Noem kept $80,000 ‘dark money’ payment off federal disclosure forms
A recent report by ProPublica revealed that Kristi Noem, Secretary of Homeland Security, excluded an $80,000 payment from a dark money group known as American Resolve from her federal financial disclosure forms. The payment was made to Ashwood Strategies, a company owned by Noem, as a 10% fee on the $800,000 she raised for the organization in 2023. This omission raises questions about Noem’s compliance with government transparency laws, especially given South Dakota’s lenient disclosure requirements. Although Noem’s lawyer asserted that she followed all legal guidelines, previous scrutiny indicated potential misuse of taxpayer funds during her tenure as governor, involving substantial travel expenses, including personal trips. The situation has garnered attention and raised concerns about ethical standards in her office.
Kristi Noem kept $80,000 ‘dark money’ payment off federal disclosure forms
Homeland Security Secretary Kristi Noem excluded an $80,000 payment from a dark money group in her government disclosure forms, according to a new report.
ProPublica reported Monday morning that American Resolve, a dark money group that has backed and publicized Noem on a national stage, paid Ashwood Strategies, a limited liability company owned by Noem, $80,000 in 2023. American Resolve described the payment in its tax forms as a 10% fee on the $800,000 she raised for the organization that year.
Both Ashwood Strategies and American Resolve were incorporated in Delaware on June 22, 2023. The former shares the name of one of Noem’s horses, according to ProPublica, while the latter’s political action committee openly touts putting “Kristi and her team on the ground in key races across America” on its website.
South Dakota’s loose disclosure laws for government officials allowed Noem’s formation of Ashwood Strategies to go unnoticed until her Senate confirmation process earlier this year.
On her government disclosure forms, Noem said Ashwood Strategies was involved with “personal activities” beyond her government position and had received a $140,000 advance for her 2024 book, No Going Back. However, she did not list the payment Ashwood Strategies received from American Resolve.
Both the White House and the Department of Homeland Security referred questions about ProPublica’s report to Noem’s personal lawyer, Trevor Stanley.
“Then-Governor Noem fully complied with the letter and the spirit of the law,” he said in a statement, claiming that the Office of Government Ethics “analyzed and cleared her financial information in regards to this entity.”
“Secretary Noem fully disclosed all of her income on public documents that are readily available,” Stanley added when asked if the OGE was aware of the $80,000 payment and why Noem excluded it from her disclosure forms.
Noem has previously been accused of using taxpayer funds to pay for personal travel. An analysis from the Associated Press in March found that South Dakota taxpayers covered more than $600,000 in Noem’s travel in the six years she served as governor, including extensive 2024 campaign travel in support of President Donald Trump and a bear hunting trip to Canada for her niece. Noem has denied all allegations that she misused taxpayer funds.
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