WASHINGTON — On Monday, the U.S. Senate voted to confirm billionaire investor Scott Bessent as the Treasury Secretary under President Donald Trump, an appointment that comes with the challenging task of balancing tax cuts, reducing deficits, and implementing a tariff strategy that fosters economic growth.
Bessent’s confirmation passed with a 68-to-29 vote, which included support from 16 Democratic senators, marking him as the 79th Treasury Secretary in U.S. history. He also becomes the first openly gay individual to hold this position, reflecting an effort by the Trump administration to pursue an innovative policy agenda that caters to both affluent business interests concerned about regulation and a populist base eager for government advocacy.
Once a Democratic supporter and a former employee of George Soros, Bessent has since expressed strong backing for Trump. He has warned that without renewal of critical components of the Tax Cuts and Jobs Act, which are set to expire at the end of 2025, the U.S. will face severe economic challenges. A significant aspect of his role will involve negotiating an extension of these tax cuts, all while he aims to achieve 3% annual growth, reduce deficits, and boost domestic oil production by 3 million barrels per day.
Following the confirmation, Republican Senator Mike Crapo of Idaho, who chairs the Senate Finance Committee, described the vote as “one of the easiest” decisions they could make. However, Bessent’s confirmation was not without controversy, particularly concerning allegations of unpaid taxes.
Democrats have accused Bessent of avoiding nearly $1 million in Medicare taxes tied to a limited partnership in his hedge fund. He disputes this tax liability and is currently engaged in litigation to resolve the matter. During his confirmation hearings, he assured lawmakers that he would settle the tax bill if the court ruled against him. Some Democrats, such as Senator Chris Coons of Delaware, expressed support, albeit with reservations regarding Bessent’s stance on tax cuts for affluent individuals and Trump’s tariff policies.
Coons noted, “While I disagree with many of his policy positions, particularly his support for extending tax cuts for the wealthy and President Trump’s tariff threats, I hope that he will focus the Treasury Department on bringing down costs for middle-class Americans.” He also endorsed Bessent’s intention to continue U.S. investments in international financial entities like the World Bank and the International Monetary Fund.
Trump took considerable time before settling on Bessent, previously considering other wealthy individuals, including John Paulson and Howard Lutnick, whom he appointed as commerce secretary. The Treasury Secretary’s roles include advising the president on fiscal policy, managing public debt, and being part of the National Economic Council.
A key responsibility for Bessent will be to explore the viability of an External Revenue Service aimed at collecting tariff revenue from foreign nations. This concept was recently announced by Trump on Truth Social, though it would necessitate congressional approval. Tariffs have become a focal point of Trump’s economic policies, with threats of imposing a 25% tariff on goods from allies like Canada and Mexico and up to 60% on products from China.
Additionally, Bessent will face the challenge of navigating a record U.S. debt. In her final weeks in office, outgoing Treasury Secretary Janet Yellen cautioned congressional leaders that extraordinary measures would be implemented to avoid hitting the debt ceiling. Recently, the Treasury Department enacted such measures.
With Trump resuming his presidency and his party holding majorities in Congress, his choice of Cabinet members, often viewed with skepticism, is moving forward largely without significant opposition from either political side. During his confirmation process, Bessent vowed to uphold the IRS’ Direct File program, which allows taxpayers to submit their returns electronically and free of charge, at least for the 2025 tax season starting January 27. Although Republicans criticize the program as unnecessary given existing free filing options, these alternatives remain unpopular among users.
Furthermore, Bessent emphasized his belief that the Federal Reserve should operate independently of presidential influence and advocated for more stringent U.S. sanctions against Russian oil.
