WASHINGTON, D.C. — The U.S. Department of the Treasury moved on multiple fronts last week, canceling all contracts with Booz Allen Hamilton, promoting a new savings initiative dubbed “Trump Accounts,” releasing a major currency practices report, and announcing fresh sanctions targeting Iranian officials and a digital-asset network.
On Monday, January 26, 2026, Treasury Secretary Scott Bessent said the department canceled “all contracts” with Booz Allen Hamilton, citing what he described as a failure to protect sensitive data. Treasury said it has 31 separate contracts with the firm totaling $4.8 million in annual spending and $21 million in total obligations.
Bessent tied the decision to a high-profile Internal Revenue Service breach, noting that between 2018 and 2020, Charles Edward Littlejohn — a Booz Allen employee — stole and leaked confidential tax returns and return information. Treasury said the Internal Revenue Service determined the breach affected about 406,000 taxpayers, and that Littlejohn has pleaded guilty to felony charges for disclosing confidential tax information without authorization.
Two days later, on Wednesday, January 28, Bessent delivered remarks describing “Trump Accounts” as a signature policy for the nation’s 250th anniversary and a vehicle to expand what he called a shareholder society. In the speech, he said every American child born between January 1, 2025, and December 31, 2028, would be eligible for a $1,000 contribution from Treasury invested in an index fund, with families generally able to claim the benefit by checking a box on “Form 4547.”
Bessent said that only three days into the 2026 tax filing season, approximately 500,000 Americans had elected to open a Trump Account for their children. He also said that starting July 4 — which he described as the nation’s 250th anniversary — family, friends, and employers would be able to contribute up to $5,000 per account per year.
Treasury’s messaging widened on Thursday, January 29, when it said it hosted a “Trump Accounts Summit” keynoted by Donald J. Trump and Bessent to drive broader participation. Treasury said the event highlighted corporate commitments and philanthropic contributions tied to matching seed funding, expanding employee participation, and creating new channels for account growth, and it directed the public to TrumpAccounts.gov for more information.
Also on January 29, Treasury delivered its semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, reviewing the policies of major U.S. trading partners over the four quarters through June 2025. Treasury said it found no major trading partner met the standard for designation as a currency manipulator during that period, while placing 10 economies on its monitoring list: China, Japan, Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. Treasury said Thailand was newly added relative to its June 2025 report.
Then on Friday, January 30, Treasury’s Office of Foreign Assets Control announced additional actions targeting Iranian officials and an Iranian businessman it described as a sanctions evader. Treasury said it sanctioned Iran’s Interior Minister, Eskandar Momeni Kalagari, and designated Babak Morteza Zanjani, along with two U.K.-registered digital asset exchanges — Zedcex Exchange, Ltd. and Zedxion Exchange, Ltd. — saying the exchanges processed large volumes of funds tied to Islamic Revolutionary Guard Corps-linked counterparties. Treasury described the action as its first designation of a digital asset exchange for operating in the financial sector of Iran’s economy.
Treasury said the measures were taken under multiple executive orders, including authorities tied to serious human rights abuses, counterterrorism, and Iran’s financial, petroleum, and petrochemical sectors, and it warned that violations of U.S. sanctions can trigger civil or criminal penalties.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.