"We are not moving forward with the fund," Blanche said on Tuesday.
"Period."
The fund emerged from a legal settlement between President Donald Trump and the Justice Department to resolve an unprecedented $US10 billion ($A14 billion) lawsuit against the IRS over the alleged mishandling of his tax records.
The agreement with Trump to bar future audits into his or his family's past tax records will remain in place, Blanche told lawmakers.
The fund was dropped as furious senators faced an impasse over a $US72 billion ($A100 billion) bill to fund immigration and border patrol operations.
Congressional leaders had questioned whether they could pass the bill if the fund was not killed, and a person familiar with the White House's thinking said Blanche's future hinged on his ability to address those concerns.
The $US1.776 billion ($A2.474 billion) fund was meant to pay people who said they had been the subject of government abuse, and Blanche angered senators in May when he would not commit to barring people who assaulted police officers during the January 6, 2021, Capitol riot from receiving funds.
White House officials spent much of Monday calling lawmakers to assure them there would be no payouts after the Republican revolt, said two sources familiar with the matter, speaking on the condition of anonymity.
That assurance had done little to quiet Republican demands ahead of Blanche's House subcommittee hearing on Tuesday afternoon, where lawmakers pressed for a definitive promise that the fund was dead.
The White House referred questions on Blanche's comments to the Justice Department, which did not immediately respond to a request for comment.
On Monday, the department said it would abide by a court order that temporarily paused the fund until June 12 but did not say what that meant for the fund permanently.
Trump broke his public silence on the fund's future on Tuesday afternoon, posting a link to a Substack titled, "The Truth the Media Won't Tell You About the Anti-Weaponisation Fund."
The post praised Trump for giving money to those who say they have been abused by the government and criticised the media and Democrats for calling it a slush fund.
