Trump appeals ruling on tax immunity, $1.8b 'anti-weaponization' fund as AG fate hangs in the balance

By BREANNE DEPPISCH, US SENIOR POLITICAL REPORTER Published: 22:45, 31 July 2026 | Updated: 22:54, 31 July 2026  President Donald Trump on Friday appealed a federal court ruling that blocked him from proceeding with a $10 billion lawsuit against the IRS to protect his own business dealings and create a controversial 'anti-weaponization fund' - an unexpected update that could tank the confirmation of his own attorney general nominee. Lawyers for the administration asked the US Court of Appeals for the 11th Circuit to reverse an order handed down by U.S. District Judge Kathleen Williams, who ruled in a blistering, 56-page order that Trump's IRS settlement attempt was brought by the administration in 'bad faith,' and was essentially a form of self-dealing aimed at manipulating the judicial process. In addition to halting the settlement from moving forward, Williams recommended the lawyers who represented Trump in the case be referred to the bar for potential disciplinary proceedings.  The lawsuit 'was brought for an improper purpose—to gain the imprimatur of judicial legitimacy for a 'settlement' that had no viable basis in law or fact,' Williams said in the order. The unexpected Friday afternoon appeal to the circuit court is an extraordinary twist from the Trump administration. It's also one that could ultimately tank the path forward for Trump's personal lawyer-turned-acting attorney general, Todd Blanche, who has struggled to win over the Republican votes needed for Senate confirmation as a direct result of the fund.  Blanche had acknowledged earlier this month that written changes would be needed in order to formally moot the IRS settlement and prevent Trump from theoretically reviving it at some point in the future. Blanche's admission threw a wrench into the confirmation process, touching off weeks of back-and-forth and negotiations with two Republican senators, John Cornyn of Texas and Thom Tillis of North Carolina, who said they would not vote to confirm Blanche until Trump agreed in writing to void both the IRS audit immunity and the anti-weaponization fund.  Acting Attorney General Todd Blanche appeared before the Senate Judiciary Committee earlier this month Trump and his then-personal lawyer, Todd Blanche, speak to the press outside the Manhattan Criminal Court in New York City That Trump appeared willing to gamble the fate of his attorney general nominee in order to keep alive a sweeping IRS settlement that would shield Trump and his family from tax audits offered a fresh glimpse into the president's motivations in his second White House term, where he has, at times, shown more of a brazenwillingness to use his office to settle personal scores.  In a post one day earlier on Truth Social, Trump said he had 'no objection to temporarily withdrawing Todd’s name' if the two outgoing Republican senators, John Cornyn of Texas and Thom Tillis of North Carolina, 'do not do the right thing' and vote to confirm him in  the Senate Judiciary Committee.   Trump said he would put Blanche's nomination back to the panel for a vote after the midterm elections. On Friday, Trump reneged on his earlier stance: He urged the committee to immediately confirm Blanche, and blasted Cornyn for holding up the process.  He also reiterated fresh support for the anti-weaponization fund and its would-be beneficiaries - including Jan. 6 US Capitol rioters Trump doubled down on hat position again in person, at meeting with Cabinet officials at Camp David. 'Well, it is dead,' Trump said of the anti-weaponization fund. 'But I wish it weren’t, to be honest with you,' he said. Cornyn suggested Thursday the concerns about Blanche's confirmation are shared by others in the chamber as well, noting on social media that  Trump 'is mistaken if he believes concerns about the provisions in his tax lawsuit settlement are limited to me and Senator Tillis.' The Justice Department did not respond to the Daily Mail's request for comment on negotiations with the Senate holdouts.