Lawmakers grilled Treasury Secretary Scott Bessent on the Trump administration’s tariff policies and high profile lawsuits in the administration.
Bessent, speaking before the Senate Banking, Housing and Urban Affairs committee, defended the Trump administration’s tariff policies and argued prices were more affordable now than at times under the Biden administration.
Sen. Tim Scott, R-S.C., praised Bessent’s work on affordability and said the shift from climate change policy was essential to reducing costs.
“When families have savings, access to affordable credit and confidence in their financial future, they are better equipped to weather storms, weather economic shocks, and the system becomes more resilient,” Scott said.
Other lawmakers on the panel fiercely criticized Bessent over tariff policies and their effect on affordability. Sen Elizabeth Warren, D-Mass., criticized the tariff policies and questioned whether grocery costs had gone down during the Trump administration.
Bessent pointed to inflation numbers over the past year of the Trump administration. In December 2025, inflation slowed to 2.7%, marking a significant decrease from 3.0% in September. Warren countered with data from the Bureau of Labor Statistics which found grocery prices increased 2.4% by the end of 2025 compared to 2024.
Bessent called for the Federal Reserve to obtain a 2% inflation rate. He said the policy would help Americans with costs across the board. Sen. Catherine Cortez-Masto, D-Nev., blamed the Trump administration’s tariff policies for decreased tourism, which she said her state relies on heavily.
Cortez-Masto said a large portion of Nevada’s economy relies on tourism income. A recent report valued Nevada’s outdoor recreation industry at $24 billion.
“This administration’s blanket tariffs and insulting rhetoric towards our closest allies are damaging America’s tourism economy,” Cortez-Masto said. She pointed to declining numbers of Canadian tourists visiting the United States over the past year.
Bessent argued the Canadian economy itself was a reason for why fewer tourists are visiting the United States. He also refused to lower trade barriers for the sake of increasing tourism.
“Should we pull down all of our trade barriers with China so that 1.4 billion people can fill up the hotel rooms in Las Vegas?” Bessent questioned.
Lawmakers also raised concerns over whether taxpayers would be liable for President Donald Trump’s $10 billion lawsuit against the IRS. Trump and his two sons filed the action over allegations that the IRS failed to prevent their financial data from being leaked in 2019 and 2020, the Center Square previously reported.
During those years, a former employee of Booz Allen Hamilton leaked thousands of wealthy clients’ confidential tax filings, including those of the president, to various media outlets. Booz Allen contracted with the IRS during that time, and the lawsuit accused the IRS of neglecting to enforce proper security measures.
Bessent admitted that if Trump were to prevail in the lawsuit, the funds would come from taxpayers through the U.S. Treasury Department. Sen. Ruben Gallego, D-Ariz., called the move a “shakedown of the American taxpayer.”
Gallego also brought up a $230 million inquiry Trump is pursuing over investigations into his previous presidential candidacy. If Trump were to prevail in that inquiry, Bessent would be responsible for providing the damages.
“This president is basically plundering U.S. taxpayer dollars,” Gallego said. “If this had been happening in any other country, it would absolutely look like a total shakedown of the American taxpayer.”
