WASHINGTON–There is a growing divide in Congress and with the Trump Administration related to oversight of the trillions of dollars in coronavirus pandemic-related aid and loans that have been made to date.
The Trump Administration has largely blocked such oversight, citing a variety of reasons, even as it has been revealed at least four members of Congress have benefitted from the Paycheck Protection Program (PPP).
Currently, companies that have received funds from the PPP are anonymous, even as government watchdogs and members of Congress are “raising new alarms” over the lack of oversight with the programs, the Washington Post reported.
Two House panels have given the administration until Monday to disclose the names of companies that have received funds.
Oversight Blocked
But the Trump administration’s intensifying efforts to block oversight of its coronavirus-related rescue programs are raising new alarms with government watchdogs and lawmakers from both parties amid concerns about the anonymity of companies receiving unprecedented levels of taxpayer funds.
“In a letter to four congressional committee chairs Thursday, two officials in charge of a new government watchdog entity, the Pandemic Response Accountability Committee (PRAC), revealed that the Trump administration had issued legal rulings curtailing independent oversight of CARES Act funding,” the Post reported. “The letter surfaced amid growing bipartisan frustration over the administration’s decision not to disclose how it is spending hundreds of billions in aid for businesses. On Monday, Treasury Secretary Steven Mnuchin appeared to bow to that pressure, saying he would work with Congress on new oversight measures. But some Democrats have said the White House is not taking disclosure requests seriously enough.”
‘Doing Exactly the Opposite’
Among the critics is Rep. Carolyn B. Maloney (D-NY), who said, “(The Administration) seems to be saying one thing while doing exactly the opposite. If the Trump administration is committed to full cooperation and transparency with taxpayer dollars, it is unclear why it is manufacturing legal loopholes to avoid responding to legitimate oversight requests.”
The Post reported that according to the previously undisclosed letter, Treasury Department attorneys concluded that the administration is not required to provide the watchdogs with information about the beneficiaries of programs created by the Cares Act’s “Division A.”
“That section includes some of the most controversial and expensive programs in the coronavirus response efforts, including the administration’s massive bailout for small businesses and nearly $500 billion in loans for corporations,” the report stated. “Mnuchin surprised many lawmakers last week when he announced he would not allow the names of Paycheck Protection Program recipients to become public after the Trump administration had said for months that the data would eventually be disclosed.”
Treasury Response
The Treasury Department responded by saying the CARES Act spending would be subject to “comprehensive oversight,” including multiple inspectors general, a new congressional panel and the independent Government Accountability Office. The Treasury Department is also briefing congressional lawmakers and updating the government-wide reporting site USASpending.gov, the Post said.
Members of Congress Benefit
Meanwhile, it has been learned at least four members of Congress have reaped benefits from the PPP, and “no one knows how many more there could be,” reported Politico. “It’s a bipartisan group of lawmakers who have acknowledged close ties to companies that have received loans from the program — businesses that are either run by their families or employ their spouse as a senior executive.”
According to Politico, members of Congress who have ties to funds from the PPP include Rep. Roger Williams (R-TX), a wealthy businessman who owns auto dealerships, body shops and car washes, and Rep. Vicky Hartzler (D-MO), whose family owns multiple farms and equipment suppliers across the Midwest. The Democrats count Rep. Susie Lee of Nevada, whose husband is CEO of a regional casino developer, and Rep. Debbie Mucarsel Powell of Florida, whose husband is a senior executive at a restaurant chain that has since returned the loan, Politico said.
‘Almost Certainly More’
“And there are almost certainly more, according to aides and lawmakers,” Politico reported. “But only the Small Business Administration and Treasury Department have that information, and the Trump administration is refusing to provide any details. That leaves it entirely up to business owners — including elected officials — to decide whether to come forward about a loan, which can be as large as $10 million.”
Politico noted congressional Democrats in the House attempted to require disclosure of at least some companies, but their efforts were blocked by Republicans, including Williams and Hartzler, who voted against the bill. Lee and Powell joined all Democrats in supporting it. All four lawmakers have previously voted in favor of the small-business program, Politico said.
“This is the largest distributor of taxpayer money in human history, and we need to ensure taxpayers know where it’s going,” the author of that bill, Rep. Dean Phillips, said told Politico. The Minnesota Democrat added his bill “was not written to expose members of Congress, because frankly I expected members of Congress to be forthright and transparent to begin with.”
Each of the lawmakers who received PPP loans, either directly for their business or indirectly through a spouse, say the loans were acquired through proper channels and part of a desire to help keep Americans employed, Politico reported.