Politics

ICE Barbie’s Secret China Cash Switch Revealed

MONEY TROUBLES

The former secretary apparently had her own ideas about how congressional appropriations should be used.

Kristi Noem delivers remarks at a working lunch at the Shield of the Americas Summit at Trump National Doral Miami, in Doral, Florida, U.S., March 7, 2026.
Rebecca Blackwell/via REUTERS

Former Homeland Security Secretary Kristi Noem diverted about $150 million in federal funding approved to counter national security threats posed by China and instead used it for security at sporting events.

The “big beautiful” spending bill passed by congressional Republicans last year included $170 million for “maritime domain awareness” technology to fight China’s illegal fishing operations worldwide, Punchbowl News reported.

The illegal fishing takes place at a scale that “constitutes ecocide conducted via gross human rights abuses,” and “poses an acute threat to the U.S. and our allies,” a bipartisan group of senators wrote Thursday in a letter to Treasury Secretary Scott Bessent.

Donald Trump, Gianni Infantino
DHS diverted the funds to provide security for the FIFA World Cup matches. President Trump presented the winners' trophy alongside FIFA President Gianni Infantino. Reuters

But instead of using the $170 million in funding for its intended purpose, the Department of Homeland Security under Noem diverted $155 million to counter-drone technology for events like the World Cup and President Donald Trump’s sparsely attended America250 celebrations, Punchbowl reported.

The other $15 million was used for Coast Guard communications technology and a Merchant Marine credentialing system.

The funding was secured by Republican Sen. Ted Cruz of Texas, who chairs the Senate Commerce Committee.

Sen. Ted Cruz, pictured in January, reignited his feud with podcaster Tucker Carlson on Tuesday when he called the former Fox News host the "single most dangerous demagogue" in the U.S.
Republican Ted Cruz had secured the diverted funding. Luke Johnson/Getty Images

Cruz confirmed to Punchbowl that the money had not “gone where it needed to go,” but didn’t specify what it was used for.

That information was provided by a senior congressional official and an administration official who was briefed on how the money was allocated, according to Punchbowl.

Generally speaking, federal agencies cannot divert congressionally approved funds unless lawmakers explicitly grant them transfer authority, according to the Congressional Research Service.

It wasn’t immediately clear if the necessary approval had been given for the expenditures, which Noem would have personally signed off on.

The former secretary—who was dubbed “ICE Barbie” for her habit of cosplaying as an immigration agent and member of the Coast Guard—implemented a controversial rule where she had to personally approve every expense above $100,000.

The Daily Beast has reached out to DHS for comment.

Trump fired Noem, 54, in March following a series of scandals, including public outcry over her department’s violent immigration raids and concerns about financial mismanagement.

Secretary of Homeland Security Markwayne Mullin held a press conference on July 17, 2026 in Washington, DC to discuss election security ahead of the midterms where he threatened blue states ahead of the midterms.
Kristi Noem's successor, Markwayne Mullin, has already faced his own series of scandals. Anna Moneymaker/Getty Images

She was replaced by Markwayne Mullin, a former senator and congressman, who invited many of the former secretary’s critics to return to the department, pushed her allies out the door, and reversed some of her more controversial policies, including the $100,000 sign-off rule.

The department, however, sparked renewed outrage this month after immigration agents killed two people in less than a week during enforcement operations aimed at filling deportation quotas.

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