Blanche nomination faces Senate risk over IRS settlement concerns

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Blanche nomination faces Senate risk

Highlights

Cornyn canceled a second meeting with Blanche and threatens a committee vote block over DOJ’s lack of written clarification on the IRS settlement terms.
Senate Judiciary Committee Republicans hold a 12-10 majority, so if either Cornyn or Tillis votes no, Blanche's nomination cannot advance to the full Senate.
Cornyn says the disputed tax settlement provision could shield Trump from IRS audits, demanding DOJ amend language before Thursday's panel vote as time runs out.

Committee vote hinges on settlement language

As first reported by CNBC, Cornyn cancelled a second meeting with Blanche after saying the Department of Justice did not answer his demands for written clarification on settlement terms tied to Trump's lawsuit against the IRS.

Cornyn says the disputed provision effectively shields Trump and others from IRS audits and enforcement actions related to tax returns filed before the settlement. He says Blanche needs his vote to move out of the Senate Judiciary Committee, where Republicans hold a 12-10 majority and Democrats are expected to oppose the nomination.

Cornyn says he is not prepared to vote yes, and adds that Sen. Thom Tillis is largely aligned with his position. If either Republican votes against Blanche, the nomination cannot advance to the full Senate.

The panel is set to vote Thursday, and Cornyn says Chairman Chuck Grassley told him by Wednesday afternoon he needed to know whether the committee could proceed as planned. Cornyn says there is still limited time for the department to address his concerns.

Political and legal stakes widen

The settlement at issue resolves Trump's lawsuit against the IRS over the illegal disclosure of his tax records by an agency contractor. Cornyn says he wants the DOJ to amend the release in writing to match assurances Blanche gave during his confirmation hearing, specifically that the protections do not improperly block future IRS oversight beyond the scope described.

A DOJ official says in a statement to CNBC that the department sent a written proposal to Cornyn's staff following discussions with the committee and the senator's office. Cornyn, however, says he has not seen any writing that responds to his request.

The standoff carries added political weight because both Cornyn and Tillis are leaving the Senate in January. Cornyn lost a Republican primary runoff in May to Texas Attorney General Ken Paxton, who was endorsed by Trump, while Tillis is retiring at the end of his term.

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