Propublica is a nonprofit newsroom that investigates power abuse. Sign up and receive the biggest story as soon as it’s published.
In 2023, Christie Noem was governor of South Dakota, but she supplemented her income by secretly accepting the cuts in the money she raised for nonprofits that promote her political career, tax records show.
After experts described it as a very unusual arrangement, the nonprofit has recently routed funds to NOEM’s personal company, which was founded in Delaware. The payment totaled $80,000 that year, significantly boosting her government salary of around $130,000. As nonprofits are so-called dark money groups, the source of the original money remains unknown as they are groups that are not necessary to disclose the names of donors.
Noem then failed to make the $80,000 payment available to the public. After President Donald Trump chose NOEM as secretary to the Department of Homeland Security, she had to release detailed accounting of assets and revenue streams from 2023. She called experts potentially violating federal ethics requirements.
Experts told Propublica that Noem personally collects money from political tranquilsa is troublesome. In its filing, the group, a nonprofit called the American Resolve Policy Fund, described $80,000 as a funding payment. The organization said Noem brought in hundreds of thousands of dollars.
There’s nothing surprising about politicians raising money for nonprofits and other groups that promote campaigns and agendas. Experts say what’s unusual is that politicians keep a portion of their money for themselves.
“It’s new and disturbing when donors to these nonprofits are not only holding keys to the political future of elected officials, but also literally providing them with income,” said Daniel Weiner, a former federal election commission lawyer who currently leads Brennan Center’s campaign finance work.
Propublica has discovered details of payments in the annual tax form of the American Resolve Policy Fund, part of a network of political groups promoting Noem and her agenda. The nonprofit organization describes its mission as “fighting to protect America for the next generation.” There is little evidence in the public domain that the group has done much. In the first year, the main spending was paid to NOEM to cover the costs of unspecified travel. We also maintain a social media account dedicated to promoting NOEMs. X has 100 followers.
In a statement, Noem’s lawyer Trevor Stanley said “at the time, Noem was in full compliance with the letters and spirit of the law,” and that the government’s Ethics Bureau had processed the disclosure format for federal employees and “analysed and cleared her financial information regarding the entity.” Stanley did not respond to follow-up questions about whether the Ethics Bureau is aware of the $80,000 payment.
Stanley also said, “Secretary Gnome has fully disclosed all her income in public documents that are available immediately.” Given that Noem did not report a $80,000 payment on the federal financial disclosure form, he was asked for evidence, but Stanley did not respond.
Before being appointed Secretary of Homeland Security and overseeing immigration enforcement, Noem spent 20 years in the South Dakota government and the U.S. House of Representatives, drawing out civil servant salaries. Her husband, Brion Noem, runs a small insurance broker with two offices in the state. According to a NOEM filing, between his company and real estate holdings, he has at least $2 million in assets.
She is one of the wealthiest members of Trump’s Cabinet, but her personal spending habits attracted notifications. Noem was photographed wearing a gold Rolex Cosmograph Daytona watch that cost nearly $50,000 as the agency toured a Salvador prison where immigrants were dispatched. It was revealed in April that she was carrying $3,000 in cash after her wallet was stolen at a restaurant in Washington, DC. She was criticized for using taxpayer money as governor to pay Houston for trips to Paris, trips to Canada for bear hunting, and dental treatments. At the time, Noem refused to misuse public funds.
The LLC, called Ashwood Strategies, Noem’s private company, shares the name with one of her horses. He was registered with Delaware early in his second term as Governor of South Dakota and was around 1pm on June 22, 2023.
American Resolve raised $1.1 million in 2023, according to its tax returns. The group reported zero employees and it is largely unknown what they did with the money.
NOEM’s Ashwood Strategies received a $80,000 funding fee in 2023, as it raised $800,000 for the nonprofit. Credit: Internal Revenue Service. Screenshots and highlights by Propublica.
In 2023, the nonprofit spent only about $220,000 on the war chest. Over a third of those went to NOEM’s LLC. The rest was primarily directed towards administrative costs and a travel budget of around $84,000. It is not clear for anyone on the trip the group paid for.
The nonprofit reported that it sent a $80,000 funding fee to NOEM’s LLC. Professional fundraisers who raised money for the group were paid a low fee of 7%.
Meanwhile, American resolve maintains a low public profile. In March, I bought a Facebook ad that attacks local news outlets in South Dakota. Noem’s lawyers did not answer questions about whether the group paid her more since the recent 2023 when tax returns were available.
The nonprofit has the American Resolve PAC, the associated political committee, which is more active, at least in public. Advertising Noem’s conservative leadership under the photo she stares into the sky, the website said that the PAC was created to “put Christie and her team on the ground in major races across the United States.” Noem traveled the country last year attending an event sponsored by the PAC to support Republican candidates.
The American Resolve treasurer introduced the questions to Noem’s lawyers. Noem’s lawyer said in his statement that “we did not establish, fund, maintain or control the American Resolution Fund. She was simply a vendor of a nonprofit.”
NOEM failed to report the funding revenue Ashwood strategy received in federal financial disclosures, but she provided some other details. She explained that the LLC includes “personal activities other than my official governoral abilities,” and said she received a $140,000 advance for her book, No Going Back. The LLC also had bank accounts ranging from $100,001 to $250,000, and at least $50,000 “litter and equipment.”
The nation fears that critical funds from FEMA may be exhausted
The fact that Ashwood’s strategy is Noem’s company only emerged through the confirmation process of the post of Trump Ministers. South Dakota has minimal disclosure rules for elected officials, and Noem has not previously revealed that he created a side job while he was governor.
Noem’s external income could have violated South Dakota law, according to Lee Schoenbeck, a veteran Republican politician and lawyer and recently a state senator. The law requires senior officials, including governors, to devote their full-time to official roles.
“The governor should have a private side job that the public doesn’t know about,” Schoenbeck told Propovica. “That would obviously not be appropriate.”
Noem’s lawyers said South Dakota law allows them to earn income from nonprofits.
Is there any information I need to know about Kristi Noem or other administrative staff? Justin Elliott can be contacted by email [email protected] By Signal or WhatsApp on 774-826-6240. Josh Kaplan can be contacted by email [email protected] By Signal or WhatsApp on 734-834-9383.
