President's FY 2027 Treasury Department Budget Request Hearing

The committee will come to order. I would like to thank you, Secretary Bessant, for appearing before the committee today to discuss the President's fiscal year, twenty twenty seven budget for Treasury Department and the Administration's broader economic agenda. A central part of that economic agenda is driven by the landmark bill enacted by Republicans last year. The Working Families Tax Cuts Act not only provided historic tax relief for working class Americans, but also made permanent critical pro-growth tax policies that are already increasing domestic investment and boosting economic growth. The magnitude of this success today was made possible by the work of the Treasury Department and the IRS in publishing immediate guidance on the new and restored tax policies in the lead-up to the twenty twenty-six filing season. I appreciate all the hard work from Treasury and the IRS and their employees to release that initial guidance as quickly as they did. Doing so provided rules of the road for tens of millions of people claiming at least one Republican's signature new tax cuts, from no tax on tips and overtime to increased tax relief for our seniors. Contrary to the Democrat narrative that the law only benefits the wealthy, these policies were claimed by over sixty million American working class citizens, nearly half of all filers. At the end of the tax filing season, over seven point five million workers claimed the tips deduction. More than twenty-nine million workers benefitted from the no tax on overtime, and more than thirty-five million seniors' tax burdens were reduced, with an average additional deduction for them of over seventy-five hundred dollars. Additionally, over five point five million children have already been signed up for the Trump accounts, in large part due to Treasury's work to implement and promote the program. These savings ac- accounts offer an important opportunity for young Idahoans and children across the country to begin building financial security. Hard-working Americans kept more of their money this tax filing season and millions of people got more money back compared to previous years. Over three hundred twenty billion dollars was refunded to taxpayers an eighteen percent increase from the last filing season. I note that again, an eighteen percent increase from the last filing season. With an average refund of nearly thirty-three hundred dollars, more than an eleven percent increase on average. And even the average refund amount does not tell the whole story. Many working class Americans who owed money when filing in prior years instead received a refund this year. because of the working family's tax cuts. Treasury's initial guidance has also helped the business provisions of the working family's tax cuts, like full expensing for equipment and factories to drive domestic investment higher, productivity higher, and wages higher for American workers. Nearly twenty-six million small businesses now have an increased confidence, thanks to a permanent Pro-growth twenty percent tax deduction. Estimates find that permanence will create one point two million jobs annually, and boost small business GDP by seventy seven hundred fifty billion dollars over the next decade. The permanent restoration of full expensing for U S research and development will support domestic in innovation and growth by large and small businesses alike. To maximize that growth, taxpayers need additional clarity from Treasury and the IRS, so that they can plan and invest with certainty. Issuing final guidance for these tax provisions will provide that certainty and further encourage domestic investment. Implementing the new provisions from the working families' tax cuts was no small task. But the twenty twenty-six filing season proceeded smoothly for tens of millions of Americans. I look forward to hearing from you about plans for successful filing seasons next year, as well as the more work that needs to be done to implement the law and technological investments get get technical technological investments made to more modernize the IRS. Regarding IRS modernization, Ranking Member Wyden and I released the Taxpayer Assistance and Service Act earlier this year. This bipartisan bill, with more than sixty provisions and supported across the tax community, is focused on modernizing the IRS, improving the taxpayer experience, and strengthening taxpayer rights. Many finance committee member priorities are included in the bill, along with a series of long-requested provisions from the tax practitioners as well as the National Taxpayer Advocate. I look forward to advancing this legislation in the very near future and welcome any comments from you on it. Beyond tax administration, I'm hopeful for similar support as we move forward with other priorities with a bipartisan foundation in this committee, such as establishing clear and durable tax rules for digital assets. Mister Secretary, We're very glad to have you with us today and look forward to your remarks. And with that, I turn to the ranking member for his opening statement.

Thank you very much, um, Miss, Mister Chairman, there is lots to work on. Now, colleagues, it was just a matter of time before the Trump administration set the new high water mark for public corruption. That moment arrived a little more than two weeks ago with the settlement of Trump's ridiculous IRS lawsuit. This hearing is the first opportunity for Congress to examine it. So let's start by zooming out to get a full appreciation of how dirty this whole situation has been. Donald Trump sued his own administration for ten billion dollars over a tax return leak that happened on his watch. A judge appeared ready to toss a lawsuit, so Trump rushed a settlement for personal gain. The acting attorney general went out yesterday and said they're not moving forward with the one point eight billion dollar insurrection slush fund. The other part of this settlement apparently remains in place, and that is the part that presents the biggest direct benefit to Trump. Todd Blanch let Trump Trump off the hook for potentially a hundred million dollars in back taxes by cancelling what's reported to be a long-running dispute with the IRS. Then he let the entire Trump family and the Trump organization off the hook for any tax crimes they may have committed in the past. As of right now, everybody in America is subject to audit, except the Trump family. Unfortunately, the Senate Republican leader was quoted this morning saying that this is business as usual. that it's a standard settlement. The reality is that's totally wrong. Two former IRS commissioners have now confirmed that this is completely without precedent. It's the ultimate case of an ultra-wealthy individual living under one set of rules while everybody else lives under another, a crooked double standard that benefits Trump and family. I take it as an admission of his own guilt when it comes to tax cheating. Trump and his family have been stuffing every dollar they can grab into their own pockets. If everything was on the level, seems to me he wouldn't need Todd Blanch to get the IRS office back. Secretary Besant owes the committee an explanation of what the treasury knows about the dirty settlement. That's because his department was involved from beginning to end. Treasury was a defendant and a negotiator in the lawsuit. It was informed by IRS attorneys that Trump had no real case. And it sure looks to me like Treasury's top lawyer quit his job in objection to the settlement. This is an abuse of the IRS that goes way beyond anything that I have any familiarity with. My view is this committee needs to investigate this on a bipartisan basis. Blanche allegedly dropped the insurrection fund doesn't change that. So what's particularly shocking about a corrupt deal like this is it comes when so many American families are feel fearful about the economy.

Yeah.

I was home last week having four town hall meetings in parts of my state that are bright red. And what they to me about was the pain of inflation going up, wage growth going down, the job market flattening. The Trump administration doesn't seem to care. Last week, Secretary Besant was asked during an interview about price increases caused by the Iran war. He said, I quote, " it was less than two hundred dollars in extra gasoline costs. All the Democrats wanna talk about is beef and gasoline." Now to me, you might think that a political leader couldn't get any more dismissive of people's economic concerns. But then Donald Trump topped it himself. When asked if Americans' financial situations made him think about ending the war that he started he said, and I quote, not even a little bit. He continued, I don't think about Americans' financial situation. I don't think about anybody. Mr. Chairman and colleagues, I've never heard a president of the United States talk in such a dismissive way about the hurt of the American people and then he rambled through his ever-changing goals in the quagmire of a war no sympathy for struggling families at all from the president. Americans are increasingly spending down their savings and going into debt to get by. The people running the country are ratcheting up the cost of living with wars, tariffs, and cuts to health care and basic services. It's cold comfort to somebody who had to max out their tax credit card to feed their kids that Trump might get his face on a two hundred and fifty dollar bill. But that's the kind of priority that apparently the Treasury Department is focusing on these days. Even outside of economic matters, the Treasury Secretary is simply out of step with the American people. There's no better example than the fact that there's been a cover-up of the massive file of Epstein's financial records for a year and a half. This is part of the effort I've made, it's the only one, to follow the money in the Epstein situation, and yet there's been a denial of access to committee investigators and lying in public about their significance. That subject alone deserves its own hearing. Senate investigators are trying to figure out who paid Epstein for girls and unfortunately Secretary Besant is involved in preventing that from happening. The bottom line in this administration is the machinery of government works to the benefit of Donald Trump before all else. That's the corrupt framework that pro- that produces insurrection slush funds protects pedophiles and dismisses the concerns of people who are worried about being able to make rent and to feed their families. There is an awful lot for the committee to discuss today. I'm Mr. Chairman and uh I look forward to the question and answers. Senator Crapo.

Thank you, Senator Wyden. Secretary Besson, you may make your opening statement.

Chairman Crapo, Ranking Member Wyden, and members of the committee. Thank you for convening today's hearing. I'm grateful for this opportunity to discuss President Trump's twenty twenty seven budget, which builds on this administration's progress in unleashing a new era of economic expansion.

Could you could you pull the microphone a little bit closer?

Sure. I last appeared before this committee just a few weeks before the Senate passed the working family's tax cuts. So on the heels of the most successful filing season in IRS history, I'd be remiss if I did not begin by thanking the committee for helping to deliver this once in a generation bill to the president's desk. This day, under President Trump, we celebrated how much more money hard-working Americans kept, not how much the government took. Over sixty-two million tax returns claimed at least one of the president's signature new tax cuts. No tax and tips, no tax and overtime, deductibility of American car loan interest, and enhanced deduction for low and middle income seniors. All told, the average refund increased by over eleven percent, with refunds increasing by eighteen percent. But as important as what this legislation achieved is what it prevented. If opponents of the working family tax cuts had their way, our economy would have absorbed the largest tax hike in its history, over five trillion dollars. Ninety percent of American taxpayers would have seen their standard deduction slash while forty million families would have seen their child tax credit halved. Instead, this committee held the line and the American people had a better tax day because of it. Notably, President Trump's pro-growth policies don't stop at putting more money back in the pockets of working middle class families. They extend to placing the American dream within the closer reach of their children. For context, nearly forty percent of Americans have no exposure, to our great US equity market. No stake in the companies, they help to build. Trump accounts represent a profound imagining reimagining of that arrangement. They will ensure that every American child can benefit from private ownership and compound growth, that every American child in short is born a shareholder. To date, nearly six million Trump accounts have been opened, with one point four million eligible for the thousand dollar seed contribution. Of course, as his tax cuts deliver relief for working class Americans, President Trump's economic agenda is bolstered by two other distinct but reinforcing levers, trade and deregulation. Let me briefly address both in turn. First, the President is undeterred in his determination to open markets for U. S. goods and services while rebuilding U. S. manufacturing capacity. Over the twelve months ending March twenty-six, the Trade deficit for goods declined by approximately three hundred and seventy billion dollars compared to the same time frame ending March, twenty twenty five. The economy has added three hundred and thirteen thousand net private sector jobs and thirteen thousand manufacturing jobs in the past two months. From capital expenditures rose at an annual rate of over seventeen percent in the first quarter, and companies are investing trillions to build and expand here at home. American industry is winning again to the benefit of American workers. A whole of whole of government approach, meanwhile, is coupling our manufacturing revival with a great regulatory reset. Properly calibrated regulation is essential for economic growth, capital formation, employment, and higher wages. So at the outset of this administration, President Trump set the ambitious ben benchmark of slashing ten existing regulations before issuing a single new one. In twenty twenty five, we shattered the goal with a ratio of a hundred and twenty nine to one. As a result, the regulatory actions generated more savings last year than in those of the prior Trump administration combined. Separately, any one of our initiatives on trade, tax cuts and deregulation would be substantial. Taken together, they are transformative. Before President Trump took office, our trading partners exploited America's markets, our regulatory states, mother businesses, and our tax code was poised to punish workers and job creators. Today his policies are driving lower taxes, bigger paychecks, and broader prosperity. So I thank you on this committee for its partnership in this critical work, and I look forward to building upon our stride through the President's budget for the year ahead. Thank you. And I do want, I had hoped to keep this the in turn the uh in terms of the economy, Senator Wyden has mendaciously slandered the treasury building in an attempt to cover up his son having an investment meeting with Jeffrey Epstein to ask for funding. Thank you.

Mr. Chairman.

Yes.

Let's be clear here. Nobody is interested in the ramblings of a capo in the most corrupt regime in American history. We wanna get some facts about this deal. That's what we're here for. Thank you.

Well, thank you, and I will uh ask my questions first today.

A- and we we would like to hear what Adam Wyden and Jeffrey Epstein talked about. Your son's largest investment position was Rick's cabaret. So did your son and Jeffrey Epstein talk about pole dancing? As he begged him for money using your limited credibility.

Should I just proceed?

I'm going to proceed with my questions and uh, Mister Secretary, uh, I'm gonna start with regard to the issues that Senator Wyden raised. There have been a lot of accusations about the settlement agreement between the President and the IRS over the leak of his tax returns. On Monday, the Department of Justice announced that it would abide by the District Court's ruling in joining the creation or operation of the anti-weaponization fund. that was established under the settlement agreement. Yesterday, Acting Attorney General Todd Blanch announced at a hearing that we are not moving forward with the fund, period. With respect to other parts of the settlement agreement, I'd like to give you the opportunity to set the record straight. Understanding that there is ongoing litigation, what can you share with us about Treasury and the IRS's role in the settlement agreement? Specifically, since IRS CEO Frank Bisignano signed the settlement agreement, what can you share with us about Mister Bisignano's role in reaching that agreement?

Thank you for the question, Mr. Chairman. As we have done throughout this matter, the Department of Treasury is following the direction of the Department of Justice. And as you noted, Acting Attorney General Todd Blige testified yesterday that the government will not be moving forward with the fund. We intend to comply with that direction. I do not have any additional details into what that means at this time, but I will note that even with the Acting Attorney General Blanchett's statements yesterday, this matter is still subject to ongoing litigation, so I'm unable to comment further on it. As with all department litigation, the Department of Treasury and the IRS were represented by the Justice Department, so any additional questions about the settlement or the fund to be addressed to the Justice Department and Attack Acting Attorney General Todd Blige. Thank you, Senator.

Alright, thank you. With regard to the working families' tax cuts, affordability remains top of mind for families across this country. Last summer, Republicans acted to prevent what would have been the largest tax increase in American history, and delivered meaningful pro-growth tax relief through the working families' tax cuts. Providing much needed support to American workers and families. Can you talk about Treasury's work so far to implement this groundbreaking tax relief? And what parts of the law do you view as the most helpful in addressing affordability issues?

Thank you, Senator. Uh, since the working family's tax cut was passed in record time on July fourth, uh, I would describe the benefits the as a barbell on one side, We have seen for American business, immediate the immediate expensing of capital goods and factories, which have led to more jobs and construction jobs. The on the other side, we have seen the President's signature policies, no tax on tips, no tax on overtime, reduced taxes on social security, and deductibility of American-made uh cars on the loans for those. Ninety-nine percent of the filers claiming any of those four deductions had incomes under two hundred thousand, ninety percent had incomes under a hundred thousand, we saw record tax refunds and we are not able to measure the delta in the refunds because we can only calibrate someone who had gotten a refund the year before. So that we cannot calibrate if someone had paid in. And as I have traveled acro- across the country, many people have said, paid a substantial amount last year, I've gotten a very large refund this year, and I think very importantly to the certainty that our small businesses have gotten.

Thank you. The Senate Finance Committee is engaged in productive bipartisan discussions on the taxation of digital assets. As the digital asset industry continues to grow and evolve, there's an increasing need for durable common sense rules of the road that provide certainty for taxpayers. support innovation and help ensure that the United States remains competitive in the global digital markets. Does Treasury support congressional efforts to develop comprehensive digital asset taxation? And in your view, what are the risks of continued inaction? Both in terms of taxpayer compliance and America's ability to remain competitive in the rapidly growing digital asset economy.

Uh, Senator, since President Trump issued uh his executive order, Treasury has been working tirelessly uh to implement the action on digital assets. We saw Congress pass stable coin legislation, clarity uh act which I would encourage the everyone to get behind, it's very necessary to bring US ba best practices on shore, and we work tirelessly in terms of uh custodying these assets and keeping them making the US the innovation capital of the world.

Thank you very much. My time has expired and I encourage all my colleagues to note when their time expires, we wanna keep moving expeditiously. Senator Wyden.

Thank you very much, uh, Mr. Chairman. Secretary, yesterday, Acting Attorney General Todd Blanch indicated that the administration is not moving forward with the slush fund. But there's been no indication of what this means for the Trump alleged IRS audit immunity. So my first question is, does the IRS audit immunity given to Trump His family and his businesses still stand.

Um

I'd like a yes or no answer to that.

Uh, you can answer the question and you can tell me how to answer it. So, the uh, I have this account.

I got five five minutes. I'm gonna use them for these questions.

Hey, what you're using up your time now, sir. Uh, as I said, I'm unable to comment with the ongoing litigation.

OK. So that we understand what's at stake here. This immunity deal is the biggest scam against the taxpayer in American history. And Americans are gonna pay taxes, and Trump and his clan won't. So we'll start with that. Now, my second question is, every president's tax return gets audited, Mister Secretary. Who originated the May nineteenth addendum cancelling Trump's audits? Was it Trump, DOJ, or Treasury?

Uh, ag- against or as Albert Einstein said, the doing the same thing and expecting a different answer. is the definition of insanity.

You've given no answers on this subject and that's why I'm gonna ask these questions.

And and and because as I said there's ongoing litigation.

Does the DOJ does the d- does the DOJ have the authority to settle a tax dispute unilaterally?

Uh the DOJ acts as the attorney they afford treasury and the IRS.

So the tax code says the DOJ can only settle a tax dispute if you, the treasury secretary, first deferred the dispute to DOJ in the case we're talking about. So here, Trump, his kids, all of the business entities they own, potentially thousands of tax returns, and unless you referred every single one of those tax returns to DOJ, the addendum is invalid, where the Treasury and the IRS believe have have been more involved in this scandal, as far as I can tell, than you've led us to believe. So I'm gonna keep digging into the time table here. Career IRS attorneys wrote a twenty-five page memo preparing defenses against Trump's lawsuit, and they recommended DOJ move to have Trump's lawsuit dismissed. The IRS reportedly gave this memo to treasury officials in April before the settlement. Did you see that memo?

Uh, ag again, uh, there's continuing litigation and I'm unable to answer.

Will you provide this committee with a copy of the IRS memo?

Uh, again, there's continuing litigation.

Mister Chairman, I'm gonna continue my questions, but I would like to ask you now to authorize a sixty one O three waiver and for Mister Besson to waive the attorney-client privilege which I guess is part of what he's up to.

I I will not I'm not quite sure what you're asking, but I will not agree to ask him to to uh waive his attorney-client privilege.

It's the way we're gonna get to the bottom of it is to have the committee look at these matters in a bipartisan way and I'm gonna Gonna continue with the questions that highlight my argument. The Biden administration prosecuted Charles Littlejohn, the Booz Allen contractor who leaked Trump's tax returns. Booz Allen, which helped with the prosecution, he held contracts with the treasury department for years. Three days before Trump filed his lawsuit this year, you abruptly cancelled all the contracts. It is hard to see that timing be a c- coincidence. Did you know in advance that Trump was gonna file a suit against the IRS?

I did not.

Alright, I've written to you twice asking for records related to this decision. Both times you refused. I'll ask again. Will you send the committee all records documenting this decision so we can review this in a bipartisan fashion?

I ag- again there there is ongoing litigation and Senator Howey got here was a violation of President Trump's sixty one O three rights and it wasn't just President Trump. four hundred thousand tax returns that were they leaked by mister little john and i will point out that mister little john was not prosecuted to the fullest extent of the law the biden he was eligible to be prosecuted on three counts the biden administration chose a light touch and only prosecuted him on two counts

we're gonna continue these questions and uh i come back to my point uh mister chairman we need you to support the sixty one O three waiver so that this committee on a bipartisan basis can look into a matter like this. You're talking about the president of the United States. It doesn't get any more important. And I'll just close my uh opening effort to try to ferret out the facts here, Mister Chairman, by saying, Mister Secretary, this whole settlement in my view is the most brazen abuse of power ever in our history. And as of now, every American is subject to audit except Donald Trump and his family. I think that's absurd, and you've been dodging questions. Each one of these you had a legal argument for saying nothing. And I suspect you cleared the way for Trump's lawsuit when you cancelled the contracts and I suspect people right up to the highest level of the treasury department had a hand in crafting this unbelievably corrupt gift of a settlement. And I just want an understood colleagues, I wanna work with every senator on this committee to get to the bottom of this because we aren't getting the facts and the secretary in spite of the fact that he owes answers to the American people is just dodging and bobbing and weaving. Thank you.

Senator Grassley.

I'm gonna start first with a comment and a commendation to the department. Uh in regard to a program that Senator Wyden and I have been involved in. And I think the department's doing the right thing, but I think you're getting pressure to change. So I wanna commend you and the IRS for protecting the integrity of the conservation easer deduction by holding those engaged in abusive syndicated conservation easements hold them accountable. These abusive transactions generally rely on highly inflated appraisals that result in taxpayer investors saving two dollars in taxes for every one dollar spent. So to be perfectly clear, these arrangements perverted a charitable deduction to turn a significant profit. In twenty twenty, finance committee report that details Senator Wyden's and my investigation of these ar- arrangements clearly shows that both the promoters and the taxpayer investors understood them to be tax shelters. So, I encourage you and the IRS to stand by recent settlement offers and ignore those who I think are lobbying you to water it down.

Good. Thank you, thank you for your comments, Senator.

Uh, in nineteen eighty-one, at the time of growing deficits and elevated inflation, Fed Chairman Paul Volcker advised Congress to cut spending and to pursue crow growth policies. He urged Congress to focus on reforms that would incentivize Americans, in his words, to invest, to save and to work. The working family's tax cut law adhered to the Volcker approach. It reduced spending, By over one trillion dollars while making provisions of the twenty seventeen tax law focused on spur. Spurring domestic investment permanent. Like full expensing for new factories and factory improvements. How important has the working family tax law been? In terms of promoting economic growth, job creation and wage growth.

Senator, it has been essential to the success that we have seen. Uh, for the past four quarters, the US economy has grown at two point six percent. And that is despite the democratic government shutdown in the fall. And that is despite the Iranian conflict, which will make our country safer. And what we are doing, uh, on the household side, as I said, The almost fifty percent of the tax returns we received had one of the president's four signature policies. On the other side, the pro-growth, the tax policy for our corporations, immediate expensing of capital equipment, of structures, including farm structures, and the a hundred percent expensing for R and D and certainty, Senator. It is the certainty that allows both big and small businesses to be able to plan for the future for hiring for capital expenditures and it is this capital stock and investment that generates high after-tax returns and increases productivity and if productivity increases or what increases real standards of living sir

this will have to be my last question you've been a proponent of targeting annual deficits of three percent of g d p which roughly aligns with the post-world war two average. During the last two years, the Biden administration, we saw a deficit of six point two percent and six point three percent. In twenty twenty five, President Trump first year in office, a deficit came in at five point eight percent of GDP. How does President Trump's budget and deregulatory agenda ensure the annual deficit stays on a downward trend? towards that three percent that you advocate.

But Uh, Senator, as I said all the way back as far as my confirmation hearing, uh, we do not have a collections problem, we have a spending problem, and we have a growth problem. So if we can constrain spending and grow our economy, then the we have the ability to pay it on debt, the and get back to the three percent target, which I believe that we can achieve something with a three in front of it. by the end of President Trump's term.

Thank you.

Senator Warner.

Thank you, Mr. Chairman, Secretary Besant, good to see you again.

Good morning, Senator.

Um. Yesterday, um, the administration took an action that again I I thought I could no longer be surprised. But I was surprised. Uh, the president put in Bill Polity as the director of national intelligence. Now, i know it's not your area but the the whole wall that was set up establishing the director of national intelligence was to make sure the disposition was filled by a someone a great deal of national security experience uh mister polte currently is within your domain do you know does mister polte even have a security clearance

uh senator i i do not

ok in being head of the fhfa Isn't that a full-time job?

Uh it's it's a very important position.

Yeah. So the notion that Bill Polity is gonna remain as head of the FHFA, and Moonlight as the director of national intelligence, uh I I don't understand, but to me it sound it seems insulting to the thousands of men and women who work in the intelligence community. Um Again, Mister Polity reports to you

uh no it's an independent administration i i

well but within within or let me just ask or let me ask you this how would you um describe mr. polti's temperament

uh i spoke with director polti yesterday and congratulated him and said i look forward to continue working with him on fhfa matters and wish him luck the as he gets up to speed in dni and told him that we had several pressing issues on iran

so you're very you're totally comfortable with the notion that mr. polte who i at least in press reporting you've had quite a number of differences with is gonna be able to do both the director of fhfa and the director of national intelligence

well sir many teams squabble in the locker room and go out in the field

ok well mr. polte has had an a record of not respecting confidential information, he has weaponized mortgage information. Think everyone would at least acknowledge the factual basis of that, and the idea that he is going to suddenly be given the keys to the most classified secrets that keep our country safe. I just would have wished that someone in the white house would have gone to the emperor and said, on this one you got no clothes. And it's it's an embarrassment let me get to another topic um agentic ai you know i i'm i think i think there's great promise from ai there's also downsides but as we think about agentic ai agents i'm saying letters on this i think we need a strong fiduciary regime around those agents i mean when Mike said to me recently if your agentic ai agent goes off and buys a bunch of retail stuff for you and you get it home and then human being says, I don't want this stuff. Who bears the burden? As you think about you know the notion when we've talked about this in the past of, a gentic ai agent do you believe that we need some level of strong fiduciary regime?

The the president's executive order yesterday, I think strikes a very good balance between innovation and safety because that is a calculus we are trying to optimize for. i've been in contact with all the uh large language model labs i was in san francisco on saturday meeting with them and we have convened a treasury we have convened uh the largest banks and they are working uh diligently they uh on their standards because uh by their nature they have the the strongest cyber security departments i think that the rest of industry can learn from them

um again we may agree to disagree in the notion that is simply voluntary regime fiduciary duty would imply some duty i've talked to many of the banks they think with mythos they are totally unprotected and the idea that we're going to have only a voluntary regime i believe will put our banking system at risk clearly our national security at risk and i felt like the president's earlier draft made a lot of sense i was very disappointed it was it was a watered-down and adhered to the

senator the the only difference in the draft was ninety to thirty days

chairman's such a well the draft i saw earlier had a stronger than strictly voluntary machine but the i wanna get my last point in quickly we still gotta get the cdf i money out we got thirty two Senator, sixteen on each side, including the chairman. You know, the money is sitting there. It needs to get out.

Uh, yes, sir, that we have gotten out what we have been allocated uh from OMB. OMB did not apportion it until April eighth. Uh, and we are getting that funding out.

It's shown it still hasn't awarded a single dollar of the money.

Thank you, Senator Scott.

Thank you, Mr. Chairman, Secretary. Thank you for taking some time to be here with us today. Good to see you again.

Good to see you, Senator.

Hope you're well.

Hope all is well in Charleston. I don't get back much.

Well, we miss you there, so it's the final way back to the Holy See. We need to see you more often. Let me just uh first say to you and and particularly to your staff as well, on the issue of home ownership, as you know, we worked in the banking committee for a long time on the twenty-first century road to housing. Uh, your team has been fantastic to work with, and frankly this is an issue that is not a Republican issue or a Democrat issue. uh every member of the democrat side of the aisle as well as republicans work together hand in glove to make sure that we keep america's priorities first and that makes twenty twenty six the year of affordability your team has been fantastic to work with on the issue of housing so i wanna say thank you on that one number two i will have a question for the record around an issue of forty five why clean electricity production tax credit is an issue that i would love to get a response from you not now but later on but i do wanna ask you a question Uh, Mister Secretary, as you know, economic security is national security. And the Treasury Department plays a critical role in the United States national security apparatus. With the emergence of digital assets, I was curious if you could touch on the Treasury's role in fulfilling President Trump's executive order that set up the Bitcoin, strategic reserve and digital asset stockpile. Could you give me an update on where things stand with the implementation of the executive order?

Yes, sir. And I couldn't agree uh more with you that economic security is national security. I gave a speech at the Reagan library uh outlining my thoughts on that and how for twenty-five years the US has been asleep and under President Trump's leadership, uh we are uh moving forward very quickly on that. And part of that is our digital assets initiative. Uh the strategic bitcoin reserve uh is something uh this is new technology this is new ground we are proceeding the with all deliberate speed and we are making sure that as we are doing this in this complicated process that we use best practices and things will be durable for the future i look forward to working with you and your team on that and i look forward to the clarity act being passed this summer

absolutely great thank you another question on ira accounts President Trump signed another executive order, nuh fourteen four zero three, to increase America's Americans' access to IRAs for those workers who lack s- employer-sponsored retirement plans. Also the order directs you to prepare legislative recommendations for building upon the Trump IRA dot gov. Do you have a a a timeline, something in mind that would be helpful for us to appreciate as relates to perhaps a Trump accounts two point O?

Uh, so sir, we have the the launch of Trump accounts on July fourth

Oh good.

and we are consumed with with that so they they will be in July fourth is Saturday they will be in uh trading and go live on July sixth and then we will be laser focused on the IRA accounts directly after that.

Excellent. I do think it's important for us to take some time on the finance committee to recognize one of the more important issues facing the American people as relates to those half our workers do not have access to, maybe not quite half our workers, but a significant portion of our workers do not have access to an IRA. And frankly, having this focus from the administration I think is powerful and important, and recognizes the importance of making sure that everybody has a chance to accumulate equity in this country, which typically comes through either home ownership, business ownership, or an equity position in the stock market. This approach provides access to that opportunity and, speaking of opportunity, Uh, as you know, it would probably be just inappropriate and shocking if I did not mention opportunity zones, cuz I do every single time I I I see you, because I do think it's one of those consequential pieces of legislation that has a generational impact in a positive way for the poorest communities in this country. Uh, governors across the country are right now currently working uh on figuring out where they want the designations within their states on this ten year new window. I'd love to have an update from you as it relates to uh the streamlining the opportunity zone nomination process as well as if there are any uh best practices that governors should take into consideration that you have become aware of, it'd be great to hear.

Uh yes Senator, and and as a reminder, every Democrat voted against opportunity zones.

Thank you.

Um so and what was especially great about this bill is it expanded uh created stronger rural Opportunity zones. So that is part of our guidance uh to the states. Uh, treasury is engaging with state officials ahead of the not next nomination round. And we're working to provide transition guidance so that investors will have the clarity they need to keep putting capital work in the communities that need them the most.

Well, Mr. Chairman, I know I have two seconds left, so I'll use those two seconds pretty quickly here. I here's a bipartisan piece of legislation I supported by my friends on the other side, but every mayor that I've run into around the country, Blu R red, love opportunity zones. Thank you.

Yes, and Senator, uh, several of your colleagues from the other side of the aisle have called me because they were distressed that their state may be losing an opportunity zone, and I pointed out that they voted against them, but because of your good will, we will be working with them.

God bless you.

Yes.

We all love opportunity zones. Senator Haslam.

Well, thank you, Chair Crapo, and Ranking Member Wyden for holding this important hearing. Uh, good morning, Secretary. Bessington, thank you for testifying.

Good morning.

Um, I wanna start with a question, um, that I think should get bipartisan support. The Treasury Inspector General for Tax Administration recently said that the Treasury could prevent a billion dollars in fraud if Congress moved up certain deadlines for businesses to file information returns. This would help give Treasury the information it needs earlier in the year, to stop fraudsters from stealing identities and their tax refunds. Will you commit, sir, to working on a bipartisan basis with members of this committee to advance this proposal and help the treasury stop identity theft and fraud?

Uh, we look forward to working with uh with both sides of the aisle on that, Senator.

Thank you very much. Um, and just an observation, Mister Chair, there's been discussion of a so-called settlement of a lawsuit uh between the President and the IRS I just wanna note that the so-called settlement is being challenged because of collusion, it appears, by the President and the IRS to the point where I'm not sure settlement agree agreement actually exists because the court is considering whether this is a legitimate lawsuit to begin with but what the Acting Attorney General did say yesterday was that despite the slush fund being off the table at least for now uh that the grant of immunity

Yes.

president and his family still was going to be on the books. So, um, this is a sweetheart deal for the president. It apparently is still going forward, unless a court puts a stop to it. And I think it's gonna be important for, uh, the secretary to level with the American people about how much this sweetheart deal will cost them. Some news reports suggest it's at least a hundred million dollars, uh, just off the top. Now, secretary Besant. In May the president said that he does not think about Americans' financial situations. Do you think about the financial situation of the American people?