Scott Bessent Confirmed as Trump’s Treasury Secretary \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The Senate confirmed billionaire investor Scott Bessent as Treasury Secretary, marking a historic appointment as the first openly gay individual to hold the position. Bessent faces critical tasks, including extending Trump’s Tax Cuts and Jobs Act, addressing the U.S. debt ceiling, and implementing tariffs as part of Trump’s economic strategy. His bipartisan confirmation reflects cautious optimism despite controversies surrounding unpaid tax liabilities.
Scott Bessent’s Appointment: Quick Looks
- Confirmation: Approved by a 68-29 Senate vote, including 16 Democrats supporting the Republican nominee.
- Historic Milestone: Bessent becomes the first openly gay Treasury Secretary.
- Economic Priorities: Extending Trump’s tax cuts, reducing deficits, and boosting domestic oil production.
- Policy Challenges: Addressing record U.S. debt, implementing tariffs, and maintaining the IRS Direct File program.
- Tax Controversy: Faced criticism for nearly $1 million in unpaid Medicare taxes, currently under litigation.
- Bipartisan Remarks: Some Democrats backed Bessent for his commitment to global financial institutions like the IMF and World Bank.
- Trump’s Agenda: Bessent will spearhead the creation of an “External Revenue Service” to collect tariff revenue.
Deep Look
Billionaire investor Scott Bessent was confirmed Monday as President Donald Trump’s Treasury Secretary, earning bipartisan support in a 68-29 Senate vote. As the nation’s 79th Treasury Secretary, Bessent steps into a critical role that involves navigating Trump’s ambitious economic agenda, addressing soaring debt levels, and managing complex trade policies. His confirmation also marks a significant milestone as the first openly gay individual to hold this position, underscoring the evolving nature of Trump’s administration.
A Historic Appointment
Bessent, a South Carolina resident and former Democratic supporter, has become a staunch advocate for Trump’s economic policies. His confirmation is notable not only for his historic status but also for his balancing act between Trump’s populist base and billionaire business leaders.
“Having Scott Bessent as our Treasury Secretary is a testament to the diversity of perspectives we need to drive America’s economic future,” said Senate Finance Committee Chair Mike Crapo (R-Idaho).
Economic Priorities: Tax Cuts, Deficits, and Oil Production
Bessent’s immediate focus includes advocating for the renewal of key provisions of Trump’s Tax Cuts and Jobs Act, set to expire on December 31, 2025. He has emphasized the necessity of these tax cuts to achieve 3% annual economic growth while also proposing significant reductions to deficits.
Additionally, Bessent aims to increase domestic oil production by 3 million barrels per day, aligning with Trump’s “energy dominance” policy. These priorities reflect a broader strategy to stimulate economic growth while maintaining fiscal responsibility.
Tariffs and the ‘External Revenue Service’
Bessent will oversee the implementation of Trump’s tariff policies, a cornerstone of his economic agenda. Trump has proposed levies of up to 25% on goods from allies like Canada and Mexico and 60% on Chinese imports. To facilitate tariff collection, Bessent will explore the feasibility of establishing an “External Revenue Service,” a new agency requiring congressional approval.
Former U.S. Ambassador Kevin Whitaker highlighted the significance of this initiative:
“The creation of such an agency would centralize tariff enforcement, reflecting the administration’s commitment to maximizing trade leverage.”
Debt Ceiling and Fiscal Challenges
Bessent inherits the Treasury amid mounting financial challenges. The U.S. debt ceiling has become an urgent issue, with the Treasury deploying “extraordinary measures” to prevent breaching the limit. Outgoing Treasury Secretary Janet Yellen warned that these measures could only buy limited time before a potential financial crisis.
Bessent has committed to working with Congress to address the debt ceiling while ensuring fiscal stability. However, the task is complicated by Trump’s push for tariffs and tax cuts, which could widen deficits.
Controversies: Unpaid Taxes and Bipartisan Support
Bessent’s confirmation process was not without controversy. Democrats raised concerns over nearly $1 million in unpaid Medicare taxes tied to his hedge fund partnership. Bessent is contesting the tax liability in court but pledged to pay the amount if the ruling goes against him.
Despite these concerns, some Democrats, including Sen. Chris Coons (D-Del.), backed Bessent for his global financial vision:
“While I disagree with many of his policies, I support his commitment to maintaining U.S. leadership in institutions like the World Bank and IMF.”
IRS Direct File Program and Federal Reserve Independence
Bessent’s testimony before the Senate included a promise to preserve the IRS Direct File program for the 2025 tax season. The program, which allows taxpayers to file returns directly with the IRS for free, has faced criticism from Republican lawmakers who argue it duplicates existing private-sector solutions.
Additionally, Bessent emphasized the importance of Federal Reserve independence, distancing himself from Trump’s history of criticizing the central bank.
Trump’s Outsider Cabinet and Vision
Bessent’s confirmation reflects Trump’s preference for outsider candidates to fill key Cabinet roles. The president also considered billionaire investors John Paulson and Howard Lutnick for the position but ultimately chose Bessent, citing his alignment with Trump’s “America First” agenda.
“Scott Bessent is the right person to drive my vision for American prosperity,” Trump said in a statement following the confirmation.
What Lies Ahead
Bessent faces a challenging tenure as Treasury Secretary, with responsibilities ranging from negotiating tax policies to navigating complex trade dynamics. His historic appointment, coupled with his deep business expertise, positions him to play a pivotal role in shaping Trump’s second-term economic legacy.
However, his ability to balance competing priorities—tax cuts, tariffs, deficit reduction, and debt ceiling management—will determine his success in this high-stakes role. As Trump’s administration continues to redefine U.S. economic policy, all eyes will be on Bessent to deliver results in an increasingly complex global landscape.
