PoliticsKristi Noem Caught in Controversy Over Secret $80K Payments From Political Donations
Kristi Noem came under fire after reports alleged she accepted $80K from a dark money group during her governorship without disclosing it on federal forms.
July 11 2025, Published 8:30 p.m. ET
Kristi Noem, the current head of the Department of Homeland Security, is facing scrutiny after a report alleged she accepted $80,000 from a dark money group linked to her political fundraising during her time as South Dakota (S.D.) governor.
A ProPublica report, citing tax records, said the payment went to her personal company, Ashwood Strategies, yet it was conspicuously absent from her federal financial disclosure forms, raising concerns over potential ethics violations.
Kristi Noem allegedly received $80K from American Resolve Policy Fund via her LLC.
During her time as governor, Noem discreetly funneled financial gains to her newly established Del.-based company, sharing its name with one of her horses. This shadowy arrangement saw the nonprofit group, American Resolve Policy Fund, send funds directly to Noem's LLC for fundraising efforts.
In 2023, while she still held the governor's mantle, Noem accepted the sizeable payment that significantly supplemented her approximately $130,000 government salary. As a dark money entity, American Resolve is not required to disclose its donors, leaving the origins of the $80,000 shrouded in mystery.
Experts believe it is deeply troubling for an elected official to profit directly from political donations. Daniel Weiner, a former Federal Election Commission attorney, stated, "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."
ProPublica uncovered this payment from American Resolve Policy Fund’s annual tax filing, which is part of a network championing Noem's political agenda. While the nonprofit claims to "fight to preserve America for the next generation," its activities have been called into question, particularly regarding the use of funds. In its inaugural year, notable expenditures included payments to Noem and unspecified travel costs, alongside maintaining social media accounts dedicated to her promotion. It reportedly has only 100 followers on X.
The payment was not included in Kristi Noem's federal financial disclosure forms.
Noem's attorney, Trevor Stanley, defended her conduct, claiming, "Then-Governor Noem fully complied with the letter and the spirit of the law."
He noted that the Office of Government Ethics analyzed and cleared her financial information concerning the LLC. When asked if this office was aware of the $80,000 payment, Stanley did not provide a clear answer.
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Critics questioned how the group’s donors may have directly financed Kristi Noem’s income.
Despite previous public service roles, Noem’s financial dealings have raised eyebrows. She was photographed wearing a gold Rolex Cosmograph Daytona worth nearly $50,000 during an official visit to a Salvadoran prison, and another incident revealed she carried $3,000 in cash after a theft at a D.C. restaurant. Critics have condemned her use of taxpayer money for personal trips abroad.
Registered shortly after Noem’s second term began, Ashwood Strategies received $80,000 as a fundraising fee for helping American Resolve raise $800,000 that year. The organization reported zero employees, and the purpose of its expenditures remains largely ambiguous.
Registered shortly after Noem's second term began, Ashwood Strategies received $80,000 as a fundraising fee for helping American Resolve raise $800,000 that year. The organization reported zero employees, and the purpose of its expenditures remains largely ambiguous.
American Resolve PAC, the affiliated political committee, has sought to bolster Noem's conservative credentials by sponsoring events across the country in support of Republican candidates. In response to queries regarding this financial state of affairs, Noem's lawyer claimed, "She did not establish, finance, maintain or control American Resolve Fund. She was simply a vendor for a non-profit entity."
Kristi Noem’s lawyer said she 'fully complied' with ethics rules.
While Noem reported some income from Ashwood Strategies, she failed to include the significant fundraising payment in her federal disclosures.
Unconventionally, she noted the LLC related to "personal activities outside my official gubernatorial capacity" and also reported receiving a $140,000 advance for her book titled No Going Back.
The controversy surrounding Noem's financial practices sparked debate in S.D., where laws mandate that top officials devote their full time to their official duties. "There's no way the governor is supposed to have a private side business that the public doesn't know about," commented Lee Schoenbeck, a seasoned Republican politician. "It would clearly not be appropriate."
Noem's lawyer maintained that state law permits her to accept income from the nonprofit, yet the unfolding story raises pressing ethical questions about transparency in political fundraising.
