Ranking Member Coons hammers Secretary Bessent for funding our enemies during war time during Appropriations hearing

You don't have to read "The Art of War" to know that helping your adversaries gain money while you're at war is a terrible idea"

WASHINGTON - U.S. Senator Chris Coons (D-Del.), Ranking Member of the Senate Appropriations Subcommittee on Defense, assailed Treasury Secretary Scott Bessent for failures on multiple fronts, chiefly funding adversaries Russia and Iran even in the middle of President Trump's war of choice with Iran. The exchange occurred at a Senate appropriations subcommittee hearing on President Trump's budget request.

Senator Coons opened his questioning by going after Secretary Bessent for filling Iran's coffers through permitting unsanctioned oil sales while the United States is at war with the country, noting that it exceeded the funds released to Tehran as part of the 2015 JCPOA.

"President Trump has described the Obama Iran deal as a disaster and a scandal because of the money Iran got," said Senator Coons. "You don't have to read "The Art of War" to know that helping your adversaries gain money while you're at war is a terrible idea, and it's shocking to me that the countries currently profiting from the release of sanctions are our enemies."

Senator Coons went on to also highlight Russia's huge revenue gains since the war began. Russia is profiting not only from high global oil prices caused by President Trump's war of choice with Iran, but also repeated sanctions waivers on the sale of Russian oil that is netting Moscow an additional $150 million in revenue each day. Russia is using that money to prosecute its illegal war against Ukraine in Europe as well as to aid the Iranian military in their fight against the United States.

"I believe that Russia and Iran have benefited from the release of sanctions, and when you said we're not going to extend sanctions relief, and reversed that decision, I was deeply disheartened, because we shouldn't be funding Putin's war machine," said Senator Coons.

Secretary Bessent claimed the sanctions relief would help with skyrocketing gas prices; however, as Senator Coons noted, gas prices are nearly $4 per gallon in Delaware and are up 88 cents per gallon in the past year.

Senator Coons also pressed Secretary Bessent on cuts to Community Development Finance Institutions (CDFIs) - which help finance affordable housing - despite bipartisan support for CDFIs and a nationwide housing crisis. He closed by highlighting the Treasury Department's closure of Direct File, a free and efficient tax filing program that saved the average user $160.

A video and transcript of Senator Coons' testimony is available below.

WATCH HERE.

SENATOR COONS : Chair Haggerty, Ranking Member Reed, thank you. Secretary Bessent, I'll have three questions for you this morning about sanctions, CDFIs, and Direct File.

We're about seven weeks into the war with Iran, and I wondered, Mr. Secretary, given that your department enforces sanctions, if you have a sense just how much Iran has gained through sanctions relief since the war began. I'll tell you - estimates are $14 billion. President Trump has described the Obama Iran deal as a disaster and a scandal because of the money Iran got, which was about $1.7 billion. I don't know how you describe $14 billion, but you don't have to read "The Art of War" to know that helping your adversaries gain money while you're at war is a terrible idea, and it's shocking to me that the countries currently profiting from the release of sanctions are our enemies.

No country has profited more from this war than Russia. Oil and gas prices are up nearly 50% since February, and it'd be bad enough if Russia were just profiting from higher global oil prices, but your Treasury Department lifted sanctions on Russian oil, giving them an extra $150 million a day in revenue. And those funds are going not just to kill Ukrainians, but Russia is using its profits to support Iran with drones and intelligence to kill our troops.

So, look - to summarize, I find it hard to believe that we are continuing to relieve sanctions pressure on Russia and Iran. I was encouraged when last week you said that the department would not extend the sanctions relief for Russia - yet the next day, that was reversed. Can you give me any brief idea why it's a good idea to relieve sanctions on Iranian and Russian oil?

BESSENT: With pleasure, senator. The $14 billion is a myth and unfortunately a DNC talking point that I've been subjected to many times. If anyone would like to show me where that $14 billion comes from-

SENATOR COONS: I look forward to an exchange of details on that, Mr. Secretary.

BESSENT: -we can exchange in a very public forum.

SENATOR COONS: I'm not the DNC. I'm the senator from Delaware.

BESSENT: Well, on every talk show, every senator seems to-

SENATOR COONS: Do you disagree that Iran has received significant additional revenue from their sales of oil because of sanctions relief?

BESSENT: Couldn't disagree more.

SENATOR COONS: Okay, do you disagree that Russia has received significant additional revenue from the sanctions relief?

BESSENT: Couldn't disagree more.

SENATOR COONS: Okay, why did you relieve the sanctions against Russian and Iranian oil?

BESSENT: Think of it this way, sir, the Strait of Hormuz-

SENATOR COONS: Familiar with it.

BESSENT: There is oil to the-

SENATOR COONS: Yep, left and to the right.

BESSENT: Treasury was able to - just as you are concerned about gasoline price, for the American consumer and for our Asian allies, as are we. Treasury was able to create - they have more than 250 million barrels on the water. And the way to think about this is, as I came in today, the oil prices are at $100. If we had not done that sanctions relief, they might have been at $150 because the world became very well supplied. So, the - if Russia was getting, selling their oil at a 20% discount, I can tell you that 100% of 100 is less than 80% of 150, and the American consumer has been better off.

SENATOR COONS: Well - look, the folks in Delaware are buying $4 a gallon gas today. I don't see that we've seen a significant reduction in the price at the pump or the price on the world markets. But I have two more questions I want to get to, and I look forward to disputing with you the details. I believe that Russia and Iran have benefited from the release of sanctions, and when you said we're not going to extend sanctions relief, and then we're reversed, I was deeply disheartened, because we shouldn't be funding Putin's war machine.

BESSENT: I'd like to - that was as a result, last week was Bank Week - World Bank and IMF week. And on Wednesday, it was my belief we would not do it. I was approached by more than 10 of the most vulnerable and poorest countries in terms of energy, and they asked us to extend that sanction, and it's only for 30 days.

SENATOR COONS: 30 days, 4.5 billion to Putin's war machine.

Two more quick questions. The CDFI funds - I was encouraged by your comments in support of CDFI last year. I am one of 32 senators - bipartisan senators - who are co-sponsors of the Daines-Warner AFFORD Act, which strengthens the CDFI Fund. Delaware, like most states, has a housing affordability crisis. Every dollar provided by Treasury to CDFIs crowds in $8 in private investment.

I think they are a proven, bipartisan, effective way to help build affordable housing in rural and urban communities. I'm perplexed by your budget proposal, which would cut over $200 million - a more than a 60% cut to this successful program. Could you tell me briefly why?

BESSENT: First of all, that was an OMB apportionment, the funding-

SENATOR COONS: So, you don't support it?

BESSENT: The, the, the funding is now $280 million, and I do support the new $100 million program on the - in rural areas, and I can tell you that part of the CDFI program had lost its way in terms of a partisan agenda. And we can see, for instance -

SENATOR COONS: Mr. Secretary, I have one last question for you, and I don't think funding affordable housing is a partisan agenda.

Direct File. You spoke compellingly about an interest in making the IRS easier to access, more efficient, yet you shut down the Direct File program. I was very disappointed by that - more than 300,000 taxpayers used it last year. It is a quick, free, U.S. government-provided way to file taxes. The average American who has simple tax filing spends $270 and 13 hours filing their taxes through paid services. Direct File saved the average participant 160 bucks, 90% rated it favorably, and the alternatives are run by for-profit tax prep companies designed to steer filers towards paid alternatives. Why'd you shut down Direct File when it was free and easy to use?

BESSENT: Well, it wasn't free, and the-

SENATOR COONS: Direct File was free to taxpayers.

BESSENT: Not to the American people, it was $138 per person. So, $72 million for, as you said, about 300,000 taxpayers. There is an alternative, which is public-private partnership Free File, which is free to the American people, the - and filers, over 3 million people use that, and for Direct File, more than 60% of the people who started their application didn't finish it.

SENATOR COONS: Thank you for those answers, Mr. Secretary, thank you.