By Joe Light

Shares of Booz Allen Hamilton fell after Treasury Secretary Scott Bessent told lawmakers that the major government contractor had lost his agency's confidence.

Bessent was testifying Wednesday on the Treasury Department's budget request at a subcommittee of the Senate Committee on Appropriations. During the question-and-answer portion of the hearing, Bessent was asked about his department's decision to cancel $21 million of contracts with Booz Allen in response to one of its employees leaking tax returns to news reporters.

"This was premeditated, and his employer failed to screen them, and we no longer have confidence in that firm's ability to screen, vet, and deploy contractors within the IRS, or indeed the entire Treasury Department," said Bessent, referencing Booz Allen.

In a statement, Booz Allen said it has "consistently condemned in the strongest possible terms the actions" of its former employee. The company said it supported the government in its investigation and that the company "has zero tolerance for violations of the law."

The company said it doesn't store any taxpayer data on its systems.

Shares of Booz Allen as of late morning Wednesday were down 3.2% to $78.41.

Investors are likely concerned not just about the company's former Treasury contracts, which are relatively tiny, but about the company's fractured relationship with the Trump administration as a whole. Booz Allen gets most of its revenue from contracts with government agencies including the departments of Defense, Veterans Affairs, and Homeland Security, among others.

A Booz Allen employee in 2023 pleaded guilty to leaking tax return information and was sentenced to five years in prison. The employee had leaked the tax returns of President Donald Trump and other wealthy taxpayers to news organizations. Trump this January said he was suing the IRS and Treasury for $10 billion over the leak, and at about the same time, the Treasury Department said it would cancel its contracts with Booz Allen, helping to send shares down 8% that day.

Write to Joe Light at joe.light@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 22, 2026 12:19 ET (16:19 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.