Treasury Secretary Cancels Millions in Booz Allen Contracts Amid Tax Data Breach

Treasury Secretary Scott Bessent made headlines this week by canceling all contracts with consulting firm Booz Allen Hamilton. UPI reports that on Monday, Bessent announced the decision due to a data breach involving President Donald Trumps tax returns. The Treasury Department had 31 contracts with the firm, worth four point eight million dollars annually and twenty one million dollars total. Bessent stated that President Trump tasked the cabinet with eliminating waste, fraud, and abuse, and this move boosts public trust in government. A Booz Allen employee, Charles Edward Littlejohn, stole and leaked tax data of about four hundred six thousand taxpayers from 2018 to 2020, including Trump, Jeff Bezos, and Elon Musk. Littlejohn pleaded guilty in 2023 and received five years in prison for sharing the information with The New York Times and ProPublica. The Treasury press release confirms Booz Allen failed to protect sensitive taxpayer data accessed through Internal Revenue Service contracts. Booz Allen stock dropped eight percent after the news, according to CNBC. A spokesperson for the firm condemned Littlejohns actions and noted their cooperation in his prosecution.

Bessent also drew attention for controversial remarks. At Davos last week, he dismissed concerns from Denmark about pulling investments from United States Treasury bonds, calling Denmarks investment irrelevant. He urged European countries to avoid escalating against United States tariff threats, comparing their reaction to hysteria. The New Republic criticizes Bessents belligerent tone, linking it to rising gold prices above five thousand one hundred dollars per ounce and a weakening dollar. Critics like Desmond Lachman from the American Enterprise Institute accuse Bessent of supporting irresponsible budgets and policies that risk economic ruin. Bessent sparred with California Governor Gavin Newsom over a proposed ban on institutional investing in single family homes, calling Newsom out of touch. Separately, a YouTube video from January 26 shows Bessent suggesting Alberta should join the United States.

These actions highlight Bessents aggressive approach to fiscal accountability amid market tensions.

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