Congress

Senate Democrats circulating memo alleging Bessent tax dodges

Published

2 years ago

January 16, 2025

Senate Democrats are circulating a memo claiming that President-elect Donald Trump’s nominee for Treasury secretary, Scott Bessent, improperly claimed nearly $2 million in tax losses and owes nearly $1 million in taxes related to his hedge fund — providing ready ammunition for them as Bessent goes before the Finance Committee on Thursday.

The memo obtained by Blue Light News, which was prepared by Finance Committee staff under ranking member Ron Wyden (D-Ore.), alleges Bessent should have paid $910,182 in taxes for income he made through his hedge fund, the Key Square Group, from 2021 through 2023. Bessent was able to avoid that income because he claimed he was a “limited partner” not making decisions for Key Square, the memo says.

Democratic staff on the Finance Committee are arguing that Bessent was clearly actively engaged in decisions for the fund.

The memo also highlights losses Bessent claimed from income related to All Seasons Press, a conservative book publishing house that has minted books from authors including former Trump aide Peter Navarro, as well as a glowing biography of conservative pundit Tucker Carlson. The memo argues that Bessent didn’t properly substantiate $1,939,296 in losses, citing ASP records indicating that Bessent wasn’t actively involved in the publishing house’s businesses.

A spokesperson for the Trump transition called the claims “meritless.”

“Scott Bessent has paid his taxes. After providing thousands of pages of records through an exhaustive process, neither Senator Wyden nor his staff are able to provide any evidence that Scott violated the Internal Revenue Code,” the spokesperson said.

“Instead, they have resorted to a subjective interpretation of the tax code, including taking positions that are contrary to the to the views of the broad majority of tax professionals, accountants and lawyers, in an effort to mislead the public. “

The memo is sure to tee up a barrage of questions from Finance Committee Democrats about Bessent’s taxes at his nomination hearing Thursday. And the memo will allow Wyden to portray Bessent as out of touch with the Treasury Department and IRS that he would lead, which under President Joe Biden’s administration have been laser-focused on closing tax dodges used by the ultra-wealthy.

It’s unlikely, though, to put a dent in his support from Republicans, who have quickly coalesced behind the longtime hedge fund manager, or endanger Bessent’s ultimate path to confirmation — especially with Senate Finance Chair Mike Crapo (R-Idaho) pledging to move his nomination quickly.

“Mr. Bessent has followed the law and provided thousands of pages of documentation as part of the committee’s rigorous vetting process,” said Mandi Critchfield, Crapo’s spokesperson, in response to the memo.

In addition to potential problems with his hedge fund income and his ASP investment, the memo also called out a $500,000 deduction Bessent took on his 2023 returns for “bad debt.” The memo argues Bessent provided scant explanation to prove the deduction wasn’t in fact a gift or a personal loan.

Democratic staff are also pointing out that Bessent likely used a work-around to circumvent a $10,000 cap on state and local tax deductions, claiming $40,000 in such write-offs for a cooperative he had an investment in.

In several of the instances, Democratic staff suggested that Bessent amend his tax returns, but he declined to do so, according to the memo. In one case, Bessent said he would consider amending his returns if tax law verdicts relevant to his “limited partnership” status in his hedge fund were brought before higher courts.

Congress

Scalise will kick off August campaign sprint in marquee Nebraska House race

Published

5 hours ago

July 31, 2026

Blue Light Newsroom

House Majority Leader Steve Scalise is zeroing in on one of House Republicans’ biggest contests — a purple district in Nebraska — when he starts his recess campaign sprint.

Scalise will travel to Nebraska’s 2nd Congressional District in the Omaha area for an event with Republican Brinker Harding in the coming days, according to a person with direct knowledge of the matter granted anonymity to share plans not yet made public. Republicans are digging in to defend the seat, which Kamala Harris won in the 2024 presidential race and is among Democrats’ best pick up opportunities this fall as they seek to flip the House.

Harding is running against Democratic consultant Denise Powell to replace retiring GOP Rep. Don Bacon. Bacon, a moderate-leaning Republican, flipped the Omaha district red in 2016.

After Nebraska, Scalise is planning to travel across the country throughout August, including to defend GOP incumbents Mariannette Miller-Meeks’ and Zach Nunn’s key battleground seats in Iowa’s 1st and 3rd Congressional Districts and Derrick Van Orden in Wisconsin’s 3rd Congressional District.

He’ll boost candidates working to flip blue districts like Laurie Buckhout in North Carolina’s 1st Congressional District, Derek Merrin in Ohio’s 9th Congressional District and Mike LiPetri in New York’s 3rd Congressional District.

Scalise also plans to travel to Michigan, Colorado, South Carolina and Texas for campaign events over the August recess.

Congress

Trump needles Cornyn as Blanche remains blocked

Published

9 hours ago

July 31, 2026

Blue Light Newsroom

President Donald Trump goaded John Cornyn on social media Friday morning, accusing the Texas senator of withholding his vote on Todd Blanche’s attorney general nomination in retaliation for Trump’s central role in his political demise.

Cornyn, who lost his May primary to Texas’ scandal-ridden attorney general, the Trump-endorsed Ken Paxton, has threatened to block Blanche’s nomination in the Senate Judiciary Committee until the White House promises to permanently shelve its $1.8 billion “anti-weaponization fund” in writing — something Trump appears unwilling to do.

“John Cornyn never had a problem with the so called “Fund,” which will not benefit me, but rather the great American Patriots who were hunted down like dogs and whose lives were unfairly and illegally destroyed by the Crooked Joe Biden Administration, until after I decided to Endorse and Support his Republican Primary opponent in Texas, who easily won the Nomination for the United States Senate,” Trump wrote on Truth Social.

Several Republicans bristled at the fund, which could have been deployed to compensate Americans who faced charges after the Jan. 6 Capitol riot and which gives the president and his family audit immunity over taxes. At his July confirmation hearing, Blanche said that the fund, part of a settlement the president reached with the IRS, was defunct. But the administration has been “reluctant to change” the text of the settlement, Cornyn told reporters Thursday.

Trump signaled his continued support for the Jan 6 rioters on Friday.

“I will always feel that these victims of government abuse should be paid back for what they were forced to endure, their lives have been ruined!” he wrote. “Millions of people agree with me, as was proven in my landslide Presidential win, where this was a major subject of debate, and so did John Cornyn, until he lost his Election to an opponent that I Endorsed.”

On Thursday, the president suggested that he could punt a Senate vote on Blanche until after Cornyn — and Sen. Thom Tillis (R-N.C.) — leaves the chamber at the end of the year. Cornyn, however, suggested on social media that there are other Republican senators with concerns about the fund.

“After the midterms, who knows who’s going to be the next United States senator from North Carolina or Texas?” Cornyn told reporters.

Congress

Capitol agenda: The Senate’s fly-out agenda takes shape

Published

10 hours ago

July 31, 2026

Blue Light Newsroom

Senate Republicans are prepping a jam-packed — if somewhat optimistic — agenda for their final week before summer recess.

Majority Leader John Thune wants to move stopgap funding through Dec. 11, bipartisan Russia sanctions legislation and a bloc of nominees — perhaps including attorney general pick Todd Blanche.

He’s also under pressure from President Donald Trump, administration officials and many of his GOP colleagues to adopt a budget resolution — the first step in unlocking another party-line spending bill.

Leaders are prioritizing the stopgap, though. Appropriations Chair Susan Collins (R-Maine) expects continuing resolution text to be unveiled later today, she told reporters Thursday, and an initial vote is expected Monday evening.

Still TBD: Collins wants to use the funding patch to block the Trump administration from putting political appointees in charge of approving grants — a demand Democratic senators are also making.

The decision is in Thune’s hands. He acknowledged a “handful of issues” are still under consideration with the CR, and said he’s “hoping both sides can come together and figure” them out.

As for the sanctions bill, leaders of both parties are still trying to work out a deal to fast-track the legislation amid concerns from some Democrats and Sen. Rand Paul (R-Ky.) that it gives Trump too much tariff power.

In addition to the nominees package, Thune also hasn’t ruled out an initial vote on the landmark cryptocurrency bill both parties have spent months negotiating or teeing up a bipartisan college sports overhaul now in final stages of talks.

But the big question is whether Republicans can take a major step toward another reconciliation bill by advancing a budget resolution.

Thune met Thursday with Budget Chair Ron Johnson (R-Wis.), who said he was “optimistic in terms of how things are kind of coming together.”

Republicans anticipate giving a number of Senate committees instructions for the bill, setting up a lengthy and politically painful process ahead of adoption despite pushes for urgency from the White House.

Trump’s chief of staff, Susie Wiles, was the latest official to head to Capitol Hill to try and light a fire under top Republicans. But GOP senators don’t necessarily see the urgency.

“The hard part is the president wants to be able to move fast, like an executive can move, and we’re a legislative branch,” said Sen. James Lankford (R-Okla.). “It doesn’t move that fast.”

What else we’re watching:

— BLANCHE TEETERING: Todd Blanche’s nomination as attorney general isn’t dead yet. But it’s certainly on life support. The acting AG met with Cornyn and Tillis Thursday at NRSC headquarters, and one person familiar with the discussion said the group was “working collaboratively now.” But it would now be difficult to confirm him before August recess under Senate rules.

— FARM BILL TEXT: Senate Agriculture Chair John Boozman said his farm bill legislative text — originally expected Thursday — could come Friday or Saturday. The bill, which is expected to include language allowing year-round E15 sales and a potential compromise on postponing GOP-led cuts to the Supplemental Nutrition Assistance Program, is set to be marked up Thursday.

Jordain Carney and Grace Yarrow contributed to this report.