Sponsor Advertisement
DHS Secretary Kristi Noem Under Fire for Undisclosed Payment from Nonprofit

DHS Secretary Kristi Noem Under Fire for Undisclosed Payment from Nonprofit

DHS Secretary Kristi Noem faces scrutiny for failing to disclose an $80,000 payment from a dark money group linked to her private company during her Senate confirmation. Ethics concerns are mounting.

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.

Advertisement

The Flipside: Different Perspectives

Progressive View

Secretary Kristi Noem's undisclosed payment from American Resolve is a glaring example of the opacity that plagues our political system. The failure to report an $80,000 payment, especially when it stems from a dark money group, undermines public trust and highlights the need for stricter financial disclosure laws. This incident is not merely about one individual's oversight; it is indicative of a larger pattern of behavior that seeks to circumvent transparency.

It is incumbent upon public servants to maintain the highest ethical standards, particularly when they hold positions of significant power, such as leading the Department of Homeland Security. The fact that Noem's attorney asserts compliance with legal obligations does not absolve the ethical responsibility to disclose all sources of income, especially those that may present a conflict of interest.

Moreover, the establishment of Ashwood Strategies and its subsequent payment from American Resolve on the same day in Delaware, a state known for its lax disclosure requirements, raises further questions about the intent behind these actions. The progressive viewpoint emphasizes the necessity for comprehensive campaign finance reform, holding public officials accountable, and ensuring that all financial dealings are transparent to the electorate.

Conservative View

The recent media focus on DHS Secretary Kristi Noem's financial disclosures, or lack thereof, has been met with predictable sensationalism, yet it is essential to examine the facts with a clear and rational perspective. It is not uncommon for public officials to engage in private business dealings, and the creation of Ashwood Strategies, as well as the payment from American Resolve, must be viewed within the context of legality and ethical standards.

Noem's attorney, Trevor Stanley, has affirmed that all legal obligations have been met, and the Office of Government Ethics has cleared her financial information concerning Ashwood Strategies. This point cannot be overstated; an official ethics body has reviewed and approved the disclosures. Critics must acknowledge that unless there is evidence of actual wrongdoing, accusations remain speculative at best.

Furthermore, the issue of "dark money" in politics is not unique to one political party or individual. It is a systemic issue that requires comprehensive reform, rather than selective outrage aimed at a single entity or person. It is essential to maintain a balanced view and focus on policy over political theater. Secretary Noem's track record as governor, her commitment to conservative principles, and her dedication to the American people should not be overshadowed by what appears to be a procedural oversight, if that.

Common Ground

Despite differing perspectives on Secretary Kristi Noem's undisclosed payment, there is common ground in the belief that transparency is crucial for maintaining the integrity of public office. Both conservative and progressive viewpoints can agree that public trust is foundational to a functioning democracy. There is also a shared understanding that any systemic issues with dark money and financial disclosures in politics should be addressed through bipartisan efforts