The U.S. Department of the Treasury <a href="https://home.treasury.gov/news/press-releases/sb0470">announced</a> Thursday that the Internal Revenue Service (IRS) will revise Form 990 to increase transparency and curb misconduct within tax-exempt organizations. The move specifically targets fiscal sponsorship arrangements, government grants, and contracts—mechanisms critics argue have been exploited by &#8220;dark money&#8221; networks to operate without public scrutiny.
“We are ending the days of hiding fraud, abuse, and extremist activity behind complicated nonprofit arrangements,” said Treasury Secretary Scott Bessent. He warned that directors and officers of organizations misusing charitable structures would face increased &#8220;scrutiny, accountability, and liability under the law.&#8221;
The announcement comes amid intensifying investigations into prominent liberal networks like Tides and Arabella Advisors. The Washington Free Beacon <a href="https://freebeacon.com/democrats/same-game-different-name-radioactive-arabella-advisors-announces-rebrand-to-sunflower-services-as-prominent-donors-flee/">reported</a> in November 2025 that Arabella had rebranded its fiscal sponsorship arm as Sunflower Services “amid a series of high-profile investigations into its finances and billionaire Bill Gates&#8217;s decision to end a longstanding partnership with the organization.”
The Treasury’s focus on fiscal sponsorships—where a 501(c)(3) acts as an &#8220;umbrella&#8221; for projects without their own tax-exempt status—directly addresses concerns raised by the House Oversight Committee. Last month, Chairman James Comer (R-KY) said the Committee was “continuing to investigate reports the Sixteen Thirty Fund, Arabella Advisors (now operating as Sunflower Services), and others have worked to circumvent federal campaign finance disclosure requirements.”
Comer said his <a href="https://oversight.house.gov/release/comer-continues-to-investigate-dark-money-groups-efforts-to-evade-campaign-finance-laws/#:~:text=Comer%20Continues%20to%20Investigate%20Dark,Release%20Published%3A%20Mar%2020%2C%202026">letter</a> was “part of the House Oversight Committee’s larger effort to investigate powerful, dark money groups skirting campaign finance disclosure laws enforced by the Federal Election Commission (FEC) and the Department of Justice (DOJ) while obscuring the distinction between activities of legitimate journalists from campaign operatives. Online influencers invited to join the Chorus program reportedly receive up to $8,000 per month to amplify Democratic messaging online but must sign contracts enforcing strict secrecy and imposing limitations on the types of political content they can produce.”
The American Accountability Foundation (AAF) filed a formal <a href="https://freebeacon.com/wp-content/uploads/2025/11/NVF-IRS-Complaint.pdf">IRS complaint</a> in November 2025 alleging that the New Venture Fund (NVF), an Arabella-managed entity, engaged in improper &#8220;excess benefit transactions.&#8221; AAF wrote, “We have reason to believe that NVF has solicited hundreds of millions of dollars in donations from the public, a substantial portion of which have been diverted to NVF’s founder and other senior officers through an administrative services agreement with Arabella Advisors LLC (‘Arabella Advisors’), which was controlled by those same individuals. If so, NVF has engaged in improper excess benefit transactions by paying Arabella Advisors more than $200 million since 2006.”
The Treasury&#8217;s new reporting requirements aim to track where public money actually goes. NGO Monitor <a href="https://ngo-monitor.org/funder/tides-network/">reported</a> in March 2025, “Since 1976, Tides has ‘scaled more than 1400 social ventures, fueled social change in 120+ countries, and mobilized over $3 billion for impact.’ A number of these social ventures demonize Israel, promote antisemitic rhetoric, and lead BDS campaigns.”
“If an organization receives public funds,” said Acting IRS Chief Counsel Ken Kies, “it should be prepared to show who controls the money and where it goes.”

Scott Bessent

Treasury Department Announces IRS Overhaul To Target ‘Shadow’ Leftist Nonprofit Networks

Dark Money

Department of the Treasury

Executive

Money In Politics

Politics

Tax-exempt organizations

Treasury Secretary Scott Bessent has officially launched “Operation Economic Fury,” a sweeping, aggressive campaign aimed at the total economic isolation of the Iranian regime.
Describing the measures as the &#8220;financial equivalent&#8221; of a military bombing campaign, Bessent signaled a return to a strict “maximum pressure” stance, targeting illicit oil networks, terror financiers, and global banks that continue to facilitate Tehran’s activities.
The announcement coincided with a <a href="https://home.treasury.gov/news/press-releases/sb0443">massive enforcement action</a> by the Office of Foreign Assets Control (OFAC), which sanctioned more than two dozen individuals, companies, and vessels. At the center of the crackdown is the multi-billion dollar petroleum empire of Mohammad Hossein Shamkhani, the son of the late senior Iranian security official Ali Shamkhani.
According to the Treasury, the Shamkhani network has enmeshed itself in the global shipping industry using a sophisticated web of front companies in the United Arab Emirates, the Marshall Islands, and India. These firms, including Oriel Group and House of Shipping, allegedly provided a “veneer of legitimacy” while managing a shadow fleet that generates billions of dollars for both the Iranian and Russian regimes.
“Treasury is moving aggressively with Economic Fury by targeting regime elites like the Shamkhani family that attempt to profit at the expense of the Iranian people,” Secretary Bessent stated.
The operation also took aim at a complex &#8220;oil-for-gold&#8221; scheme involving Lebanese Hizballah financier Seyed Naiemaei Badroddin Moosavi. In coordination with Homeland Security Investigations (HSI), the Treasury revealed that Moosavi facilitated the smuggling of Iranian oil to the former Venezuelan regime under Nicolás Maduro in exchange for gold. This gold was then allegedly moved via Mahan Air to Hizballah members in Tehran before being laundered through Turkey.
In a move that will likely tighten global energy markets, Bessent confirmed that the United States will not renew the general licenses that allowed for the purchase of Iranian and Russian oil. These waivers, which allowed &#8220;oil on the water&#8221; prior to March 11 to reach its destination, are set to expire on April 19, 2026.
Bessent dismissed the need for further relief, arguing that the temporary measures intended to stabilize prices during recent regional conflicts have served their purpose. &#8220;All that oil has been used,&#8221; Bessent told reporters, signaling that the administration is no longer willing to tolerate leaks in the sanctions regime.
Perhaps the most significant escalation of Operation Economic Fury is the administration&#8217;s willingness to deploy secondary sanctions. These measures target third-party entities — such as foreign banks — that do business with sanctioned Iranian actors, effectively forcing them to choose between the Iranian market and access to the U.S. financial system.
Bessent revealed that the Treasury has already issued formal warnings to two major Chinese banks. Historically, China has purchased upwards of 90% of Iran’s exported oil.
&#8220;If we can prove that there is Iranian money flowing through your accounts, then we are willing to put on secondary sanctions,&#8221; Bessent <a href="https://www.youtube.com/watch?v=rgDR6obU-CI">warned</a>. He noted that the U.S. is seeking deeper cooperation from Gulf Cooperation Council (GCC) neighbors to freeze the assets of the Islamic Revolutionary Guard Corps (IRGC) and other leadership figures.
Addressing concerns from the shipping industry regarding the volatile Strait of Hormuz, Bessent discussed a potential U.S. government reinsurance program. Highlighting that insurance rates from Lloyd&#8217;s of London remain &#8220;skyrocketing,&#8221; he suggested the U.S. could provide a &#8220;normalized level&#8221; of insurance to encourage commercial traffic once the lanes are declared safe.
&#8220;Exactly,&#8221; Bessent replied when asked if this was an expansion of the war through economic rather than kinetic means. With over 1,000 entities sanctioned since the start of the current campaign, Operation Economic Fury marks the administration’s most decisive effort yet to bankrupt the Iranian state&#8217;s military and proxy capabilities.

White House daily press briefing

‘Operation Economic Fury’ Moves Against America’s Enemy Without A Single Shot

Global Politics

Iran

World

Banks and everyday Americans can cash in if they report fraud, Treasury Secretary Scott Bessent explained on Monday. 
The Treasury Department issued an advisory to banks pushing them to monitor accounts more closely for suspicious activity, saying, &#8220;They’re the frontline in identifying financial fraud when nonprofits, whether its daycare centers, hospice care, start wiring big round numbers out, that&#8217;s a problem. There are large multi-national criminal organizations that are doing healthcare fraud, so we are all hands on deck.” 
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) works with financial institutions to detect suspicious activity under a rule requiring the reporting of transactions of $2,000 or more that appear to follow suspicious patterns. Bessent said &#8220;suspicious activity reports&#8221; are up 20% this year. 
Whistleblowers, whether they are institutions or individuals, whose tips lead to enforcement actions could <a href="https://home.treasury.gov/news/press-releases/sb0426">receive</a> awards ranging from 10 to 30 percent of the fines collected as a result of their information. Bessent said the program is looking for tips specifically related to &#8220;government programs where there is a lack of common sense.” He then described Minnesota’s childcare programs that did not actually take care of children as an example of such a program that lacked &#8220;common sense.&#8221;
In January, the Treasury Department launched a modernized website to encourage Americans to report government fraud. “It’s kind of like at TSA where they say if you see something, say something,” Bessent said. “And if you say something and it turns out you have helped us make a big recovery, we want to pay for that.” 
The <a href="https://www.fincen.gov/whistleblower/">website</a> encourages users to submit as much detail as they can, including the names and contact information of all individuals and entities involved in the allegations, a description of any evidence supporting the allegations, and — if applicable — the amount of money that may have been defrauded. However, only a first name, last name, phone number, subject area, and description of the issue are required to submit the tip. 
The scale of the problem the initiative aims to address is significant. The Government Accountability Office <a href="https://www.gao.gov/products/gao-24-105833">estimates</a> that the federal government loses between $233 billion and $521 billion each year to fraud. Tackling those losses has become a major policy priority. The initiative aligns with a core campaign promise from President Trump, who has pledged to eliminate fraud, waste, and abuse across federal programs. The Trump administration argues that, absent fraud, the $2 trillion annual deficit could be balanced by keeping funds within the system and ensuring they are used for the services the misdirected funds were originally intended to support.
In addition to encouraging public participation, the administration has also taken steps within the federal government itself. Alongside the civilian reporting program, President Trump <a href="https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/">announced</a> the creation of a dedicated task force focused on identifying and eliminating fraud across agencies. Vice President JD Vance heads up the new task force, which kicked off its first meeting on Friday. The ongoing crisis in Minnesota, which was made a national topic by YouTuber Nick Shirley, was a central focus of the meeting.

GettyImages-1764152391

Uncle Sam Wants You To Snitch. You’ll Even Get Paid Big For It.

Fraud

Treasury Secretary Scott Bessent delivered a scathing response to The Financial Times after the outlet published a story — which he labeled &#8220;explicitly false&#8221; — about his plans for the future of the Federal Reserve.
The <a href="https://www.ft.com/content/9d1859f0-2f93-4ff1-8cfb-8046342bf9f7?syn-25a6b1a6=1">Financial Times</a> headline read, &#8220;Scott Bessent praised Bank of England as model for tighter oversight of Federal Reserve.&#8221; An X post promoting the piece followed the same general theme: &#8220;U.S. treasury secretary Scott Bessent discussed tightening the US Treasury’s oversight of the Federal Reserve by adopting elements of the Bank of England’s model.&#8221;
Bessent objected in a lengthy <a href="https://x.com/SecScottBessent/status/2037337495575134643?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2037337495575134643%7Ctwgr%5E267dcd7cc78786bcb565c54c2e581946497d7248%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Ftwitchy.com%2Fsamj%2F2026%2F03%2F27%2Fscott-bissent-financial-times-n2426503">X post</a> of his own, explaining that as recently as 2025, he had written a comprehensive (<a href="https://www.international-economy.com/TIE_Sp25_Bessent.pdf">6,000+ words</a>) analysis of potential reforms for the Federal Reserve, and that he had never adopted a stance supporting a move toward the Chancellor-Bank of England statute for the relationship between the Treasury and the Federal Reserve.
&#8220;By publishing this explicitly false story, the @FT has officially become tabloid trash for market participants,&#8221; Bessent began, noting that he had gone on the record denying the premise of the story. &#8220;Despite my direct, on-the-record denial of ever having advocated, explored, or espoused the idea that Chancellor-Bank of England statute serving as a prototype for a Treasury-Federal Reserve relationship, FT journalists manufactured a story with the headline, &#8216;Scott Bessent praised Bank of England as model for tighter oversight of the Federal Reserve.'&#8221;
&#8220;These pathetic journalists have clearly fabricated a story to give the impression that both I and the Trump Administration are setting &#8216;about restructuring the relationship … at a time when President Donald Trump has launched an unprecedented assault on the world’s most important central bank,'&#8221; Bessent continued, referring to the story as a &#8220;mendacious assertion&#8221; backed only by anonymous &#8220;financial industry executives.&#8221;
&#8220;In short, FT has literally manufactured an entirely fake policy position for me and the Administration,&#8221; Bessent said. He went on to say that he didn&#8217;t understand why The Financial Times would go ahead with such a story — which he said could only further damage their credibility as journalists — unless their sole priority was to paint a picture of discord and division in President Donald Trump&#8217;s administration.
&#8220;Over the past 10 years, I have written more than 20,000 words opining on the Federal Reserve decisions, personnel, structure, and modifications. Nowhere have I ever mentioned this ridiculous notion,&#8221; Bessent added. &#8220;The Governor’s letters to the Chancellor have proven to be a useless and perfunctory device. There is much to be said about the storied Bank of England, but any recreation of its operating framework on this side of the Atlantic has never been contemplated.&#8221;
Bessent concluded with one last shot at The Financial Times, saying, &#8220;The shameful journalists and editors at the FT are shocking in their meretriciousness, lack of standards, and general intellectual libertinism. It is the worst tradition of Fleet Street to manufacture news rather than report on it. They have brought irredeemable shame to their parent organization, Nikkei Inc., with whom I had previously held excellent relations.&#8221;
<a href="https://www.international-economy.com/TIE_Sp25_Bessent.pdf">Bessent&#8217;s argument</a> for change in the Federal Reserve had more to do with reining in &#8220;institutional bloat&#8221; and the &#8220;overuse of nonstandard policies&#8221; created to address specific issues.
&#8220;As we saw during the covid pandemic, when lab-created experiments escape their confines, they can wreak havoc in the real world. Once released, they cannot easily be put back into the containment zone,&#8221; Bessent explained. &#8220;The &#8216;extraordinary&#8217; monetary policy tools unleashed after the 2008 financial crisis have similarly transformed the U.S. Federal Reserve’s policy regime, with unpredictable consequences.&#8221;

Treasury Secretary Scott Bessent

‘Tabloid Trash’: Scott Bessent Issues Scathing Response To Media Story On Plans For The Fed

'Tabloid Trash': Scott Bessent Issues Scathing Response To Financial Times Story On Plans For Fed

Federal Reserve

Media

Treasury Department

Treasury Secretary Scott Bessent slammed reports that President Trump’s meeting with China would be delayed if Beijing did not agree to secure the Strait of Hormuz. 
“There’s a false narrative out there,” said Bessent. “If the meetings are delayed, it wouldn’t be delayed because the President has demanded that China police the Strait of Hormuz. If the meeting for some reason is rescheduled, it would be rescheduled because of logistics. The President wants to remain in D.C. to coordinate the war effort, and traveling abroad at a time like this may not be optimal.” 
Bessent traveled to Paris to begin trade talks with Chinese Vice Premier He Lifeng on Sunday to set the stage for President Trump’s state visit to Beijing at the end of March. The Treasury Secretary added he had a successful meeting with Lifeng, discussing China’s purchase commitments to the United States and the new tariff regime. 
Trump first announced his visit in late November after a phone call with China&#8217;s President Xi Jinping. Xi <a href="https://www.trumpstruth.org/statuses/33994?utm_source=chatgpt.com">invited</a> Trump to Beijing following their meeting in South Korea.
Bessent’s assurance that any delay to Trump’s visit would be logistical follows Beijing’s rejection of Trump’s suggestion that China deploy warships to help reopen the Strait of Hormuz, a critical passage through which more than one-fifth of the world’s oil supply travels.
When asked about the proposal, Chinese Foreign Ministry spokesperson Lin Jian <a href="https://www.newsweek.com/china-rejects-trump-appeal-help-us-against-iran-11682132">said</a>, “China’s position is clear. We once again call on all sides to immediately cease military actions, avoid further escalation, and prevent regional turbulence from having a major impact on global economic growth.”
Along with not taking Trump up on his proposal, China has condemned the United States&#8217;s role in the attacks on Iran. However, George Chen, partner at the Asia Group, does not expect the issue to be a central topic during April&#8217;s talks. “U.S.-China relations are already complicated enough for President Trump and Xi to handle,&#8221; he <a href="https://abcnews.com/International/wireStory/chinas-response-us-attack-iran-foreign-policy-130712305">said</a>. Adding Iran to the mix &#8220;won’t be something that both sides are keen to do.”
What will be central to the talks are tariffs. In response to the Supreme Court knocking down Trump&#8217;s sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), the administration has turned to other trade authorities, including Section 122 tariffs and potential Section 301 tariffs led by U.S. Trade Representative Jamieson Greer.
Section 122 allows the president to impose tariffs of up to 10 percent for 150 days without congressional approval. Section 301 tariffs, meanwhile, require a formal investigation conducted by the U.S. Trade Representative’s office.
Before IEEPA was overturned, Trump could impose a levy as quickly as posting to Truth Social. But stripped of the power of IEEPA, Bessent says 301 will not be imposed until July, and he will need congressional action after 150 days for section 122. 
“We assume there will be very little change in Tariff revenue,” said Bessent. “The ultimate purpose of tariffs is to reshore production. At the end of the day, we want to reshore manufacturing in the US, especially strategic manufacturing.” Bessent said that goal also shaped the administration’s approach to trade talks with China. He added that the administration does not want to fully decouple from China, but does want to bring key strategic manufacturing back to the United States.
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President Trump Signs Executive Order In The Oval Office

Bessent Slams ‘False Narrative’ on Trump-China Talks

China

Donald Trump

On Monday, Treasury Secretary Scott Bessent appeared on CNBC to deliver a blunt, high-stakes briefing on the geopolitical chess match currently upending global energy markets.
With U.S.-traded oil hitting the $100-a-barrel mark for only the third time in a decade, Bessent laid out a cold, calculated strategy for a world gripped by what he termed the &#8220;head of the snake&#8221; in Tehran.
Bessent didn’t mince words regarding the administration’s goal: the total neutralization of Iran’s ability to disrupt the globe. &#8220;President Trump has made it clear that his goal is to degrade and destroy the capabilities, the military capabilities of the regime, to destroy the Navy, which is done, the Air Force, which is done,&#8221; Bessent stated. He noted that current bombing campaigns are now targeting factories so the regime &#8220;cannot recreate these things.&#8221;
Characterizing the conflict as a &#8220;generational opportunity to end this,&#8221; Bessent dismissed the idea of a coherent Iranian leadership. Using a biting historical analogy, he remarked, &#8220;Think: They&#8217;re in Hitler&#8217;s bunker, but Hitler is dead. And now they have dispersed out.&#8221; He stated, &#8220;One of the things I&#8217;m going to do is bust this myth that is in the mainstream media that there is this coherent Iranian plan that they are a smoothly functioning government.  First of all, the previous Ayatollah did not want his son to become the Ayatollah. He left written instructions, and they overrode him. We believe that the current Ayatollah is injured. We don&#8217;t know to what extent and may be incapacitated. And they&#8217;re just small bases. They&#8217;re in the bunker. They are panicked. And like the circular firing [squad] that they are doing on their Gulf neighbors was a big mistake.&#8221;
Leveraging his background as a former hedge fund manager, Bessent provided a detailed breakdown of the math governing the current crisis. He estimated a global oil deficit of &#8220;somewhere between 10 and 14&#8221; million barrels a day. To bridge this gap, the Treasury is employing pragmatic, if controversial, tools — most notably a 30-day waiver for Russian oil already &#8220;on the water,&#8221; totaling roughly 130 million barrels.
When challenged on the optics of &#8220;removing sanctions on Putin,&#8221; Bessent offered a clinical defense. &#8220;Which is more? If oil spiked to $150, but Putin was getting 70% of that, or oil stays at 95 to 100. Where is he getting more money if it spikes to 150?&#8221; he asked. He argued that keeping prices lower ensures Putin’s coffers remain &#8220;roughly unchanged,&#8221; whereas a price explosion would provide the windfall Russia needs to fund a government that costs &#8220;$2 billion a day to run.&#8221;
Regarding the disruption in shipping traffic through the Strait of Hormuz, Bessent revealed a strategy of calculated leniency to keep the world supplied. &#8220;We are seeing more and more of the fuel ships start to go through; the Iranian ships have been getting out already, and we&#8217;ve let that happen to supply the rest of the world,&#8221; he explained. &#8220;We think that there will be a natural opening that the Iranians are letting out. And for now, we&#8217;re fine with that. We want the world to be well-supplied.&#8221;
He emphasized that this &#8220;natural opening&#8221; is preferable to immediate military flotillas. He pointed out that Saudi Arabia and the UAE have already diverted about 5 million barrels of production to the Red Sea. Combined with a &#8220;global SPR release, largest ever, [of] 400 million barrels,&#8221; the Treasury believes it can weather the storm.
Ultimately, Bessent’s message was clear: the administration is prioritizing market stability and the total dismantlement of Iranian power over the rigid adherence to pre-war sanction structures. By &#8220;unsanctioning&#8221; specific shipments to alleviate shortages in Asia, the Treasury is betting that short-term flexibility will prevent a global economic meltdown while the military &#8220;destroys the Iranian ability to project power&#8221; once and for all.
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Bessent Delivers Reality Check On Oil, Slams Crisis Narrative

STABILITY IN THE STORM: Bessent Says Of Oil, 'We're Fine,' Slams ‘Crisis’ Narrative

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on Thursday against four international nonprofit organizations identified as &#8220;sham charities&#8221; used to bankroll Hamas’s military wing.
The <a href="https://home.treasury.gov/news/press-releases/sb0415">action</a> targets three organizations based in Turkey — Ghazi Destek Dernegi (GDD), Hayat Yolu, and Palestinian White Hands — as well as the Indonesia-based Komite Nasional Untuk Rakyat Palestina (KNRP). Treasury officials allege these groups pose as humanitarian entities while covertly siphoning donations to the Izz al-Din al-Qassam Brigades, Hamas&#8217;s military apparatus.
According to Treasury investigators, these organizations leverage global networks to generate revenue for terrorist operations. Internal Hamas documents seized by authorities reportedly show that GDD collaborated with previously sanctioned entities to fund construction projects benefiting the group. Similarly, Palestinian White Hands was found to be integrated into the Hamas military security apparatus.
In Indonesia, KNRP is accused of coordinating directly with Hamas to distribute materials intended exclusively for fighters. Treasury also identified Hayat Yolu as an operational and financial hub for the Muslim Brotherhood.
“Hamas continues to finance its military wing by exploiting sham charities to support terrorist operations,” said Secretary of the Treasury Scott Bessent. “The Treasury Department will not allow Hamas to misuse the charitable sector for its violent aims.”
Today’s designations build on a series of recent actions aimed at dismantling Hamas’s financial infrastructure. Previous rounds of sanctions occurred on <a href="https://home.treasury.gov/news/press-releases/sb0368">January 21, 2026</a>, and <a href="https://home.treasury.gov/news/press-releases/sb0162">June 10, 2025</a>. Officials noted that Hamas frequently preys on the sympathies of international donors, redirecting funds intended for Palestinian civilians to prolong the regional conflict.
Hamas has been designated by the U.S. as a Foreign Terrorist Organization since 2001. Today’s enforcement was conducted under Executive Order 13224, which targets terrorists and those providing them with material support.
As a result of these sanctions, all property and interests belonging to these entities within the U.S. or controlled by U.S. persons are blocked. Americans are generally prohibited from engaging in transactions with the designated groups. Foreign financial institutions that facilitate significant transactions for these groups risk losing access to the U.S. financial system.

Trump Admin Shuts Down Sham Charities Caught Bankrolling Hamas

U.S. Treasury Sanctions Four Sham Charities Linked to Hamas Financing

Hamas

The Supreme Court delivered a long-awaited decision on Friday, striking down President Trump’s sweeping International Emergency Economic Powers Act (IEEPA) tariffs. But while the court ruled on the legality of the tariffs themselves, it did not address whether the United States must refund more than $200 billion in revenue already collected.
“The court’s decision is likely to generate other serious practical consequences in the near term. One issue will be refunds,” dissenting Supreme Court Justice Brett Kavanaugh wrote. “Refunds of billions of dollars would have significant consequences for the U.S. Treasury.”
Ruling only on the narrow legal question before them, the court did not establish a framework for refunds. Such a framework will likely be established by lower courts, particularly the United States Court of International Trade, which ruled against Trump’s tariff decision.
In response to the Supreme Court decision, President Trump said, “They take months and months to write an opinion, and they don’t even discuss that point. We’ve taken in hundreds of billions of dollars … wouldn’t you think they’d put one sentence in there saying keep the money or don’t keep the money?”
If refunds are ultimately required, the United States Treasury would be tasked with reimbursing importers for the levies they incurred — a process Kavanaugh deemed a “mess,” as refunds could be required to be issued to foreign nations, consumers, and manufacturers depending on court outcomes.
The president of the Committee for a Responsible Federal Budget, Maya MacGuineas, said that with the federal deficit in mind, the ruling was very bad news: &#8220;With today’s Supreme Court ruling affirming the illegality of President Trump’s emergency tariffs, the country will now be about $2 trillion deeper in the hole. With the national debt already the size of the entire U.S. economy and interest on the debt costing more than $1 trillion this year, this is very bad news. Congress should work quickly to fill that hole.&#8221;
She added, &#8220;We are in a dismal fiscal situation, and it just got worse.”
Treasury Secretary Scott Bessent said the $200 billion in tariff revenue could be used to shrink the $2 trillion deficit and pay down the $36 trillion debt.
Beyond budgetary concerns, the ruling could impact Trump’s broader use of tariffs as a foreign policy tool during negotiations. In February, he threatened to impose tariffs on countries that do business with Iran, citing the country’s repression of protesters, support for proxy terrorist groups, and continued pursuit of nuclear capabilities. In May, the president warned China that tariffs would increase if the country continued not to ship rare earth minerals to the United States — materials used in products ranging from household appliances and automobiles to semiconductors for artificial intelligence chips.
In addition to bringing back jobs and supply chains to the United States, Trump argues he needs tariffs to address a national security concern: the hollowing out of the manufacturing base. In an executive order signed on Liberation Day, Trump explained that the inability to scale advanced manufacturing undermines “critical supply chains; and rendered our defense-industrial base dependent on foreign adversaries.”
At a White House press conference on Friday, the president confirmed he will continue issuing tariffs under authorities granted to him through Section 232, rather than relying on the broader emergency powers provided under the International Emergency Economic Powers Act (IEEPA).

President Trump Holds “Make America Wealthy Again Event” In White House Rose Garden

Tariffs Overturned: What Happens To The $200 Billion Already Collected?

Courts

Supreme Court

Tariffs

Justice Brett Kavanaugh said Friday that President Donald Trump could likely preserve most of his “Liberation Day” tariffs despite the Supreme Court&#8217;s decision striking them down. 
Writing in dissent, Kavanaugh argued that while the Court <a href="https://www.dailywire.com/news/scotus-strikes-down-most-of-trumps-tariffs-complicating-his-bid-to-rewrite-international-trade?topStoryPosition=undefined&amp;author=Zach+Jewell&amp;category=News&amp;elementPosition=0&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=SCOTUS+Strikes+Down+Most+Of+Trump%E2%80%99s+Tariffs%2C+Complicating+His+Bid+To+Rewrite+International+Trade">rejected</a> Trump’s reliance on the International Economic Emergency Powers Act (IEEPA), other federal statutes could authorize most of the tariffs.  
“Although I firmly disagree with the Court’s holding today, the decision might not substantially constrain a President’s ability to order tariffs going forward,” he wrote. “That is because numerous other federal statutes authorize the President to impose tariffs and might justify most (if not all) of the tariffs at issue in this case—albeit perhaps with a few additional procedural steps that IEEPA, as an emergency statute, does not require.”
Kavanaugh pointed specifically to the Trade Expansion Act of 1962, the Trade Act of 1974, and the Tariff Act of 1930 as alternative statutory bases that could authorize the tariffs Trump sought to impose. 
“IEEPA merely allows the President to impose tariffs somewhat more efficiently to deal with foreign threats during national emergencies,” he said. “In essence, the Court today concludes that the President checked the wrong statutory box by relying on IEEPA rather than another statute to impose these tariffs.”
Kavanaugh&#8217;s position mirrors one previously articulated by Treasury Secretary Scott Bessent. In December, Bessent <a href="https://www.cnbc.com/2025/12/03/bessent-says-us-will-be-able-to-replicate-tariffs-even-if-it-loses-supreme-court-decision.html">said</a> multiple sections of the Trade Expansion Act of 1962 could be used to “recreate the exact tariff structure” Trump imposed through IEEPA. 
In his dissent, Kavanaugh argued that both history and law were on Trump’s side. Specifically, Kavanaugh pointed to the global tariffs imposed by former President Richard Nixon in 1971 as an example of a president imposing broad trade restrictions during an economic crisis.
“Statutory text, history, and precedent demonstrate that the answer is clearly yes: Like quotas and embargoes, tariffs are a traditional and common tool to regulate importation,” he said. 
Kavanaugh also argued that it would be illogical to allow the president to block all trade with China while barring him from imposing tariffs on Chinese imports. 
“As [the plaintiffs] interpret the statute, the President could, for example, block all imports from China but cannot order even a $1 tariff on goods imported from China,” Kavanaugh said. “That approach does not make much sense.”
Kavanaugh also warned that the ruling could raise questions about whether the government must issue refunds for tariffs already collected and potentially affect trade deals negotiated under those tariffs. 
Justices Clarence Thomas and Samuel Alito joined Kavanaugh&#8217;s dissent. Thomas also wrote a separate opinion arguing that Congress had delegated tariff authority to the president.

President Trump Delivers State Of The Union Address To Joint Session Of Congress

Kavanaugh Lays Out How Trump Could Recreate Tariffs Through Other Laws

Brett Kavanaugh

New federal data released Friday showed inflation slowing and wages rising in January, trends the Trump administration says signal improving affordability.
The Bureau of Labor Statistics reported that consumer prices rose 2.4% last month, below the 2.5% forecast. Markets rose following the news.
Average hourly earnings rose <a href="https://www.bls.gov/news.release/pdf/empsit.pdf">3.7%</a> over the past year, outpacing inflation and reflecting real wage growth. Private-sector employers added more than 170,000 jobs in January.
“We saw real wage growth in 2025,&#8221; Treasury Secretary Scott Bessent said. &#8220;It could be very strong in 2026, and I think the American people are going to start feeling it.”
The White House said the data reflect the success of President Donald Trump&#8217;s economic policies.
“President Trump has defeated Joe Biden’s inflation crisis in record time,&#8221; said White House Spokesperson Taylor Rogers. &#8220;Inflation is low, wages are up, and the American economy is booming — all thanks to President Trump’s pro-growth agenda. President Trump is working hard to Make America Affordable Again — just like he promised.” 
&#8220;Real wages are up $1,400 in 2025 — nearly half of Biden era real wage decline made up for in just one year thanks to President Trump,&#8221; said White House Deputy Press Secretary Kush Desai. &#8220;This is just the beginning: President Trump&#8217;s MFN drug pricing deals, tax cuts, trade deals, and deregulation are just starting to take effect.&#8221;
When President Joe Biden took office in 2021, annual inflation was running at 1.9%. During his term, inflation averaged 4.9% and peaked at 9.1% in 2022. Biden signed the $1.9 trillion American Rescue Plan in 2021, which included $1,400 direct payments to Americans.
“Joe Biden crashed the economy,” Bessent said. “The policies were a disaster for the American people.” 
Bessent argued that the Biden administration boosted demand through increased government spending while constraining supply with tighter regulations, driving up inflation. 
The January data marks the latest sign that inflationary pressures may be easing as the administration pushes its affordability agenda.

Consumer Prices See Largest Increases In 30 Years

Inflation Cools, Wages Rise As Trump White House Celebrates Affordability Gains

Economy

Inflation

Jobs

Unemployment

Treasury Secretary Scott Bessent took a swing at liberal media network MS NOW — referring to it by its previous name, MSNBC — prompting laughs from Chairman Tim Scott (R-SC) along with several others in Thursday&#8217;s Senate Banking Committee hearing.
Bessent was taking questions from the committee on the economy during President Donald Trump&#8217;s first year in office, and he made the argument that public sentiment — and consumer confidence — could easily be influenced by dishonest media narratives.
WATCH:
<blockquote class="twitter-tweet">
.<a href="https://twitter.com/SenatorRicketts?ref_src=twsrc%5Etfw">@SenatorRicketts</a>: &#8220;What more could we be doing in the Senate…to be able to help out with confidence…of consumers&#8221;<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>: &#8220;Other than telling consumers to turn off MSNBC…it is a survey problem, where Democrats vote very low and Republicans are more realistic.&#8221; <a href="https://t.co/HgwM2YULv5">pic.twitter.com/HgwM2YULv5</a>
— CSPAN (@cspan) <a href="https://twitter.com/cspan/status/2019465329676808367?ref_src=twsrc%5Etfw">February 5, 2026</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Senator Pete Ricketts (R-NE) noted that consumer confidence did not appear to match the numbers coming from recent economic reports — and asked Bessent to identify where the disconnect might be and explain what could be done to bring people around.
&#8220;Despite all this progress, we&#8217;re seeing consumer confidence is not really rebounding the way that the economy seems to be,&#8221; Ricketts said. &#8220;In your opinion, what more can we in the Senate be doing with regard to consumer confidence and, you know, obviously, we had 40-year high inflation under the Biden administration. What more could we be doing in the Senate … to be able to help out with confidence … of consumers?&#8221;
&#8220;Other than telling consumers to turn off MSNBC,&#8221; Bessent began, prompting several loud laughs. &#8220;A large part of it is a survey problem, where Democrats vote very low and Republicans are more realistic, and then we end up — what we are seeing —&#8221;
Scott interrupted them to explain that the time had expired for Senator Ricketts and it was time to move on with the hearing.
&#8220;I appreciate your comments, believe me,&#8221; Scott said to Bessent with a chuckle.
Bessent also sparred with Senator Elizabeth Warren (D-MA), who asked him during Thursday&#8217;s hearing whether he agreed with President Donald Trump about the &#8220;affordability crisis&#8221; being a &#8220;hoax.&#8221;
Bessent carefully explained — more than once — that the Trump administration&#8217;s position was not that the affordability crisis was a hoax. He argued instead that the &#8220;hoax&#8221; was a reference to Democrat efforts to spin a real crisis of their own making — during former President Joe Biden&#8217;s administration — as something brand new that was wholly created and owned by President Trump.

US Treasury Secretary Scott Bessent Interview

Scott Bessent Nukes MSNBC When Asked How To Boost Consumer Confidence

MSNBC

Tim Scott

Treasury Secretary Scott Bessent waged a verbal war on Rep. Maxine Waters (D-CA) during a Capitol Hill hearing on Wednesday, ultimately asking the California Congresswoman whether it would be possible for her to &#8220;maintain some level of dignity.&#8221;
Waters had spent some of her time leading up to that heated exchange asking whether Bessent would be &#8220;the voice of reason&#8221; and oppose President Donald Trump&#8217;s tariffs.
WATCH:
<blockquote class="twitter-tweet">
Maxine Waters goes on unhinged rant, repeatedly talking over Scott Bessent — then gets finished by one of Bessent’s trademark rhetorical daggers.
Waters: “Can you shut him up?&#8221;
Bessent: “Can you maintain some level of dignity?&#8221;
Oof. <a href="https://t.co/z3IXTBpfWX">pic.twitter.com/z3IXTBpfWX</a>
— Western Lensman (@WesternLensman) <a href="https://twitter.com/WesternLensman/status/2019079224041087029?ref_src=twsrc%5Etfw">February 4, 2026</a></blockquote>
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&#8220;So I ask you, Secretary Bessent, will you be the voice of reason in this administration and urge President Trump to stop waging a war on American consumers, harming housing affordability, and putting the economy at risk?&#8221; Waters asked. &#8220;Yes or no. You don’t have to explain.&#8221;
&#8220;Representative —&#8221; Bessent began, and when it was clear that he intended to give her a longer answer than she&#8217;d asked for, she began to talk over him.
&#8220;Will you be the voice? Will you be the voice? Will you be the voice of reason? Will you be the voice of — yes or no?&#8221; Waters demanded.
&#8220;A study from Wharton University has shown —&#8221; Bessent tried again, but Waters continued interrupting.
&#8220;Reclaiming my time. Reclaiming my time. Reclaiming my time. Reclaiming my time,&#8221; Waters repeated several times. &#8220;Mr. Chair, will you let him know when I ask to reclaim my time —&#8221;
Rep. French Hill, chairman of the House Financial Services Committee, conceded that the time did, in fact, belong to Waters.
&#8220;Ten to 20 million Americans —&#8221; Bessent made one last attempt.
Waters, clearly exasperated, turned to Hill and asked, &#8220;Can you shut him up?&#8221;
&#8220;What about the housing stock for working Americans? And can you maintain some level of dignity?&#8221; Bessent jabbed at Waters, just as Hill announced that Waters&#8217;s time had expired.
Waters objected, but Hill repeated that her time had expired.
&#8220;The gentleman took up my time. I think you should recognize that, Mr. Chair,&#8221; she said.
Bessent also sparred with several other Democrats during Wednesday&#8217;s hearing, including Rep. Stephen Lynch (D-MA), who spent much of his allotted time shouting at the Treasury Secretary. When Bessent did get a chance to speak, he said calmly, &#8220;Could you speak a little louder? I can&#8217;t hear you.&#8221;
&#8220;Yeah, okay,&#8221; was Lynch&#8217;s sarcastic response.
<blockquote class="twitter-tweet">
🚨 BREAKING: Treasury Sec. Scott Bessent just TRIGGERED Democrat Rep. Lynch after he erupted in a FIT OF RAGE
LYNCH: *Yelling incoherently*
BESSENT: &#8220;Could you speak a little louder? I can&#8217;t hear you!&#8221; 😂😂
LYNCH: &#8220;Yeah, OK&#8230;&#8221;
Bessent infuriates all of them! <a href="https://t.co/gN8dq1aTIV">pic.twitter.com/gN8dq1aTIV</a>
— Eric Daugherty (@EricLDaugh) <a href="https://twitter.com/EricLDaugh/status/2019083215466549744?ref_src=twsrc%5Etfw">February 4, 2026</a></blockquote>
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Maxine & Scott (3)

Scott Bessent Throws Down With Maxine Waters In Wild Capitol Hill Exchange

Congress

Maxine Waters

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