, you know, read things like that. You know, this, this whole hearing, I think, is exposing something, which is to me is very frightening. You're a very gifted lawyer. But from my perspective, you have very little faith to the Constitution and the people of America and you're the president's consigliere.

BLANCHE: Your perspective is completely wrong, Senator, respectfully…

REED: Well, I think the facts will prove me right. Thank you.

• Print
• Email
• Share
• Tweet