DHS Secretary Kristi Noem is in the spotlight after a report disclosed her failure to report an $80,000 payment from American Resolve, a dark money group. This payment was a commission for fundraising efforts during her time as South Dakota governor. Tax records show the payment to Ashwood Strategies, a company owned by Noem, in 2023. The payment was not on Noem's federal disclosure forms, which were part of her Senate confirmation process. Instead, she listed Ashwood Strategies as a business for "personal activities." Noem also reported a $140,000 book advance but omitted the payment from American Resolve. Both American Resolve and Ashwood Strategies were incorporated in Delaware on the same day. Ashwood Strategies shares its name with one of Noem's horses, and American Resolve's PAC promotes her involvement in key races. The payment's existence came to light during Noem's federal ethics vetting. The White House and DHS did not comment on this issue, referring inquiries to Noem's attorney. Her attorney insists she complied with all legal obligations. This incident follows previous scrutiny over Noem's handling of taxpayer dollars, including travel expenses billed to South Dakota taxpayers.
During her confirmation, Noem reported Ashwood Strategies as a business for "personal activities" unrelated to her public role. In addition to this, she disclosed receiving a $140,000 advance for her upcoming book "No Going Back," but the transaction with American Resolve was conspicuously absent from the forms. Compounding the issue, both American Resolve and Ashwood Strategies were incorporated on June 22, 2023, in Delaware, a state known for its minimal disclosure requirements, as reported by the Washington Examiner.
Public reports have also noted that Ashwood Strategies shares its name with one of Noem's horses. Furthermore, American Resolve's affiliated political action committee has been actively promoting efforts to place "Kristi and her team on the ground in key races across America." The connection between these entities and Noem's financial benefit remained under the radar until her federal ethics vetting brought it to light.
Since South Dakota's financial disclosure rules are relatively lenient, the formation of Ashwood Strategies and its payment arrangement with American Resolve did not draw public attention at the time. However, the LLC's existence and its financial dealings only became public knowledge through ethics reviews and document requests tied to Noem's DHS confirmation earlier this year.
The White House and the DHS have declined to comment on the matter, referring all inquiries to Noem's personal attorney, Trevor Stanley. In a statement, Stanley asserted that Noem complied with all legal requirements. "Then-Governor Noem fully complied with the letter and the spirit of the law," he said, adding that the Office of Government Ethics "analyzed and cleared her financial information in regards to this entity." When pressed about the unreported $80,000, Stanley reiterated that "Secretary Noem fully disclosed all of her income on public documents that are readily available," without clarifying whether the Office of Government Ethics had been informed of the specific payment.
This controversy follows other instances of scrutiny regarding Noem's handling of taxpayer dollars. Earlier reports from the Associated Press disclosed that over $600,000 in travel expenses were billed to South Dakota taxpayers during her governorship. These trips included extensive 2024 campaign travel in support of President Donald Trump and a personal hunting trip in Canada. Noem has consistently denied any misconduct related to her travel or use of public funds. Nonetheless, the recent revelation of undisclosed income raises ethical questions, particularly given her current role as the head of a major federal agency. It also underscores the broader issues surrounding dark money groups and the transparency of public officials' private financial interests.
