Tag Archives: workers’ issues

Trump Friends and Family Cleared for Millions in Small Business Bailout

Beneficiaries of the PPP included a lettuce farming venture backed by Trump’s son, Kushner companies, and a dentist who golfs with the president. The figures were released after a lawsuit by several news organizations, including ProPublica.

By Jack GillumIsaac ArnsdorfJake Pearson and Mike Spies  Published 7-6-2020 by ProPublica

Businesses tied to President Donald Trump’s family and associates stand to receive as much as $21 million in government loans designed to shore up payroll expenses for companies struggling amid the coronavirus pandemic, according to federal data released Monday.

A hydroponic lettuce farm backed by Trump’s eldest son, Donald Jr., applied for at least $150,000 in Small Business Administration funding. Albert Hazzouri, a dentist frequently spotted at Mar-a-Lago, asked for a similar amount. A hospital run by Maria Ryan, a close associate of Trump lawyer and former mayor Rudy Giuliani, requested more than $5 million. Several companies connected to the president’s son-in-law and White House adviser, Jared Kushner, could get upward of $6 million.

There’s no ban on businesses connected to Trump’s orbit receiving money. Democrats added a provision to the CARES Act excluding government officials and their family members from receiving some bailout funds, but not those from the PPP.

The firms sought funding under the Paycheck Protection Program, one of the Trump administration’s sweeping pandemic relief efforts. Created in late March by the CARES Act, it allowed small businesses — generally, those with fewer than 500 employees — to apply for loans of up to $10 million. The loans can be forgiven if used to cover payroll, rent, mortgage interest or utilities.

The program paid out $521 billion to almost 4.9 million companies in an effort to provide relief for small businesses and their workers amid the sudden economic shock brought on by the pandemic. As applications slowed after the initial rush, $132 billion remained unspent, and Congress voted to extend the program.

After resisting releasing the names, the government bowed to pressure from critics and watchdog groups. On Monday, the administration disclosed only those entities that were approved by banks for loans over $150,000. A consortium of news organizations, including ProPublica, has sued the administration under the Freedom of Information Act to release the full list of recipients and loan details.

The program has been criticized for including some loan recipients, particularly large, publicly traded companies, and for favoring wealthier businesses that had existing relationships with banks. In some cases customers could essentially skip the line. Overall, however, many economists praise the PPP for having gotten billions to companies relatively quickly.

The New York Observer, the news website that Kushner ran before entering the White House and is still owned by his brother-in-law’s investment firm, was approved for between $350,000 and $1 million, data shows. A company called Princeton Forrestal LLC that is at least 40 percent owned by Kushner family members, according to a 2018 securities filing, was approved for $1 million to $2 million. Esplanade Livingston LLC, whose address is the same as that of the Kushner Companies real estate development business, was approved for $350,000 to $1 million. The company’s Chief Operating Officer, Peter Febo, responded, “Several of our hotels have applied for federal loans, in accordance with all guidelines, with a vast majority of funds going to furloughed employees.” The loans to Kushner-related companies were first reported by The Daily Beast.

In addition, up to $2 million was approved for the Joseph Kushner Hebrew Academy, a nonprofit religious school in Livingston, N.J., that’s named for Jared Kushner’s grandfather and supported by the family.

In April, a bank approved a loan of between $150,000 and $350,000 for the Pennsylvania dental practice of Albert Hazzouri, who golfs with Trump and frequents Mar-a-Lago, the president’s private club in Palm Beach, Florida. In 2017, Hazzouri used his access to the president to pass him a policy proposal on club stationery on behalf of the American Dental Association. He addressed the note to Trump “Dear King.”

Hazzouri also leaned on his relationship with Trump in an unsuccessful bid to obtain a dentistry license to expand his business in Florida. Hazzouri didn’t immediately return calls seeking comment Monday.

Firms tied to the president’s children also stand to benefit from the program. A small indoor lettuce farming business applied for funds between $150,000 and $350,000, SBA data show. Trump Jr. had invested in Eden Green Technology, a vertical farming company just south of Dallas, whose co-chair, Gentry Beach, was a Trump campaign fundraiser.

Trump Jr. purchased his shares as Beach sought Trump administration funding for his other global business interests, ProPublica first reported in December 2018.

The company has said Trump Jr. played no role in running Eden Green and was brought in during “U.S. friends and family fundraising efforts.” A spokesman, Trevor Moore, said that the company “followed the standard procedure” in applying for the PPP loan and that “receiving it has provided for the preservation of 18 jobs.” It’s not clear how much Trump Jr. invested or whether he’s been paid any dividends since purchasing his shares. Neither Trump Jr. nor a spokesman returned a message seeking comment.

Monday’s list included a Manhattan law firm whose marquee attorney has fiercely defended Trump for almost two decades. Kasowitz Benson Torres LLP — whose managing partner, Marc Kasowitz, was at one point the president’s top lawyer in the special counsel’s Russia investigation — was set to receive between $5 million and $10 million from Citibank, data show. (The largest loan a company could seek was $10 million.)

Once dubbed the “Donald Trump of lawyering” by The New York Times, Kasowitz represented Trump in the Trump University fraud lawsuit. and during the 2016 campaign he helped keep Trump’s 1990 divorce from being unsealed. ProPublica reported three years ago that Kasowitz bragged to friends that he made between $10 million and $30 million per year.

A law firm spokeswoman said its employees have maintained their full salary and benefits thanks to the PPP loan and “substantial cost-saving measures and greatly reduced partner distributions.” The firm has about 400 employees, data show. She said neither Kasowitz nor the firm had any conversations with anyone in the administration about the loan. Other major law firms, such as Boies Schiller Flexner and Wiley Rein, also received loans.

The loans helped a hospital executive tightly linked to another Trump attorney and confidant, Rudy Giuliani. Cottage Hospital, a 25-bed critical access facility in Woodsville, New Hampshire, received between $2 million and $5 million in PPP loans. The hospital’s CEO, Maria Ryan, is a longtime close associate of Giuliani’s.

During the last few years, Ryan has accompanied Giuliani on trips to Jerusalem, where the two visited the Hadassah Medical Organization, and to London, where they attended a two-game series between the Boston Red Sox and the New York Yankees. Last September, Giuliani brought Ryan to a state dinner at the White House.

Ryan currently co-hosts a talk radio show with Giuliani called “Uncovering the Truth.” She has referred to Giuliani, Trump’s personal lawyer, as her “business partner.” Cottage Hospital’s annual revenues typically exceed $30 million, according to its most recent publicly available federal tax return. Ryan’s salary, the last filing shows, is nearly $300,000.

“Mr. Giuliani has nothing to do with the PPP loan,” Ryan wrote in an email to ProPublica. “We applied like any other small business through our bank.”

The loan data released Monday does not reveal the $30 billion in loans that have been canceled. Nor does it provide specific dollar amounts, but instead ranges of loan amounts. Businesses that spend the money according to key provisions of the program, which mainly involve continuing to pay workers, will have the loans forgiven.

Last week, Trump signed legislation to extend the program until early August.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

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‘Free Handout to Insurance Industry’: Trump Administration Tells Insurers They Don’t Have to Cover Covid-19 Tests for Workers

“According to the Trump administration, insurance company profits are more important than the lives of nursing home residents and workers.”

By Jake Johnson, staff writer for Common Dreams. Published 6-25-2020

Coronavirus Task Force press briefing – March 2, 2020. Photo: White House/flickr

The Trump administration issued policy guidance this week telling health insurance companies that they are not required by law to cover the Covid-19 tests employers may compel workers to undergo as a condition for returning to their jobs.

The announcement (pdf) Tuesday by the Departments of Treasury, Labor, and Health and Human Services alarmed healthcare advocates and lawmakers who warned the move gives profitable insurers a green light to push the costs of potentially expensive coronavirus screenings onto workers. Continue reading

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‘Exploitation of a Pandemic to Reshape Immigration Law’: Trump Order on Worker Visa Restrictions Sparks Outrage

“As long as the Trump administration is in office, they will continue to look for excuses to justify extending this ban.”

By Andrea Germanos, staff writer for Common Dreams, Published 6-23-2020

Screenshot: YouTube

President Donald Trump was accused of exploiting the coronavirus pandemic to advance his administration’s anti-immigrant agenda in response to his Monday order expanding restrictions on temporary worker visas.

“This is another thinly-veiled attempt to implement radical changes to our immigration system, and to limit the number of non-citizens who are able to come to the U.S.,” tweeted the American Immigration Council. “This is not about public health or the economy.” Continue reading

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With ‘Systemic Violations’ of Worker Rights, US Comes in Dead Last in Labor Rankings of Wealthy Nations

The U.S. was identified as a country where “the government and/or companies are engaged in serious efforts to crush the collective voice of workers, putting fundamental rights under threat.”

By Julia Conley, staff writer for Common Dreams. Published 6-18-2020

Amazon warehouse. Photo: Scott Lewis/flickr/CC

The International Trade Union Confederation’s world map showing its rankings of the best and worst countries for working people includes a noticeable difference between the U.S. and other wealthy countries.

Dark orange in color on the map, the U.S. was singled out by the ITUC this year as the only country in the Group of Seven to have “systematic violations of rights” in work places. Continue reading

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Leading US Retirees ‘Like Lambs to the Slaughter,’ Trump Labor Dept. Quietly Offers Up 401k Plans to Private Equity Vultures

“Private equity firms will now be allowed to access—and skim fees off of—the $9 trillion in 100 million workers’ 401(k) plans and IRAs.”

By Jake Johnson, staff writer for Common Dreams. Published 6-16-2020

Stephen Schwarzman, co-founder and CEO of Blackstone, at the Annual Meeting 2018 of the World Economic Forum in Davos. Photo; World Economic Forum/flickr/CC

With the American public’s attention consumed by the Covid-19 pandemic and mass protests against police brutality, the U.S. Labor Department earlier this month quietly gave corporate sponsors of retirement plans something they’ve been agitating over for years: a government green light to invest workers’ savings into funds managed by notoriously predatory private equity firms.

The move, announced on June 3 by Labor Secretary Eugene Scalia, allows large managers of 401(k) plans and individual retirement accounts (IRAs) to put workers’ retirement savings into private equity investments that offer the possibility of huge returns—and devastating losses. Continue reading

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Global Digital Divide a ‘Barrier to Wider Equality’ That Must Be Closed, Says World Wide Web Inventor Tim Berners-Lee

“This inequality is a barrier to wider equality, and we know it most affects those who are already marginalized.”

By Eoin Higgins, staff writer for Common Dreams. Published 6-12-2020

British computer scientist Tim Berners-Lee gives a speech at MIT in 2018. (Photo: Belinda Lawley/Southbank Centre/Flickr/cc)

The inventor of the World Wide Web is warning that global inequality is being exacerbated by a lack of access to the internet for the poor and urging world leaders to act to close the gap and ensure equity of opportunity for those in developing countries.

“This inequality is a barrier to wider equality, and we know it most affects those who are already marginalized,” Tim Berners-Lee said during remarks at the launch of U.N. Secretary General António Guterres’ Roadmap for Digital Cooperation Thursday. Continue reading

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‘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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The right to refuse unsafe work is more important than ever — but expect a fight

Photo: USDA

By Kathy Wilkes. Published 6-7-2020 by Huck/Konopacki Cartoons

The COVID-19 pandemic is taking a heavy toll on workers. Reports of job hazards grow increasingly dire as several governors and President Trump push past CDC guidelines to “reopen” the economy while forecasts predict soaring infections and deaths.

Some states at the direction of the Labor Department threaten termination of unemployment benefits for workers fearing return to dangerous jobs. A disturbing June 5 New York Times’ report reveals how far those machinations have gone. The result: workers fired without pay or benefits or trapped in a deadly vice between poverty and disease. Continue reading

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Staffer Outrage, Sickout Spurred by NYT Publication of Sen. Cotton ‘Send in the Troops’ Op-Ed

“Running this puts @nytimes’ Black staff in danger.”

By Andrea Germanos, staff writer for Common Dreams. Published 6-4-2020

The New York Times’s decision to publish Sen. Tom Cotton’s op-ed calling for U.S. military to quell the nationwide protests over the police killing of George Floyd has drawn sharp rebuke, including from the newspaper’s own writers. (Photo: Ajay Suresh/Wikimedia Commons/cc)

The New York Times‘s Wednesday publication of Sen. Tom Cotton’s op-ed calling for the U.S. military to respond to ongoing protests across the nation with an “overwhelming show of force” sparked outcry from the newspaper’s own staffers and a “sickout” protest Thursday.

Among the staff critics was 2020 Pulitzer Prizer winner Nikole Hannah-Jones. “I’ll probably get in trouble for this, but to not say something would be immoral,” she tweeted Wednesday. “As a black woman, as a journalist, as an American, I am deeply ashamed that we ran this.” 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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