US Acting Attorney General Todd Blanche has issued a formal order terminating President Donald Trump's $US1.8 billion ($A2.6 billion) "anti-weaponisation fund" to compensate his political allies. The move follows weeks of negotiations with two Republican senators who were blocking his nomination to become attorney-general. A spokeswoman for Texas Senator John Cornyn, one of the senators holding up Blanche's nomination, confirmed the agreement late on Sunday. While Blanche has repeatedly said publicly that the fund was dead, the Justice Department had resisted formally confirming that in writing. The two sides have been negotiating for weeks, but Trump has said repeatedly during the talks that he thinks the fund should go forward.