The New York Times reports that on her final morning as DHS secretary, Kristi Noem approved the purchase of five aircraft from Daedalus Aviation Corporation at significant markups. Documents show DHS paid $108 million for a renovated Boeing 737 that Daedalus had bought months earlier for under $90 million, plus $106 million for two Gulfstreams Daedalus acquired for about $83 million. Two older Boeing 737s were purchased at roughly $45 million each, above typical market estimates. Noem has denied the paper's characterization and demanded a retraction; the Times says it stands by its reporting.
Report: Kristi Noem Approved Purchase Of Five Marked‑Up Jets From Donor On Her Last DHS Day
Former Secretary of Homeland Security Kristi Noem testifies during a House Judiciary Committee hearing in March 2026.Heather Diehl via Getty Images
Former Department of Homeland Security (DHS) Secretary Kristi Noem authorized the purchase of five aircraft from Daedalus Aviation Corporation at substantially higher prices during her final morning in office, The New York Times reported.
What Happened
According to documents obtained by The New York Times, DHS agreed to pay $108 million for a renovated Boeing 737 converted into a private jet with luxurious amenities — including a stand‑up bar, two bedrooms, marble showers and a table covered in manta ray skin. The Times reports Daedalus had purchased that same aircraft months earlier for under $90 million, suggesting a large markup.
In addition, DHS bought two smaller Gulfstream jets for a combined $106 million, while Daedalus had paid roughly $83 million to acquire them. The department also purchased two 17‑year‑old Boeing 737 passenger planes at about $45 million apiece, a price several aviation experts told the Times was millions of dollars above typical market value for aircraft of that age.
Connections And Reactions
The Times reported that Daedalus' chairman, William Walters, donated $10,000 to Noem's political action committee, American Resolve, in 2024. Daedalus later told reporters that Walters did not know the PAC was affiliated with Noem at the time of his contribution, though archived pages of the PAC’s website prominently featured Noem’s name and image.
Noem arrives at Bahrain International Airport on May 24, 2025.Pool via Getty Images
Noem was dismissed by President Donald Trump in early March amid multiple controversies, but she remained in the DHS role until Representative Markwayne Mullin assumed the office later that month. Two White House officials told the Times Mullin briefly considered canceling the purchases but worried about potential financial penalties; after consulting White House Chief of Staff Susie Wiles, he allowed the transactions to proceed.
In response to the story, Noem called the reporting "factually incorrect" and "libelous" on the social platform X and demanded a full retraction or explicit correction. She argued that labeling Walters a "donor" was misleading and that clarifications had been provided to journalists "numerous times."
The New York Times stood by its coverage, writing that its reporting supports the characterization of Walters as a political donor and noting that the purchases were approved while Noem led DHS.
Why It Matters
The transactions raise questions about government procurement processes, timing of contract approvals near leadership transitions, and the extent to which political ties may influence purchasing decisions. Independent experts cited in the reporting said several prices appeared materially above market value, intensifying scrutiny over the deals.
Note: All factual details above are drawn from The New York Times reporting as summarized in the original article. Noem has disputed the characterization of events and asked for corrections; the Times has maintained its reporting.
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