Tag Archives: CARES Act

‘Speaking of Looting…’: Trump Admin. Refuses to Disclose Corporate Recipients of $500 Billion in Coronavirus Bailout Funds

“This is outrageous AND exactly what was obviously going to happen AND exactly why many of us opposed CARES as written.”

By Jessica Corbett, staff writer for Common Dreams. Published 6-11-2020

Steve Mnuchin. Screenshot: CNN

Progressive critics and advocacy groups are responding with alarm and anger to the Trump administration’s refusal to disclose the names of more than 4.5 million companies that have collectively received over $500 billion in corporate bailout money through a federal program created to provide businesses with relief from the coronavirus pandemic.

The over $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by President Donald Trump in March established the Paycheck Protection Program (PPP) with $349 billion in funding for forgivable loans. After the initial capital ran out in just 13 days, lawmakers approved $310 billion more—though over $130 billion of that amount was still left as of Tuesday. Continue reading

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‘Should Be Bigger News’: Analysis Finds Nearly One Third of Owed Unemployment Benefits Have Not Been Paid

Bloomberg found a $67 billion gap between the sum of benefits paid out by the Treasury Department and the amount that is owed to jobless Americans.

By Jake Johnson, staff writer for Common Dreams. Published 6-3-2020

Volunteers at the North Texas Food Bank. Photo: North Texas Food Bank/Twitter

A Bloomberg analysis released Tuesday estimates that nearly a third of the unemployment benefits owed to jobless Americans have not yet been paid out, a finding critics described as a “scandal” deserving of more media attention as millions of people struggle to afford basic expenses due to the Covid-19 pandemic.

“The Treasury disbursed $146 billion in unemployment benefits in the three months through May,” Bloomberg reported. “But even that historic figure falls short of a total bill that should have reached about $214 billion for the period, according to Bloomberg calculations based on weekly unemployment filings and the average size of those claims.” Continue reading

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Senate Bill Would Guarantee Paychecks to Laid-Off Workers for Rest of 2020 ‘To Avoid Another Great Depression’

“We cannot continue to allow tens of millions of Americans to lose their jobs, income, and health insurance during this horrific pandemic,” said Sen. Bernie Sanders, one of the bill’s lead sponsors.

By Jake Johnson, staff writer for Common Dreams. Published 5-21-2020

Unemployed men queued outside a depression soup kitchen opened in Chicago by Al Capone. Photo: Public domain

Sens. Bernie Sanders, Mark Warner, Doug Jones, and Richard Blumenthal on Thursday unveiled legislation aimed at stemming coronavirus-induced mass layoffs in the United States by guaranteeing paychecks and healthcare benefits to laid-off and furloughed workers for the rest of 2020.

The Paycheck Security Act—introduced with support from senators across the ideological spectrum of the Democratic caucus, and with the notable backing of Minority Leader Chuck Schumer (D-N.Y.)—would massively expand the existing Employee Retention Tax Credit to cover wages, salaries, and benefits for laid-off or furloughed workers up to $90,000 per year. Continue reading

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‘A Travesty’: Trump Restricting Covid-19 Relief Funds From Hospitals Serving Nation’s Poorest

“Trump is using hospital bailout fund money to disproportionately help high revenue hospitals, and leave safety-net systems in the lurch.”

By Jake Johnson, staff writer for Common Dreams. Published 5-4-2020

Service members assigned to the Javits New York Medical Station perform an X-ray scan on a COVID-19 patient in the facility’s intensive care unit, April 18, 2020.. (U.S. Army Photo by Sgt. Deonte Rowell)

Public health experts, state officials, and frontline medical workers are sounding the alarm and demanding an urgent change of course as the Trump administration disproportionately allocates Covid-19 relief funds to higher-revenue hospitals while restricting the flow of aid to providers that primarily serve low-income people.

The Los Angeles Times reported late last week that the Trump administration’s “program to aid hospitals and doctors on the front lines of the coronavirus crisis is leaving behind the nation’s Medicaid safety net—the pediatricians, mental health providers, and hospitals that serve the poorest patients. Continue reading

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‘A New Low’: Betsy DeVos Sued for Garnishing Wages of Nearly 300,000 Student Loan Borrowers During Pandemic

“The Trump administration is taking money from borrowers who are living on the edge of poverty, in the middle of a pandemic, and in violation of the law.”

By Julia Conley, staff writer for Common Dreams. Published 5-1-2020

U.S. Secretary of Education Betsy DeVos spoke at the 2017 Conservative Political Action Conference (CPAC) in National Harbor, Maryland. (Photo: Gage Skidmore/Flickr/cc)

A home health aide who earns just under $13 per hour is the lead plaintiff in a class-action lawsuit filed Thursday against Education Secretary Betsy DeVos, whose department has continued garnishing the wages of hundreds of thousands of student loan borrowers in the midst of the coronavirus pandemic.

The CARES Act, which was signed into law in late March, prohibits the Education Department from seizing the wages and tax refunds of student loan borrowers who have defaulted on their loans. Continue reading

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‘Lining Up at the Trough’: Federal Reserve to Offer Corporations $500 Billion No-Strings-Attached Bailout Loophole

“Big corporations have shown time and again that they will put their shareholders and executives ahead of their workers if given the choice.”

By Julia Conley, staff writer for Common Dreams. Published 4-28-2020

Through the Primary Market Corporate Credit Facility, the Fed will provide $500 billion to companies by buying bonds, but the companies will not be required to retain employees or limit executive pay. (Photo: Public Domain)

A Federal Reserve program approved by Congress and aimed at providing emergency relief to large companies contains a “catch” which will permit the corporations to lay off employees and spend the money on executive pay, according to a Washington Post report.

Through the Primary Market Corporate Credit Facility, the Fed will provide $500 billion to companies by buying bonds. The corporations will be required to pay the Fed back with interest. Continue reading

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Millions of People Face Stimulus Check Delays for a Strange Reason: They Are Poor

The IRS has had trouble getting money to people quickly because millions of Americans pay for their tax preparation through a baroque system of middlemen.

By Paul KielJustin Elliott and Will Young. Published 4-24-2020 by ProPublica

Image: Jernej Furman/flickr/CC

Last week, a group of angry and desperate Citi Tax Financial customers gathered outside the company’s storefront in Augusta, Georgia. Millions of Americans had received a big deposit from the IRS in their bank accounts, but they had not. The IRS website told them their coronavirus stimulus checks were deposited in an account they didn’t recognize.

With an officer from the Richmond County Sheriff’s Office beside him and another officer shouting for people to be quiet, the tax preparation company’s owner told the crowd of about 60, only a few of whom wore masks, that he didn’t have their money. Continue reading

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Calling US Postal Service ‘A Joke,’ Trump Demands Four-Fold Price Hike for Customers Amid Covid-19 Pandemic

Such a move, say critics, “would be a disaster for millions of Americans who rely on USPS.”

By Jessica Corbett, staff writer for Common Dreams. Published 4-24-2020

Postal workers and critics of the Trump administration’s plans to privatize the United States Postal Service (USPS) carried signs at a Los Angeles protest on Oct. 8, 2018. (Photo: Chloe Osmer/Twitter)

President Donald Trump on Friday threatened to withhold all future Covid-19 relief funding from the U.S. Postal Service unless the federal agency dramatically raises its shipping prices—a demand that critics say is ludicrous given the economic calamity the American people and the post office are now facing.

After U.S. Secretary Steven Mnuchin fielded a question about relief funding for USPS from a reporter at the White House during a bill signing ceremony Friday, Trump declared that “the Postal Service is a joke, because they’re handing out packages for Amazon and other internet companies, and every time they bring a package they lose money on it.” Continue reading

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USDA’s $19 Billion in COVID-19 Relief for Farmers and Food Banks Sparks Questions About Who Will Benefit

The new plan, says the National Sustainable Agriculture Coalition, “lacks critical details to confirm whether it will actually reach all who need it.”

By Jessica Corbett, staff writer for Common Dreams. Published 4-18-2020

Photo via salud-america.org

While some industry trade associationshunger relief organizations, and federal lawmakers welcomed the Trump administration’s new pledge to provide $19 billion in relief from the coronavirus pandemic to farmers and food banks nationwide, policy groups, and reporters highlighted that the announcement lacked critical details about who will benefit.

U.S. Agriculture Secretary Sonny Perdue announced the plan at a Friday night press briefing with President Donald Trump. The president said that “the program will include direct payments to farmers as well as mass purchases of dairy, meat, and agricultural produce to get that food to the people in need.” Continue reading

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‘Beyond Predatory’: Trump Treasury Department Gives Banks Green Light to Seize $1,200 Stimulus Checks to Pay Off Debts

“The Treasury Department is pointing out opportunities for banks and debt collectors to steal Americans’ relief checks out from under them.”

By Jake Johnson, staff writer for Common Dreams. Published 4-14-2020

Steve Mnuchin. Screenshot: CNN

President Donald Trump’s Treasury Department has given U.S. banks a green light to seize a portion or all of the one-time $1,200 coronavirus relief payments meant to help Americans cope with financial hardship and instead use the money to pay off individuals’ outstanding debts—a move consumer advocates decried as cruel and unacceptable.

“The Treasury Department effectively blessed this activity on a webinar with banking officials last Friday,” The American Prospect‘s David Dayen reported Tuesday. Continue reading

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