Scott Bessent, The billionaire money manager from South Carolina took questions from members of the Senate Finance Committee including Kansas U.S. Senator Roger Marshall, during his confirmation hearing Thursday.
On social media Marshall wrote, "Scott Bessent, our next Secretary of Treasury, is committed to delivering prosperity to all Americans, including in small-town America."
Before the hearing began, Bessent walked around the room shaking hands with senators before being seated.
Republican Senate Finance Committee Chair Mike Crapo opened Bessent’s confirmation hearing, telling him: “It’s clear you followed applicable law and provided thousands of pages of documentation that substantiate your positions.”
“President Trump made an excellent choice in nominating you for Secretary of Treasury,” Crapo told Bessent.
Democratic Sen. Ron Wyden says voters won’t get the change they voted for in Bessent or Trump
“In a Trump economy, the winner’s circle is small,” Wyden, a ranking member of the committee said in his opening statement.
To bring in revenues, Wyden said the Trump administration “will be offering across the board tariffs,” he said “trillions of dollars in new taxes paid for by working Americans.”
Wyden brought up the IRS’s new Direct File system — where taxpayers can file their taxes directly to the IRS for free — and the threat it faces to be defunded.
“The software giants want Direct File killed. Republicans are on their side, so they might get their way. It could cost American taxpayers hundreds of millions of dollars this year alone,” he said.
Bessent talked about his background, growing up in South Carolina and getting involved in finance
“We must work to get our fiscal house in order,” Bessent said in his opening statement. “As we begin 2025, Americans are barreling towards an economic crisis towards year end.”
He called for an extension of the Tax Cuts and Jobs Act.
“For too long, our nation has allowed unfair distortions in the international trade system,” he said.
Sen. Wyden’s first question to Bessent was about the future of the Direct File system
Wyden asked him if would preserve the program, adding that millions of taxpayers would be eligible for it.
“Will you commit to keeping Direct File up and running?” Wyden asked.
“I will commit for this tax season that Direct File will be operative,” Bessent responded. “If confirmed I will consult and study the program.”
Bessent says the nation has a spending problem
Sen. Chuck Grassley brought out a poster that argues “revenues are historically steady regardless of marginal tax rates.”
Bessent responded: “We do not have a revenue problem in the U.S. we have a spending problem.”
Sen. John Cornyn asks about US investments in China and Bessent’s view on transparency requirements
The Treasury secretary serves as the chair of the CFIUS committee which screens foreign investments inside the U.S. as well as U.S. investments in China.
Bessent said China “has the most unbalanced economy in the history in the world,” and “we should have a very rigorous screening process for anything that could be used, in AI, quantum computing, and chips.”
Bessent says Social Security and Medicare funding ‘would not be touched’
Republican Sen. Bill Cassidy, who’s co-sponsored a bipartisan bill related to preserving the solvency of Social Security, asked whether Bessent would touch Social Security or Medicare funding.
“Those would not be touched,” Bessent said. “One of the tragedies of the blowout of the budget deficit is we need to get our short term house in order.”
The Biden administration’s sanctions on Russia aren’t aggressive enough, Bessent says
“The tragedy going on in Ukraine is one of the greatest tragedies of my adult life,” Bessent said.
He said the Biden administration’s sanctions weren’t strong enough.
“I believe the previous administration was worried about raising U.S. energy prices during an election season and I’m perplexed to see National Security Advisor Jake Sullivan on his way out the door raising the sanctions level on Russian oil companies.”
Bessent asked if he believes the Federal Reserve should be independent
In response, Bessent: “Of course and I actually believe the notion that I said President Trump should have influence comes from a highly inaccurate WSJ article.”
Asked by Republican Sen. Todd Young about conducting an impartial review of the Nippon Steel deal, Bessent said: “President Trump has also most recently spoken out against the deal.”
“It is currently in litigation. If it reappears, CFIUS will conduct the same review it always does.”
Would Bessent recommend cutting Medicaid?
When asked whether he’d recommend cutting Medicaid, Bessent stammered slightly and said “I am in favor of empowering states. In some states that will be an increase and some states that will be a decrease.”
Asked whether he would recommend cuts to Head Start, Bessent declined to answer and said “I don’t understand the budget ramifications.”
Sen. Bernie Sanders asks Bessent about Biden’s claim of an oligarchy
Democratic Sen. Bernie Sanders, a new member of the Senate Finance Committee, asked Bessent about wealth inequality and started with a speech about the concentration of ownership of the media and the information Americans receive.
“Would you agree with President Biden that an oligarchy is taking shape in America?” Sanders asked.
“The billionaires you listed make the money themselves,” Bessent said. “I would note that President Biden gave a presidential medal of freedom to people who qualify” for Biden’s definition of an oligarch, Bessent added.
For the first time in the hearing, Bessent’s sexual orientation is brought up
It was when Bessent said that at 17 years old, he wanted to attend the U.S. Naval Academy but couldn’t because of his sexual preference.
“President Trump chose me, “Bessent said, for Treasury Secretary, “not because of my sexual preference,” but because of his qualifications. “I think it is a tribute to President Trump. He looks at people as people.”
If confirmed, Bessent would be the first openly gay treasury secretary.
Bessent talks about central bank digital currencies
Asked by Republican Sen. Marsha Blackburn about his view on central bank digital currencies, known as CBDCs, and whether he’d continue the Biden administration’s project of looking into the viability of the U.S. implementing a CBDC, Bessent said: "I see no reason for the U.S. to have a central bank digital currency. In my mind a central bank digital currency is for countries that have no other alternatives; many of these countries are doing it out of necessity.”
Sen. Sheldon Whitehouse brings up analysis of Bessent’s personal taxes and possible conflicts of interest
“We are up to date on all of our taxes,” Bessent said, adding he would shutter his firm if confirmed, to avoid potential conflicts of interest.
Bessent voiced support for Trump’s promise of no taxes on tips and Social Security
And he said he supports “making auto loans tax deductible once again.”
Democratic Sen. Elizabeth Warren asked whether Bessent thinks the statutory debt limit should be repealed. Both she and President-elect Trump have called for eliminating the debt limit.
Bessent said in response that if Trump wants to eliminate the debt limit, “I will work with him.”
“The U.S. is not going to default on its debt if I’m confirmed,” he said.
In his closing remarks, Senate Finance Committee Chair Mike Crapo said he’ll encourage other lawmakers to advance Bessent’s nomination.
-The Associated Press contributed to this report