Federal Investigators Want More Money to Go After Pandemic Fraud

Merrick Garland DOJ

The federal officials tasked with tracking down widespread fraud during and after the COVID-19 pandemic want more time and more money to finish the job.

The Justice Department’s COVID-19 Fraud Enforcement Task Force, made up of nearly 30 federal agencies, released its 2024 report on Tuesday. The report details the efforts of the task force in response to fraud involving COVID-19 relief programs.

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Teacher Courses Promoting Critical Race Theory Were Funded by Michigan Pandemic Relief

Michigan Gov. Gretchen Whitmer used federal pandemic relief funds to create virtual courses for teachers about anti-racism and social justice, which encouraged teachers to engage with sources espousing critical race theory.

The CARES Act in 2020 included funds for governors to award to education-related entities via the Governor’s Emergency Education Relief (GEER) Fund. Whitmer and state officials allotted $1.4 million to Michigan State University College of Education, the University of Michigan’s School of Education and Michigan Virtual to create professional learning modules for K-12 teachers.

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IG Reports ‘Historic’ COVID Unemployment Funds Lost, Congress Investigates

Reports indicate as much as $400 billion in COVID-19 unemployment relief were likely lost to waste and fraudsters. Lawmakers want answers.

Republicans on the House Ways and Means Committee sent a letter to the U.S. Department of Labor demanding documents and information related to the unemployment fraud.

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States Want a $20 Billion Federal Top-Off to ‘Zuck Bucks’ for Future Elections But They’re Already Sitting on a Pile

Graffiti of Mark Zuckerberg "You've been zucked"

Drawing on research from a multimillion-dollar Mark Zuckerberg-linked initiative viewed as pivotal in the 2020 presidential election, 14 states carried by Joe Biden have appealed to him for billions of dollars more to secure elections for the next decade. But most of them have spent less than half their shares of previous federal funding to counter alleged Russian election meddling and other “threats” to election security.

The states’ letter to the president cites a report by the Election Infrastructure Initiative, a progressive nonprofit that estimates $53 billion in taxpayer money will be needed to ensure election security over the next decade.

The Election Infrastructure Initiative is an arm of the Center for Tech and Civic Life, which in 2020 distributed nearly $400 million in private grants – $350 million from Zuckerberg and his wife, Priscilla Chan – to local election offices in 48 states and the District of Columbia for the pandemic-challenged presidential election.

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Small Business Administration Spends $14.8 Million in Questionable Costs for Underutilized Small Business Portal

U.S Small Business Administration

This week’s Golden Horseshoe is awarded to the Small Business Administration for lax oversight of a $25 million grant for the creation of a COVID-19 relief small business portal that ran up $14.8 million in questionable costs for an underutilized hub, according to a report by the agency’s Office of Inspector General.

The SBA’s Office of Entrepreneurial Development (OED) received $25 million through the CARES Act to create a portal to help small businesses during the pandemic. An $18.6 million grant was awarded for the Resource Partner Training Portal program, but the intended results were not achieved. A combination of a failed marketing strategy to let small businesses know of the portal’s existence and unsupported or unallowable invoices led the inspector general to question $14.8 million in costs.

“SBA did not did not ensure the grant recipient developed and implemented an effective marketing and outreach strategy to ensure the hub successfully achieved the legislative purpose of the CARES Act,” Inspector General Hannibal “Mike” Ware stated in the report.

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Universities That Received Billions in COVID Relief Are Still Imposing Delays, Remote Instruction

In 2020, the federal government gave American colleges and universities approximately $14 billion in relief through the CARES Act. As part of the $2.2 trillion COVID-19 stimulus package, the CARES Act allocation mandated that approximately half its funds be used for emergency student aid.

Now, nearly two years after President Donald Trump signed the CARES Act in March 2020, numerous institutions that received aid are delaying in-person learning due to the Omicron variant.

By Jan. 7, seven out of 10 University of California campuses announced “revisions to their winter quarter or winter semester plans.” Winter sessions precede the spring semester, which traditionally starts in mid-to-late January.

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Commentary: Democrat Spending Bill Taxes the Rich and the Poor

“No one got everything they wanted, including me, but that’s what compromise is. That’s consensus. And that’s what I ran on.”

That was President Joe Biden on Oct. 28 unveiling his latest $1.75 trillion spending bill—watered down from $3.5 trillion after Sen. Joe Manchin (D-W.Va.) refused to budge on the topline number—that Congress is expected to vote on this week.

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Commentary: IRS Guidance Would Punish Small Business Owners with Families

Outside of IRS building

Most IRS guidance documents make for poor pleasure reading. Then again, most IRS guidance doesn’t effectively impose a retroactive tax on small business owners merely for having a family. IRS Notice 2021-49, issued on August 4, includes a bizarre interpretation of the law that will effectively raise taxes for business owners with close relatives, even if their family members have no involvement in the company.

A core goal of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed early on in the pandemic was to assist businesses in keeping employees on their payroll even as they dealt with the economic effects of lockdowns. Part of the plan was the Employee Retention Tax Credit (ERTC), which provides a tax credit against employer payroll tax liabilities.

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Atlanta, Dallas, Tampa, and St. Louis Among the Cities Experiencing the Highest Consumer Price Spikes

Throughout the COVID-19 pandemic, the Federal Reserve Bank and Congress have taken unprecedented steps to stabilize the economy after entire industries and sectors ground to a halt last year amidst the public health crisis. The Fed has kept interest rates near zero, created lending programs to pump trillions of dollars into the economy, and bought securities to support financial markets. Congress passed three major COVID-19 stimulus packages in response to the crisis: the $2.2 trillion CARES Act in March 2020, the $900 billion Coronavirus Response and Relief Supplemental Appropriations Act in December 2020, and the $1.9 trillion American Rescue Plan in March 2021.

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Billions of Coronavirus Stimulus Money Still Hasn’t Been Spent, Republican Senators Say in Letter to Biden

US Capitol

A group of ten Republican senators outlined a less expensive coronavirus relief compromise bill and said much of the past stimulus passed during the pandemic hasn’t been spent yet.

The proposed stimulus framework builds on prior legislation that passed with bipartisan support, the 10 senators wrote in the letter Sunday. The group, which included Sens. Mitt Romney, Thom Tillis, Susan Collins and Lisa Murkowski, also requested a meeting with President Joe Biden to discuss the bill.

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Michigan House Approves $465 million COVID-19 Relief Funding Bill

The Michigan House on Monday approved a $465 million supplemental budget bill to provide relief to Michiganders in the COVID-19 pandemic.

Senate Bill 748 aims to provide $64 million in small business survival relief; $220 million to extend unemployment benefits through April 1, 2021; $75 million for hospitals and health care workers; $22 million for increased testing; and $57 million for vaccine distribution.

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Three Million Dollars Available to Some Small Businesses for Temporary Outdoor Winterization

The Small Business Association of Michigan and the Michigan Department of Labor and Economic Opportunity (LEO) are giving out $3 million in weatherization grants to help some small businesses expand outdoor capacity during winter.

Eligible businesses may apply to receive between $1,000 and $10,000 in funding for weatherized, temporary outdoor facilities, while eligible municipalities and local organizations may apply to receive up to $15,000.

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Commentary: Pelosi Holds Millions of Small Businesses Hostage While Working Families Struggle

At the height of the COVID-19 pandemic, when a lot less was known about the virus and how to counter it, and while the nation was still ramping up production of testing and hospital resources including ventilators needed, 25 million jobs were lost across the country, according to Bureau of Labor Statistics data.

Since labor markets bottomed in April, 13.8 million jobs have been recovered, as states have begun steadily reopening in the months since.

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Study: 68 Percent of Workers Earned More on Unemployment with $600 Weekly Enhancement

Some unemployed workers received nearly twice as much money through unemployment insurance (UI) payments authorized through the CARES Act than they earned when they were employed, a new study from the Foundation for Government Accountability (FGA) found.

In response to states shutting down economies over coronavirus fears, Congress passed several relief bills, including the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These two bills expanded the UI benefit period, suspended work search requirements, included newly eligible individuals, and added a $600-per-week unemployment benefit enhancement through July 31.

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Treasury Department: States, Local Governments Spend Only 25 Percent of CARES Act Subsidies

As deliberations continue in Congress over how to allocate another $1 trillion worth of stimulus money, governors and mayors say they need more than the $139 billion already allocated to their states in March to cover revenue shortfalls.

A total of $150 billion was allocated to help state, local and tribal governments with specific COVID-19 response programs.

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Federal Unemployment Benefits Expiring as Democratic Leaders Demand Non-COVID-19 Related Policies

The additional $600 weekly federal unemployment benefits expire Friday after Speaker of the House Nancy Pelosi and Senate Minority Leader Chuck Schumer rejected a White House offer to temporarily extend them.

Senate Majority Leader Mitch McConnell said Thursday that, “Senate Republicans tried several ways to extend the expiring unemployment assistance. Democrats blocked them all and refused another dime for COVID-19 relief unless they get to pass a bill that includes an unrelated tax cut for rich people in blue states.”

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Senate Republicans Propose New $1 Trillion Coronavirus Relief Package

Senate Republicans’ latest COVID-19 stimulus package proposes another round of direct payments to Americans and more enhanced federal unemployment benefits for workers who lose their jobs during coronavirus restrictions.

The $1 trillion package, called the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act was released Monday.

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Democrats Seek Coronavirus Aid Bill Provision to Limit Federal Agents from Patrolling Cities

Senate Democrats are planning to insert a provision in the coronavirus relief bill that would place restrictions on the Trump administration’s ability to send federal agents to help quell protests in cities across the country.

The provision would require federal agents to identify themselves, use marked vehicles and stay on federal property rather than patrol city streets, Senate Minority Leader Chuck Schumer said Monday, according to NBC News. Local officials including mayors and governors would need to approve the use of federal agents patrolling streets.

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Study: Unemployment Pays Better Than Work for 68 Percent of U.S. Workers

The federal unemployment insurance emergency payments of an additional $600 per week to those laid off because of COVID-19 restrictions discourages work and slows down economic recovery, several reports indicate. Several congressmen have introduced proposals to address the issue.

A report published by the Foundation for Government Ability (FGA) found that by nearly tripling average unemployment benefits through the CARES Act, “Congress has created a situation where unemployment now pays better than work” for roughly 68 percent of U.S. workers.

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Republican Lawmakers Introduce Bill to Cut Waste from Coronavirus Bill

U.S. Representatives Ted Budd (R-NC-13) and Ken Buck (R-CO-04) introduced the Getting Americans Back to Work Act to amend a portion of the CARES Act, which resulted in some unemployed filers receiving higher wages through unemployment compensation than through their previous jobs.

The bill caps the amount an individual can receive from unemployment insurance at 100 percent of their previous wages.

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Democrats’ $3 Trillion ‘Relief’ Package Declared Dead-on-Arrival, Republicans Say

A new Democratic bill proposed by U.S. House Speaker Nancy Pelosi (D-CA), without input from Republicans or the Trump administration is “dead on arrival,” top Republican leaders say.

The White House has said it wants to wait and see how the $3 trillion Congress already allocated will impact the economy and help Americans suffering from the economic shutdown due to the coronavirus.

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Former Warren Aide on Commission Overseeing COVID Stimulus Is Married to Lawyer Who Defends Big Corporate Clients

One of the regulators pegged to oversee the coronavirus stimulus is married to a corporate attorney who touts her history of defending companies in civil and criminal enforcement cases before the Security and Exchange Commission (SEC), public records show.

Senate Minority Leader Chuck Schumer tapped attorney Bharat Ramamurti to sit on the Congressional Oversight Commission, a five-member panel Congress created in March to oversee the $2.2 trillion stimulus package. The commission’s statute does not explicitly require members to disclose their finances, though three of the members are obligated to provide disclosures as they are lawmakers.

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Commentary: Liberals Seek to Use Coronavirus to Bail Out Reckless Spending for State and Local Governments

Americans have come together in the fight against the invisible enemy, but this situation has been made worse by some politicians who seek to take advantage of this pandemic and our recovery while so many are suffering. President Trump has been working around the clock to slow the spread of the Wuhan virus and get the economy going again, but Nancy Pelosi and Chuck Schumer have used this crisis to push their radical socialist agenda and grow the size of government. Twice now, Nancy Pelosi held American families, workers, and businesses hostage for days by delaying relief funding in the name of securing tens of millions of dollars for the Kennedy Center, pushing her Green New Deal, changing voting laws, and growing government to advance her radical socialist agenda.

Even more recently, there have been calls to give handouts to failing state and local governments, not because of the coronavirus, but because these states have been mismanaged and run irresponsibly. The American taxpayer should not bail out state and local governments for the reckless fiscal decisions made before the coronavirus.

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SBA: 2.2 Million Loans, $175B Issued So Far in 2nd Round of Paycheck Protection Program

The Small Business Administration and the U.S. Treasury revealed Sunday that the second round of the Paycheck Protection Program has issued 2.2 million loans, totaling $175 billion.

PPP loans are forgivable loans for small businesses to offset some of the losses experienced by the response to the COVID-19 pandemic. The loans are meant to provide a direct incentive for small businesses to keep their workers on the payroll.

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Failed Presidential Candidate Julian Castro Says Federal Relief Packages Should Include Illegal Aliens

Former 2020 Democratic presidential candidate Julian Castro said that those living unlawfully in the United States should be included in coronavirus relief packages doled out by the government.

Castro gave an interview to the Daily Kos divulging his thoughts on the recent coronavirus pandemic and how the United States should handle the crisis. Much like his time on the presidential campaign trail, Castro staked out progressive positions on the intersection of illegal immigration and role of American government.

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Wells Fargo Bows Out of Small Business Bailout Program After Receiving $10 Billion of Loan Applications

One of the largest banks in the United States announced that it is no longer accepting applications for a federal program aimed at rescuing small businesses affected by the coronavirus pandemic.

Wells Fargo has stopped accepting new applications for the government’s Paycheck Protection Program, an initiative created by the government to assist U.S. businesses that employ fewer than 500 people. The bank’s decision came after it was inundated with billions of dollars in loan requests since Friday.

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Commentary: $350 Billion of Forgivable Loans for 8 Weeks Won’t Be Enough to Save 30 Million Small Businesses

One of the key aspects of President Donald Trump and Congress’ $2.2 trillion coronavirus relief package are provisions for $350 billion for 30 million small businesses to cover payrolls for 60 million Americans for eight weeks to encourage people to stay home to wait out the Chinese coronavirus pandemic.

Along with the expanded unemployment and credit facilities covering critical industries and larger employers, the policy is designed to ensure that in saving as many lives as possible — the White House coronavirus task force has said as many as 2.2 million Americans could die without social distancing — we don’t find ourselves in a long, deep recession or depression as a result that might take a decade to recover from.

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Commentary: The Coronavirus Crisis Is President Trump’s Opportunity for Lasting Victories for His America First Agenda

When Rahm Emanuel told audiences that former President Barack Obama should “never let a serious crisis go to waste,” he was applauded. Emanuel was referring to the Obama Administration’s response to the Great Recession. Clearly, President Obama agreed. Obama ushered in the greatest reorganization of the American socio-economic order under the auspices of resolving the financial crisis (which, of course, Obama never actually did resolve).

Similarly, the outbreak of the novel coronavirus from Wuhan, China offers President Trump a momentous opportunity to enact his own sweeping agenda – all of which would be far more beneficial to the American people than Obama’s statism. Trump needs to press his advantage with as much vigor and alacrity as Obama pressed his during the financial crisis.

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Commentary: The Good, the Bad, and the Ugly in the Coronavirus Stimulus

The House of Representatives on Friday passed the Senate’s $2 trillion coronavirus relief package and sent it to the president. What initially began as a bill designed to help the workers and families hurt by job loss or disruption caused by government measures to fight coronavirus morphed into an 880-page behemoth.

Here are the highlights: the good, the bad, and the ugly.

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