Scott Bessent Announces Investigation into Tax-Exempt Organizations Abusing Status

Treasury Secretary Scott Bessent announced Thursday the U.S. Treasury is launching an investigation into tax-exempt organizations abusing status for illicit funding.

Why is he launching the investigation?

The investigation was launched at the direction of President Trump, with the purpose of defending the "integrity" of the U.S. and global financial systems.

What are people saying?

• Bessent: "We will dismantle the networks that sustain political terrorism, however respectable their fronts may be."

The investigation targets tax-exempt organizations, dismantling the networks that "sustain political terrorism." Tax-exempt organizations, Bessent explained, have been exploiting the nonprofit and charitable structures to move illicit funds to support political terrorism.

"We will pursue those who enable political violence, however distant their jurisdictions," said Bessent in the announcement. "And we will deepen our collaboration with every nation represented in this room, for as long as this work requires."

The Treasury intends to deny foreign terrorist groups access to the network of the global financial system, preventing the threat from further emerging in the U.S.

President Trump directed Bessent to launch the investigation, as part of a greater attempt to eliminate fraud throughout the country.

In March, President Trump established a task force to eliminate fraud, which consists of Vice President JD Vance, the Chairman of the Federal Trade Commission, the Assistant to the President for Homeland Security, an Executive Director and other relevant government agency members.

The task force will advise the President and coordinate government efforts to recognize and combat fraud, waste and abuse in Federal benefit programs.