The Senate confirmed Scott Bessent, President Donald Trump’s nominee for Treasury secretary, despite criticism levied by Democrats for his handling of self-employment taxes tied to ownership of his hedge fund Key Square Group.
Bessent is poised to be a key player as Congress faces down more than $4 trillion in expiring tax cuts at the end of this year, which he warned during his confirmation hearing would have “devastating” consequences if allowed to lapse.
The expiring tax cuts, and whom they would benefit, monopolized debate at Bessent’s Finance Committee hearing, as they are likely to dominate discourse on the Hill for the remainder of this year.
As Treasury secretary, he’ll have a critical role in global finance and managing the U.S. debt load, in addition to tax policy. Bessent at his hearing also emphasized the need to cut government spending and defended Trump’s vow to impose across-the-board tariffs on imported goods.
Bessent, 62, will become the nation’s first openly gay Treasury secretary and the highest-ranking LGBTQ government official in the country’s history.
The 68-29 vote, which drew substantial Democratic support, also makes Bessent the first Cabinet official to be confirmed in a role that isn’t central to U.S. national security and foreign policy, though Treasury has a hand in some aspects of both.
“He brings a wealth of private-sector experience in the economy and markets to his new role, as well as a concern for the needs of working Americans,” Senate Majority Leader John Thune, R-S.D., said on the floor Monday before the vote.
Senate Finance Chairman Michael D. Crapo, R-Idaho, during the confirmation process similarly praised Bessent’s character, demeanor and experience, while defending him from Democratic attacks about the nominee’s handling of his taxes.
[Finance Democrats seek assurances from Bessent on taxes ahead of vote]
A memo prepared by Senate Finance Democratic Finance staff accused Bessent of avoiding more than $900,000 in self-employment taxes related to his hedge fund, and taking additional deductions staff deemed questionable.
Trump administration officials and Crapo argue Bessent paid all taxes due under current law and that his tax returns were prepared in line with advice from top law and accounting firms.
Still, Senate Finance ranking member Ron Wyden, D-Ore., and other Democrats sought to draw a parallel between Bessent and a tax system critics say has one set of rules for the wealthy and another for everyone else.
Bessent took the position that as a limited partner in the fund under state law, he was not liable for taxes on certain income earned through the fund, according to the Democratic staff memo. That position would put him out of step with the position the IRS and Treasury have taken in court, Wyden said on the floor before the vote.
“It also raises the question: is he going to change Treasury’s position on this issue, enriching himself and other Wall Street billionaires? Or will the Treasury and the IRS continue to enforce this policy for all the taxpayers in this country except the sitting Treasury secretary?” Wyden said. “It would be a huge double standard, a major conflict of interest if he’s confirmed.”
According to Bessent’s financial disclosure, the hedge fund manager’s net worth appears to be in the $700 million ballpark, though it could be significantly lower or higher since only a range is provided.
The Finance panel reported Bessent’s nomination to the floor on a 16-11 vote, with two Democrats — Maggie Hassan of New Hampshire and Mark Warner of Virginia — joining all panel Republicans in support.
Bessent then easily cleared an earlier procedural hurdle Saturday on a 67-23 vote, when 15 Democrats voted with all Republicans present to invoke cloture. The same number of Democrats, plus independent Angus King of Maine, who caucuses with the party, voted to confirm Bessent on Monday.
The South Carolina native beat out several other potential candidates for Trump’s blessing, including Howard Lutnick, the president’s nominee for secretary of Commerce, after coming under scrutiny for ties to liberal megadonor George Soros. Bessent rose to chief investment officer at Soros Fund Management before starting his own firm.
Victor Feldman contributed to this report.
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