Scott Bessent, founder and chief executive officer of Key Square Group LP and US treasury secretary nominee for President-elect Donald Trump, during a Senate Finance Committee confirmation hearing in Washington, D.C., U.S., on Jan. 16, 2025.

WASHINGTON — The Senate confirmed billionaire investor Scott Bessent as President Trump’s treasury secretary on Monday. This appointment presents him with the challenge of balancing tax cuts with deficit reduction, while formulating a tariff policy that avoids hindering economic growth.

The vote was 68 to 29, with 16 Democrats supporting his confirmation as the nation’s 79th treasury secretary.

Bessent, a South Carolina resident, will be the first openly gay person to hold this position. This marks a historic milestone as President Trump seeks innovative approaches to implementing his policy agenda, balancing the interests of billionaire business leaders concerned about regulations and a populist base demanding government action.

Bessent, a former supporter of Democrats and a one-time employee of George Soros, has become a staunch Trump supporter.

He has warned of potential economic disaster if Congress fails to renew key provisions of Trump’s Tax Cuts and Jobs Act expiring December 31, 2025. Negotiating the extension of these tax cuts will be a primary responsibility, alongside his goals of achieving 3% annual growth, substantially reducing deficits, and boosting domestic oil production by 3 million barrels daily.

Following Bessent’s confirmation, Republican Senator Mike Crapo of Idaho, chairman of the Senate Finance Committee, described the vote as “one of the easiest votes we could ever take.”

However, he faced opposition from Democrats regarding unpaid taxes.

Democrats allege Bessent engaged in tax avoidance by not paying nearly $1 million in Medicare taxes related to his limited partnership in his hedge fund. Bessent disputes this tax liability and is involved in litigation. He pledged during his confirmation hearing to pay the taxes if the court rules against him.

Some Democrats, such as Senator Chris Coons (D-Del.), expressed support for Bessent.

“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,” Coons stated, adding his support for Bessent’s commitment to continued U.S. investment in international financial institutions like the World Bank and the International Monetary Fund.

Trump took time before nominating Bessent, also considering billionaire investors John Paulson and Howard Lutnick (whom Trump chose for commerce secretary).

The treasury secretary serves as the President’s fiscal policy advisor, manages the public debt, and is a member of the President’s National Economic Council.

His responsibilities include exploring the creation of an External Revenue Service to collect tariff revenue from other nations. Trump announced this agency—which requires congressional action—on Truth Social earlier this month.

Tariffs are central to Trump’s economic agenda. He has threatened a potential 25% levy on goods from allies like Canada and Mexico, and a 60% levy on goods from China.

Furthermore, Bessent faces a significant and record-high U.S. debt. Before leaving office this month, Treasury Secretary Janet Yellen warned congressional leaders that Treasury would implement “extraordinary measures,” accounting maneuvers to avoid breaching the debt ceiling. These measures were deployed on Thursday.

With Trump’s return to the White House and Republicans controlling Congress, his unconventional Cabinet choices are being confirmed despite initial skepticism and opposition from both parties.

In his testimony, Bessent committed to maintaining the IRS’ Direct File program—allowing taxpayers to file returns directly to the IRS for free—at least for the 2025 tax season (beginning January 27). Republican lawmakers deem the program wasteful due to existing (but unpopular) free filing programs.

He also stated during his confirmation hearing that the Federal Reserve should remain independent from presidential influence and that U.S. sanctions on Russian oil should be strengthened.