Kristi Noem secretly cuts political donations – Propublica

Tax records show that in 2023, when Kristi Noem was governor of South Dakota, she supplemented her income by secretly accepting cuts from the money she raised for nonprofits that promoted her political career.

Experts say it is a very unusual arrangement, with the nonprofit offering routes to Noem’s individual company, which was recently launched in Delaware. The total payment for that year was $80,000, which greatly increased her government salary of about $130,000. Since the nonprofit is a so-called dark currency group (the currency group that does not need to disclose the names of its donors), the original source of this money remains unknown.

Norm then failed to disclose the $80,000 payment to the public. After President Donald Trump chose Norm as Secretary of Homeland Security, she must provide detailed introduction to her assets and sources of income for 2023. She did not include revenue from the Dark Currency Group on her disclosure form, which experts say may have violated federal ethics requirements.

Experts told ProPublica that it was disturbing that Neum took away the money from political donors himself. In the filing, the group is a nonprofit called American Resolve Poldic Fund, describing $80,000 as a payment for fundraising. The group said Neum brought hundreds of thousands of dollars.

A politician is not outstanding in raising funds for nonprofits and other groups that promote their campaigns or agendas. What is unusual is that politicians keep some money for themselves, experts say.

“It’s new and disturbing if donors of these nonprofits not only hold the key to the political future of elected officials, but also provide them with income,” said Daniel Weiner, a former Federal Election Commission attorney.

ProPublica found details of payments in the form of an annual tax on the U.S. Resolution Policy Fund, part of a network of political groups that promotes Noem and its agenda. The nonprofit describes its mission as “a struggle to safeguard America for the next generation.” There is little evidence in the public sphere that the organization has done a lot. In its first year, its main expense was to pay Noem and pay some unspecified travel expenses. It also maintains a social media account dedicated to promoting Norm. It has 100 followers on X.

“The then-Governor Noem was fully abiding by the letter and spirit of the law,” said Noem’s attorney Trevor Stanley in a statement, and the Government Ethics Office provided disclosures to federal officials, “analyzing and clearing her financial information and clearing her financial information.” Stanley did not answer any follow-up questions about whether the Ethics Office knew about the $80,000 payment.

“Secretary Nome fully disclosed all her income in public documents, which are easily available,” Stanley added. Given that Nome did not report a $80,000 payment on her federal financial disclosure form, Stanley did not respond.

Norm spent two decades in the South Dakota government and the U.S. House of Representatives, raising the salary of civil servants before being appointed Secretary of Homeland Security to oversee immigration enforcement. Her husband, Bryon Noem, has two small insurance brokers in the state. He owns at least $2 million in assets between his company and real estate holdings, according to Norm’s filing.

Although she is one of the least wealthy members of Trump’s cabinet, her personal spending habits have attracted attention. Noem took a photo wearing a golden Rolex universe statue Daytona watch, when she visited the Salvadoran Paind, where her agency was sending immigrants. In April, she showed up $3,000 in cash after her purse was stolen at a restaurant in Washington, D.C., which one official said was “a dinner, event and Easter gift.” She has been criticized for using taxpayer money as governor to cover the cost of traveling with Paris, bear hunting in Canada and dental work in Houston. At the time, Neum denied abuse of public funds.

Noem’s personal company, an LLC called Ashwood Strategies, is known together with one of her horses. It was registered with the governor of South Dakota, Delaware at the beginning of its second term, around 1 p.m. on June 22, 2023. Four minutes later, the nonprofit U.S. Resolution Policy Fund was also established in Delaware.

According to its tax application, the U.S. resolves to raise $1.1 million in 2023. The organization reported that it had zero employees and what the money did was largely unclear.

In 2023, nonprofits spent only about $220,000 in war boxes, more than one-third went to Noem’s LLC. The rest is mainly used for administrative expenses and a travel budget of approximately $84,000. It is not clear who the group pays for the trip.

The nonprofit reported that it sent $80,000 in fundraising fees to Noem’s LLC to pay $800,000, cutting 10%. The tax rate for professional fundraising activities that also raise funds for the group is 7% lower.

In the following years, the United States was determined to maintain a low public image. In March, it purchased a Facebook ad that struck local news outlets in South Dakota that has been reporting Norm’s use of a government credit card. Noem’s lawyers did not answer questions about whether the group would pay more after 2023, a tax filing in the past year.

At least in public, nonprofits have an associated political committee with the US determined PAC, which is more active. Its website says the PAC was created to put “Christy and his team in a pissle of key games across the United States.” Last year, Noem participated in a PAC-sponsored event to support Republican candidates.

The U.S. determined treasurer forwarded the issue to Norm’s lawyer. Noem’s attorney said in a statement that she “has not established, funded, maintained or controlled the U.S. Resolution Fund. She is only a supplier to nonprofits.”

Although Noem failed to report fundraising for Ashwood strategy received in federal financial disclosures, she did provide some other details. She described the LLC as an “individual activity beyond my formal governor’s ability” and noted that her book “Not Looking Back” received a $140,000 advance. She reported that the company also has a bank account that contains between $100,001 and $250,000 and at least $50,000 of “livestock and equipment.”

The fact that Ashwood strategy is Noem’s company only emerges through her confirmation process of Trump’s cabinet post. South Dakota has few rules on disclosure of elected officials, and Nome has not previously disclosed that she created a side job as governor.

According to Lee Schoenbeck, a senior Republican politician and attorney, Norm’s external income may have violated South Dakota laws. The law requires senior officials, including the governor, to devote their full-time full-time jobs to formal positions.

“The governor should never have a private business that the public does not know about,” Schoenbeck told ProPublica. “This is obviously inappropriate.”

Norm’s lawyers say South Dakota law allows her to earn income from nonprofits.