Kristi Noem’s political career is under renewed scrutiny after tax records suggest she may have used nonprofit funds to boost her personal income. Before assuming her role to lead the Department of Homeland Security, Noem served as governor of South Dakota.
Experts say she received $80,000 from a nonprofit and failed to disclose the income on required financial reports.
Nonprofit funds sent to Noem’s personal company
According to a report by ProPublica, in 2023, American Resolve Policy Fund, a nonprofit, transferred $80,000 to a company owned by Noem, effectively giving her a boost on top of her $130,000 state salary. The group says its mission is to preserve America, but has spent most of its money on Noem and undisclosed travel.
Ties between Noem and nonprofit
Noem owns a company called Ashwood Strategies, registered in Delaware, the same state as the nonprofit that paid her, according to ProPublica. Records show both were established in 2023, just minutes apart, while Noem was serving as South Dakota’s governor.
That same year, American Resolve raised $1.1 million but reported no employees. Tax records show it spent about $220,000, including the money paid to Noem’s company, Ashwood Strategies, for fundraising. That payment represented a 10% cut of the funds raised. The group also spent about $84,000 on travel, though it’s unclear who benefited.
Ethical concerns surrounding failure to disclose money
Experts say the problem isn’t just the payment, but also that Noem failed to disclose it when she was selected by President Donald Trump to lead DHS. As part of that process, Noem was required to list her assets on a federal disclosure form. The $80,000, however, was left off.
Experts told ProPublica that it is not inherently unethical for an organization to help raise money for a politician. The concern arises only when those funds are used for personal gain rather than to support a political agenda as advertised.
Noem’s attorney, Trevor Stanley, said she followed all legal requirements both during her time as South Dakota governor and in the process of becoming secretary of the Department of Homeland Security. “Secretary Noem fully disclosed all of her income on public documents that are readily available,” Stanley said. However, according to ProPublica, that doesn’t address the $80,000 payment.
Additional questions regarding Noem’s spending
Noem drew public attention after wearing a gold Rolex, reportedly worth nearly $50,000, during a visit to El Salvador’s CECOT prison. Then, in April, reports surfaced that her purse, containing $3,000 in cash, was stolen. The Associated Press also reported that taxpayer dollars funded trips to Paris and Canada, which were tied to bear hunting rather than her official duties.
