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Who's getting these hundreds of billions in the government aid? The public may be in the dark.
Whos getting these hundreds of billions in the government aid? For now, the public may be in the dark.
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Business
Whos getting these hundreds of billions in the government aid? For now, the public may be in the dark.
The federal government is doling out more than $2 trillion in coronavirus relief.
By Peter Whoriskey and Heather Long
April 13, 2020 at 7:30 a.m. EDT
The names of businesses that collectively will receive hundreds of billions of dollars in coronavirus relief from the federal government may not be disclosed publicly, an omission that critics say could make the massive spending program vulnerable to fraud and favoritism.
The $2.2 trillion Cares Act approved by President Trump last month requires that the names of recipients of some forms of federal aid be published, but those requirements do not extend to significant portions of the relief.
Chief among the omissions is the $349 billion expected to be doled out to small companies in chunks as large as $10 million. The rescue legislation does not compel the Small Business Administration to disclose the identity of the recipients. So far, the agency has said it received about 487,000 applications totaling $125 billion in requests.
A potentially even larger gap involves the trillions going out to businesses under the auspices of the Federal Reserve.
The Cares Act and other legislation generally requires the Fed to disclose the loan recipients and the amounts they receive, but there is a significant exemption: the Fed chairman, Jerome H. Powell, may request that the information be kept confidential, meaning only congressional leaders would be given access.
Proponents of withholding the information argue that identifying coronavirus aid recipients could make firms hesitant to apply out of concerns for privacy, especially if they are small. Other needy firms may fear that an aid application, once made public, could be construed as a sign of financial frailty. Restarting the economy requires getting money to businesses quickly, these proponents say, so programs should avoid requirements that discourage applications.
{snip}
Staff Writers Aaron Gregg and Renae Merle contributed to this report.
Peter Whoriskey
Peter Whoriskey is a staff writer for The Washington Post whose investigative work focuses on American business and the economy. Previously, he worked at the Miami Herald, where he contributed to the paper's coverage of Hurricane Andrew, which was awarded a Pulitzer Prize for public service. Follow https://twitter.com/PeterWhoriskey
Heather Long
Heather Long is an economics correspondent. Before joining The Washington Post, she was a senior economics reporter at CNN and a columnist and deputy editor at the Patriot-News in Harrisburg, Pa. She also worked at an investment firm in London. Follow https://twitter.com/byHeatherLong
Whos getting these hundreds of billions in the government aid? For now, the public may be in the dark.
The federal government is doling out more than $2 trillion in coronavirus relief.
By Peter Whoriskey and Heather Long
April 13, 2020 at 7:30 a.m. EDT
The names of businesses that collectively will receive hundreds of billions of dollars in coronavirus relief from the federal government may not be disclosed publicly, an omission that critics say could make the massive spending program vulnerable to fraud and favoritism.
The $2.2 trillion Cares Act approved by President Trump last month requires that the names of recipients of some forms of federal aid be published, but those requirements do not extend to significant portions of the relief.
Chief among the omissions is the $349 billion expected to be doled out to small companies in chunks as large as $10 million. The rescue legislation does not compel the Small Business Administration to disclose the identity of the recipients. So far, the agency has said it received about 487,000 applications totaling $125 billion in requests.
A potentially even larger gap involves the trillions going out to businesses under the auspices of the Federal Reserve.
The Cares Act and other legislation generally requires the Fed to disclose the loan recipients and the amounts they receive, but there is a significant exemption: the Fed chairman, Jerome H. Powell, may request that the information be kept confidential, meaning only congressional leaders would be given access.
Proponents of withholding the information argue that identifying coronavirus aid recipients could make firms hesitant to apply out of concerns for privacy, especially if they are small. Other needy firms may fear that an aid application, once made public, could be construed as a sign of financial frailty. Restarting the economy requires getting money to businesses quickly, these proponents say, so programs should avoid requirements that discourage applications.
{snip}
Staff Writers Aaron Gregg and Renae Merle contributed to this report.
Peter Whoriskey
Peter Whoriskey is a staff writer for The Washington Post whose investigative work focuses on American business and the economy. Previously, he worked at the Miami Herald, where he contributed to the paper's coverage of Hurricane Andrew, which was awarded a Pulitzer Prize for public service. Follow https://twitter.com/PeterWhoriskey
Heather Long
Heather Long is an economics correspondent. Before joining The Washington Post, she was a senior economics reporter at CNN and a columnist and deputy editor at the Patriot-News in Harrisburg, Pa. She also worked at an investment firm in London. Follow https://twitter.com/byHeatherLong
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Who's getting these hundreds of billions in the government aid? The public may be in the dark. (Original Post)
mahatmakanejeeves
Apr 2020
OP
If I'm reading this right, Kushner's secretive team gives generous contracts to industry to ...
mahatmakanejeeves
Apr 2020
#3
padah513
(2,503 posts)1. I don't think we'll ever find out so long as Trump is in office
After the election, we need to open the books and track down every penny. I say give the job to Elizabeth Warren and/or Katie Porter.
Cartaphelius
(868 posts)2. "may be in the dark"?
From what planet do you come from?
History, in and of itself, of the recent termination of Inspector Generals should clarify that question.
mahatmakanejeeves
(57,489 posts)3. If I'm reading this right, Kushner's secretive team gives generous contracts to industry to ...
Kevin M. Kruse Retweeted
If Im reading this right, Kushners secretive team gives generous contracts to industry to produce goods that the administration then distributes on the basis of an opaque formula that happens to most benefit politicians supportive of the president.
Link to tweet
Scarsdale
(9,426 posts)4. Well, we may never find out
who (besides tRump and family) will get all this money, but we do know one thing WE WILL BE PAYING IT BACK. Another reason for tRump to hurry getting people back to work.
2naSalit
(86,647 posts)5. Which is why the command of "back to work" should be ignored.
Starve the beast.