Kristi Noem’s time in public office has been marked by financial controversies that make you wonder how she actually used her political position. While serving as South Dakota’s governor, Noem secretly received $80,000 from a dark money nonprofit that promoted her political career, then failed to disclose this payment on required federal ethics forms.
The money came through a personal company she quietly registered in Delaware. The original source of these funds? Still a mystery to the public.
I’ve looked into the details of these allegations. The pattern goes beyond a single undisclosed payment.
The controversies include questions about government spending and personal enrichment through political activities. Did her actions violate ethics rules meant to keep public officials accountable?
These issues matter because we’re talking about someone who held real power and now serves in federal government.
Secret Dealings and Undisclosed Payments by Kristi Noem
Tax records show Kristi Noem received $80,000 from a dark money group through a personal LLC while serving as South Dakota governor. She didn’t report this payment on federal financial disclosure forms.
The $80,000 Payment from American Resolve Policy Fund to Kristi Noem
In 2023, Kristi Noem got $80,000 from American Resolve Policy Fund, a dark money group that doesn’t have to reveal its donors. The nonprofit routed this money to her personal company as payment for fundraising work.
According to tax records, Kristi Noem raised $800,000 for the organization and kept a 10% cut. This arrangement troubled campaign finance experts.
American Resolve Policy Fund raised $1.1 million in 2023 but spent just about $220,000. More than a third of that spending went straight to Noem’s company.
The group claims its mission is “fighting to preserve America for the next generation.” But it barely does anything in public besides running social media accounts promoting Noem—one of which has only about 100 followers on X.
Ashwood Strategies LLC and Delaware Connections
Noem created Ashwood Strategies LLC in Delaware on June 22, 2023, at 1 p.m. Four minutes later, American Resolve Policy Fund incorporated in the same state.
The LLC shares a name with one of her horses. Before her nomination as Homeland Security Secretary, nobody knew this company existed.
South Dakota has minimal disclosure rules for elected officials. Noem never revealed she started a side business as governor.
Besides the American Resolve payment, Ashwood Strategies also got a $140,000 advance for her book “No Going Back.” The LLC had a bank account with $100,001 to $250,000 and at least $50,000 in livestock and equipment.
Failure to Disclose Income and Ethics Violations
Kristi Noem left the $80,000 payment off her federal financial disclosure form when Trump picked her for the Department of Homeland Security job. Experts called this a likely violation of federal ethics requirements.
Her lawyer, Trevor Stanley, insisted she “fully complied with the letter and the spirit of the law” and said the Office of Government Ethics cleared her financial information. But Stanley didn’t respond when asked for proof that OGE knew about the $80,000 payment.
Lee Schoenbeck, a Republican attorney and former South Dakota Senate leader, said the arrangement may have violated state law. South Dakota law requires top officials to devote full time to their government roles.
“There’s no way the governor is supposed to have a private side business that the public doesn’t know about,” he told ProPublica.
Corruption Allegations Around Government Contracts and Spending
The Department of Homeland Security under Kristi Noem handed out over $220 million in advertising contracts that skipped normal competitive bidding. Money flowed to firms directly connected to her inner circle.
These deals involved her spokesperson’s husband and raised red flags among federal contracting experts.
DHS Ad Campaign and No-Bid Contracts
In February, just weeks after taking over DHS, Kristi Noem launched a massive advertising campaign. The agency justified skipping competitive bidding by claiming a “national emergency” at the border demanded immediate action.
The DHS ad budget tripled in the most recent fiscal year. Contract records show $220 million went to just two firms through this process.
Contract Recipients:
- People Who Think (Louisiana): $77 million
- Safe America Media (Delaware LLC): $143 million
Safe America Media was created days before getting its contract. The company lists its address as the Virginia home of Michael McElwain, a Republican operative whose other advertising firm reported only five employees during COVID-19 relief applications.
The DHS Office of Public Affairs, run by Tricia McLaughlin, funded these contracts. Federal databases don’t show how Safe America Media spent the $143 million or which subcontractors got slices of that money.
The Strategy Group, Personal Ties, and Federal Contract Law
The Strategy Group worked on the Mount Rushmore ad shoot but doesn’t appear on public contract documents. The firm’s CEO, Ben Yoho, is married to McLaughlin, Kristi Noem’s chief DHS spokesperson.
Yoho’s company has deep connections to Kristi Noem’s political operation. He ran advertising for her 2022 gubernatorial campaign in South Dakota.
Corey Lewandowski, Kristi Noem’s top adviser at DHS, worked closely with the firm. Charles Tiefer, a federal contract law expert and former Commission on Wartime Contracting member, called the arrangement corrupt.
“Hiding your friends as subcontractors is like playing hide the salami with the taxpayer,” he said. Federal regulations require contracting to be done “with complete impartiality and with preferential treatment for none.”
Scott Amey from Project on Government Oversight said the situation deserves a look by the House Oversight Committee and DHS inspector general.
McLaughlin claimed she recused herself from decisions involving her husband’s firm. DHS said they don’t control subcontractor selection, though contracting experts point out agencies can require subcontractor approval.
Taxpayer Money for Self-Promotion
The Mount Rushmore ad aired on Fox & Friends. It showed Kristi Noem on horseback warning immigrants while flashing images of Trump Tower and Trump after an assassination attempt.
Similar things happened back in South Dakota. In 2023, Noem’s administration paid the Strategy Group (operating as Go West Media) $8.5 million for a worker recruitment campaign.
A former Kristi Noem official told investigators the governor quietly intervened to make sure Yoho got that deal. The Strategy Group paid up to $25,000 to Madison Sheahan, who served as Noem’s operations director in South Dakota.
Sheahan now holds the second-in-command spot at Immigration and Customs Enforcement.
Key Financial Flows:
- South Dakota state contract: $8.5 million to Go West Media
- Payment to Sheahan: Up to $25,000 for “consulting”
- Federal contracts channeled through Safe America Media: $143 million
Yoho’s firm also got payments from Noem’s American Resolve PAC through February, weeks after she became DHS secretary. The Strategy Group managed her 2024 memoir publicity campaign with Lewandowski.
Personal Enrichment, Ethics, and Leadership Controversies
Kristi Noem’s time in public office has been full of questions about personal financial gain and conflicts of interest involving family members. These issues range from luxury spending with taxpayer dollars to nepotism allegations and deadly immigration enforcement operations.
Personal Spending and Misuse of Public Funds
Noem spent over $60,000 on renovations for South Dakota’s governor’s mansion. The expenses included luxury items like chandeliers and saunas.
She also charged taxpayers more than $640,000 for travel, including trips to Paris, Canada, and Texas. In 2023, Noem directed about $80,000 from the nonprofit American Resolve Policy Fund to her personal Delaware LLC, Ashwood Strategies.
This represented about 10% of donations to the fund. She didn’t disclose this payment on her federal ethics forms when joining Trump’s cabinet, even though the law required it.
The omission raised serious questions about government ethics and transparency. By mentioning the LLC but leaving out the payment, Noem hid income tied to political fundraising.
Conflicts of Interest and Nepotism in Office
Noem intervened when her daughter Renee Good’s real estate appraiser license application was denied. She summoned state employees, her daughter, and officials to the governor’s mansion for a meeting.
Days later, the denial was reversed and the agency head was pushed out of her job. This conflict of interest cost taxpayers $200,000 in a settlement.
A state ethics inquiry followed. The case became a pretty clear example of using executive power for family benefit.
During her time at DHS, Noem’s department awarded $220 million in ad contracts that raised ethics concerns. According to journalist Justin Elliott at ProPublica, one firm tied to these contracts was run by the husband of Noem’s chief DHS spokesperson Alex Pretti.
The company had personal and financial connections to Noem’s political circle, creating potential conflicts of interest in the awarding process.
Handling of Immigration Enforcement and High-Profile Deaths
As Homeland Security Secretary, Noem oversaw Immigration and Customs Enforcement operations that drew bipartisan criticism. Her approach to immigration enforcement included defending controversial tactics that resulted in civilian deaths during raids and protests.
She publicly accused the FBI of leaking details about a planned ICE raid. The FBI denied this and called her statement “deeply irresponsible,” saying no evidence supported the accusation.
The incident hurt relationships between federal agencies. Republican Senator Thom Tillis joined Democrats in criticizing Noem’s leadership at DHS.
The criticism focused on her handling of immigration crackdowns and disaster response failures. These controversies, plus scrutiny over a taxpayer-funded ad campaign and spending habits, led to her firing in March 2026 as the first Cabinet secretary removed during Trump’s second term.
Political Impact, Public Image, and Broader Implications
The revelations about Noem’s financial dealings tanked her standing in Washington and sparked questions about accountability among high-ranking officials. Her firing from the Department of Homeland Security came after she lost Trump’s trust over a controversial advertising campaign and failed disclosures.
Media Coverage and Congressional Investigations
ProPublica’s investigation showed how Noem received $80,000 from American Resolve Policy Fund through her personal company while serving as South Dakota governor. The dark money setup meant donors stayed anonymous.
She failed to report this income on her federal financial disclosure forms when joining the Department of Homeland Security. Congressional hearings focused on her role in approving a $220 million DHS ad campaign that featured her front and center.
The campaign, run through Safe America Media, got slammed for being self-serving while she delayed FEMA funding for disaster recovery. She claimed Trump approved the campaign, but it ended up costing her his trust.
News outlets reported on her spending habits, like wearing a $50,000 Rolex and carrying $3,000 cash in her purse. South Dakota media dug into her use of government credit cards, which led American Resolve PAC to buy Facebook ads attacking the local news outlet.
Effect on Other Women in Power and Public Trust
The scandals swirling around Noem put up new hurdles for other women who want to lead in government. Her choices fed into old, frustrating stereotypes about politicians cashing in on their positions.
Now, political donors get more questions about where their money actually ends up. People wonder if officials are pocketing some of those funds.
Lee Schoenbeck, a Republican attorney and former state Senate leader, said South Dakota law expects the governor to focus full time on official work. He argued that running a private business on the side, especially one the public doesn’t know about, just isn’t right.
The secret deal through her Delaware LLC made folks uneasy about transparency. It didn’t sit well with those who care about ethics in government.
Her memoir, “No Going Back,” brought her a $140,000 advance through the same company that handled the dark money payments. That really muddied the waters between her job as governor and her personal finances.
Transition to Special Envoy and Legacy
Trump fired Noem from her homeland security secretary position after she publicly contradicted him about the advertising campaign.
The end of her DHS tenure came just one day after her Capitol Hill testimony.
She led the agency for only a few weeks, and controversy overshadowed her time there.
Some reports say she might move into a special envoy role, but honestly, nobody’s quite sure what that would actually look like.
Her legacy? Well, she’s one of the shortest-serving homeland security secretaries.
That $220 million in unspent advertising funds stirred things up, especially after California Governor Newsom called for the money to go toward disaster recovery instead.
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