Committee presses Treasury over tariffs, delayed refunds and nonprofit foreign‑influence probes

A series of exchanges at the hearing centered on trade policy, tariff refunds, and Treasury’s review of tax‑exempt organizations for foreign influence.

Several members blamed tariff measures for higher consumer prices and cited local economic indicators—tourism declines, airport passenger drops and higher consumer costs—for harms they said were connected to tariff policy and slow refunds. Representatives asked whether Treasury had participated in decisions about appealing court orders that would accelerate tariff refunds; Secretary Bessant described Treasury as the payment agent, noted Customs and Border Protection and DOJ roles on refunds and said Treasury would follow legal process. Members sought a faster mechanism to return funds to the ultimate payers; Republican members argued for an automatic refund process.

Separately the committee raised Treasury/IRS attention to tax‑exempt organizations. Secretary Bessant described Treasury and the IRS working to strengthen Form 990 reporting and urged trustees to "know your grantee"; he said non profit guidance aims to ensure tax‑exempt status reflects community benefit and that wrongdoing (support for violence or civil‑rights violations) could threaten exemption. He cited the large share of the economy in tax‑exempt entities and said Treasury is pursuing tighter reporting and enforcement measures.

The hearing also included a GAO discussion of contractor access to Treasury payment systems and unencrypted data transfers; members demanded specifics on the six GAO recommendations and disciplinary actions. Bessant said protocols were tightened and that Treasury would respond formally to GAO recommendations.

Committee members from both parties asked for follow‑up documents and state‑by‑state breakdowns of delayed refund notices and for timelines on Treasury actions to protect taxpayer data and enforce nonprofit rules. Treasury agreed to provide further written responses and staff briefings.