Senator Coons presses acting Attorney General Blanche on “appalling” $1.8 billion slush fund

Secures commitment from Blanche to release quarterly payout reports; highlights possible taxpayer-funded payments to Trump family, insurrectionists

WASHINGTON - U.S. Senator Chris Coons (D-Del.), a senior member of the Senate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies, pressed acting Attorney General Todd Blanche today on whether President Trump's family, campaign donors, and those convicted of assaulting Capitol Police officers during the January 6^th riot could receive taxpayer-funded payouts from a nearly $2 billion settlement slush fund tied to President Trump's lawsuit against the IRS.

Senator Coons pressed Blanche on who could benefit from the newly created $1.776 billion "Anti-Weaponization Fund," established as part of President Trump's settlement with the IRS and Treasury Department over the leak of his tax returns. While the Justice Department has said President Trump, his sons, and the Trump Organization will receive no monetary payment, Senator Coons pushed Blanche to commit that none of President Trump's family would receive a direct payout from the fund.

Senator Coons also pressed Blanche on whether any money from the fund could go to President Trump's campaign donors. Blanche declined to make that commitment, saying, "When you say campaign donors, they are not excluded from seeking compensation."

"During Police Week, I heard from a number of law enforcement friends who found it appalling that there was the possibility that folks like the Oath Keepers and the Proud Boys, who had assaulted Capitol Police officers, could receive multimillion-dollar payouts from this fund," Senator Coons continued. "Will you commit that no one who has been convicted of assaulting a police officer will receive a payout from this fund?"

Blanche responded, "Anybody can apply. The commissioners will set rules, I'm sure. That's not for me to set, that's for the commissioners. And whether an individual, an Oath Keeper, as you just mentioned, applies for compensation, anybody in this country can apply."

Senator Coons also pushed Blanche about the quarterly reports of payouts required by the settlement. In his announcement of the settlement, Blanche said that the reports would be public, but the settlement itself said they would be confidential. Under questioning, Blanche promised to release the reports as fully as possible.

Additionally, Senator Coons questioned Blanche on the Department of Justice's budget request, including support for victims of child abuse, the department's commitment to protecting American innovation amid concerns over intellectual property theft from China, and bipartisan efforts to reform federal supervision requirements.

A video of Senator Coons' questioning is available here.

A transcript of Senator Coons' questioning is available below:

Senator Coons: Thank you, Chairman Moran, Ranking Member Van Hollen. Thank you, acting Attorney General Blanche, for appearing before us today. I want to talk about some areas where I think we're making progress and we can work together and then raise some real concerns I have.

I do think it's worth recognizing the hard work of the men and women of the department and the progress you're making on combatting fentanyl and violent crime. I've long been involved in criminal justice reform, talked with and worked with your predecessor on this. I was pleased to see the president's message during Second Chance Month, where he said he wants to ensure those who take responsibility and seek to rebuild their lives have a chance to succeed.

Senator Lee and I have a bill called the Safer Supervision Act that's co-sponsored by Senators Tillis and Wicker, Cramer and Lankford. It's got strong law enforcement and conservative support, and it fits squarely in that framework. Currently, federal supervision is imposed in nearly every case, leading to badly overworked federal probation officers who then can't properly supervise those who actually most need it. There's more than 120,000 people on average per year being supervised, and this bill would help ensure courts are more thoughtful - more analytic - when deciding when to impose supervision.

Is this a piece of legislation you can support?

Blanche: So, what you just said I very much agree with. So, without looking at every word of the legislation, there's no disagreement from me on a word you just uttered.

Senator Coons: Well, thank you. I'd like to work with you on that.

Blanche: Yes. I look forward to that.

Senator Coons: Let me raise two questions. I've been gravely concerned about IP theft, especially from China, the whole time I've served. I was struck that the department's proposed budget cuts the funds for IP enforcement. Why? And is the department under your leadership committed to protecting American innovation?

Blanche: Very committed, and while you're calling it a cut, senator, I would say that it's a major focus of -

Senator Coons: It's a lack of an increase?

Blanche: Well, no, no, I don't mean lack of an increase. I mean that we're focused on it at the U.S. Attorney's Office level, so when we take money and spend it around the U.S. Attorney's offices, it's baked into that big number. Rest assured, every U.S. Attorney's office, all 93 of them, are focused on the threats that we have from there, and so we're trying to spend our money more wisely.

Senator Coons: Chair Collins raised a concern about the Violence Against Women Act funds. Let me raise a concern about the Victims of Child Abuse Act programs. Senator Roy Blunt and I worked to reauthorize this program. I've long been actively engaged with it. I've seen how children's advocacy centers in Delaware make a critical difference, bringing together law enforcement, medical, and mental health professionals to do child abuse investigations in a child-centered way to make sure children are not revictimized.

The number of victims served by these centers has increased fourfold over 25 years. Why are you proposing cutting this program?

Blanche: So, we have asked for $41 million for that program, and I agree with you, and I want to work with you to make sure that we're spending that $41 million where we should. I agree with you, it's extraordinarily important and has had a lot of success over the past 15-20 years as it's been up and running.

Senator Coons: Thank you. Let me return to the line of questioning from the ranking member, Senator Van Hollen, that I strongly agree with. I'm just looking at the settlement agreement in Trump v. IRS, and I just want to make sure I heard you properly when you responded previously.

Your announcement said that the fund will send you quarterly reports. Will you commit to making these reports fully public so Americans know who's getting taxpayer dollars out of the settlement fund? This says they'll be confidential. This is Section 4, Part E of the settlement agreement.

Blanche: So - the reason why I want to be careful in my answer is because there's obviously laws that exist around privacy that may prevent some of the information that the commission takes in from being fully public. Beyond that, there will be full transparency, and I commit to you that beyond the applicable laws that exist around privacy and privileges and whatnot, but as far as being transparent and having those quarterly reports released, yes.

Senator Coons: Thank you. You referenced a previous case, I think it was Keepseagle v. Vilsack, under the previous administration. Did that case involve a president suing his own government and then settling that case before it could be reviewed or approved by a judge?

Blanche: So, no. Neither does the commission.

Senator Coons: No, it did not. And so when you suggested that they're nearly identical, they're not identical. I think there's a critical difference here: President Trump is the first president to sue his own government and then direct his chosen acting attorney general to reach this kind of settlement. Will you commit that none of President Trump's family will receive a direct payout from this fund?

Blanche: Yes, but what you just said is not true. I mean - if I can correct that - the president did not direct me to do anything. And secondly, when we said that the structure of the commission is similar to Keepseagle, that's true. It wasn't - the underlying case is not the same, the structure of the commission is the same as the Keepseagle commission.

Senator Coons: Has it ever happened that a sitting president sued his own government for $10 billion and then directed the settlement of the case and the establishment of a payout fund?

Blanche: Not that I'm aware, but there are a lot of things that President Trump's the first of. No president had been indicted one, two, three, four, five, six, seven, eight times either.

Senator Coons: Correct. No president's been indicted. And will you commit that none of this money will go to President Trump's campaign donors?

Blanche: I am not committing to anything beyond the settlement agreement itself. When you say campaign donors, they are not excluded from seeking compensation if they were weaponized.

Senator Coons: Last question, during Police Week, I heard from a number of law enforcement friends who found it appalling that there was the possibility that folks like the Oath Keepers and the Proud Boys, who had assaulted Capitol Police officers, could receive multimillion-dollar payouts from this fund. Will you commit that no one who has been convicted of assaulting a police officer will receive a payout from this fund?

Blanche: So, I share the concerns that apparently members of law enforcement gave to you last week, although none of this was announced last week, so that's surprising.

Senator Coons: They had heard rumors there would be a settlement fund.

Blanche: Okay, but anybody can apply. The commissioners will set rules, I'm sure. That's not for me to set, that's for the commissioners, and whether an individual - an Oath Keeper, as you just mentioned - applies for compensation, anybody in this country can apply.

Senator Coons: Well, we'll be watching this very closely as this goes forward. I don't think the settlement fund should be set up this way or for these purposes. I appreciate your answers today. Thank you, Mr. Chairman.

Blanche: Thank you.