By Richard Cowan and Bhargav Acharya
July 30 (Reuters) - President Donald Trump indicated on Thursday that he could temporarily withdraw his nomination of Todd Blanche to serve as U.S. attorney general and then later re-nominate him after two senators from his own party who have been holding up the nomination leave office in early January.
"I have no objection to temporarily withdrawing Todd's name, if they do not do the right thing, and putting him back after Cornyn and Tillis are out of office,"
the Republican president said in a social media post, referring to Senators John Cornyn of Texas and Thom Tillis of North Carolina.
Blanche formerly served as Trump's personal lawyer and has stepped in as acting attorney general since Trump fired his appointee Pam Bondi in April. If Trump withdraws the nomination, Blanche could continue serving indefinitely as acting attorney general.
The two senators have been seeking written assurances from the Justice Department that a $1.8 billion "anti-weaponization fund" Trump sought would not be made operational. That fund could benefit Trump allies who say they were unfairly targeted in the past by the federal government for their involvement in the January 6, 2021, attack on the U.S. Capitol.
The senators also have objections to a deal that would prevent tax audits of Trump and his associates.
Cornyn said on Thursday that talks over Blanche's nomination were over, likely through the weekend, after Trump's remarks that he could withdraw the nomination.
"I don't discount the possibility that this is just part of a negotiating technique," Cornyn said of Trump's comment.
Both Cornyn and Tillis are not running for re-election and are due to leave office in early January, which gives them more latitude than other Republicans to defy Trump. But Cornyn said on social media that other senators also shared their concerns.
Blanche met with Republican Senator John Curtis of Utah to try to shore up support.
Cornyn told reporters earlier on Thursday that he was still waiting for the Justice Department to formalize assurances that it would not implement the fund.
"I don't know whether they think they can wait us out or we'll cave. But I can assure you we won't," Cornyn told reporters.
Trump has expressed support for federal payouts to supporters who he has portrayed as being targeted by a "weaponized" U.S. government under his Democratic predecessor Joe Biden.
But the "anti-weaponization" fund, crafted as part of a legal settlement between Trump and the Justice Department to resolve his $10 billion lawsuit against the IRS over allegedly mishandling his tax records, was put on hold amid fierce opposition from Republicans in Congress. Trump critics derided it as a slush fund to reward supporters with taxpayer money.
Trump last year gave executive clemency to his supporters who were prosecuted for their roles in the January 6 riot.
The president ousted Bondi over his frustrations with her performance, especially over the release of files relating to the late financier and sex offender Jeffrey Epstein. Trump also felt Bondi was not moving quickly enough to prosecute critics and adversaries whom he wanted to face criminal charges, according to sources.
(Reporting by Richard Cowan in Washington, Bhargav Acharya and Ryan Patrick Jones in Toronto; Editing by Andy Sullivan, Will Dunham and Susan Heavey)
