The investigative outlet ProPublica revealed Monday that Kristi Noem secretly took a personal cut of funds she raised for a nonprofit that boosted her political career—and then did not disclose the income when President Donald Trump selected her to serve as head of the Department of Homeland Security.
ProPublica reported that in 2023, while Noem was governor of South Dakota, the nonprofit group American Resolve Policy Fund "routed funds to a personal company of Noem's that had recently been established in Delaware." The company is called Ashwood Strategies, and it was registered in June 2023.
"The payment totaled $80,000 that year, a significant boost to her roughly $130,000 government salary," according to the outlet. "Since the nonprofit is a so-called dark money group—one that's not required to disclose the names of its donors—the original source of the money remains unknown."
Experts told ProPublica that the arrangement and Noem's failure to disclose the income were unusual at best and possibly unlawful.
"If donors to these nonprofits are not just holding the keys to an elected official's political future but also literally providing them with their income, that's new and disturbing," Daniel Weiner, a former Federal Election Commission attorney who now works at the Brennan Center for Justice, told ProPublica.
Noem's lawyers denied that she violated the law but did not reply to ProPublica's questions about whether the Office of Government Ethics was aware of the $80,000 payment.
Unlike many Trump administration officials, Noem is not a billionaire. But "while she is among the least wealthy members of Trump's Cabinet, her personal spending habits have attracted notice," ProPublica observed, noting that she was "photographed wearing a gold Rolex Cosmograph Daytona watch that costs nearly $50,000 as she toured the Salvadoran prison where her agency is sending immigrants."
"In April, after her purse was stolen at a Washington, D.C. restaurant, it emerged she was carrying $3,000 in cash, which an official said was for 'dinner, activities, and Easter gifts,'" the outlet continued. "She was criticized for using taxpayer money as governor to pay for expenses related to trips to Paris, to Canada for bear hunting, and to Houston to have dental work done. At the time, Noem denied misusing public funds."
Political scientist Norman Ornstein wrote Monday that it was "no wonder [Attorney General] Pam Bondi gutted the public integrity section of DOJ."
"To protect utterly corrupt monsters like Kristi Noem," he added.