Tag: economic relief bill

Recovery law allows Fed to rope off public as it spends billions

A little-noticed provision of the Senate bill exempts board members from a wide swath of the federal open-meetings law.

Tucked into the recent recovery bill was a provision granting the Federal Reserve the right to set up a $450 billion bailout plan without following key provisions of the federal open meetings law, including announcing its meetings or keeping most records about them, according to a POLITICO review of the legislation.

The provision further calls into question the transparency and oversight for the biggest bailout law ever passed by Congress. President Donald Trump has indicated he does not plan to comply with another part of the new law intended to boost Congress’ oversight powers of the bailout funds. And earlier this week, Trump dismissed the government official chosen as the chief watchdog for the stimulus package.

The changes at the central bank – which appear to have been inserted into the 880-page bill by sympathetic senators during the scramble to get it approved — would address a complaint that the Fed faced during the 2008 financial crisis, when board members couldn’t easily hold group conversations to address the fast-moving economic turmoil. Continue reading.

Pelosi, Schumer want aid to states, hospitals in GOP small business bill

The Hill logoSpeaker Nancy Pelosi (D-Calif.) and Senate Democratic Leader Charles Schumer (N.Y.) say a Republican request to funnel an additional $250 billion to a special small-business loan program for the coronavirus crisis must also include hundreds of billions of dollars for hospitals, state and local governments and food assistance.

“As Democrats have said since Day One, Congress must provide additional relief for small businesses and families, building on the strong down-payment made in the bipartisan CARES Act,” they said in a statement Wednesday morning.

The Democratic response comes a day after Senate Majority Leader Mitch McConnell (R-Ky.) said he would ask for unanimous consent on the Senate floor Thursday to approve an additional $250 billion in funding for the popular small-business Paycheck Protection Program. Continue reading.

Pressure mounts on Congress for quick action with next coronavirus bill

The Hill logoLawmakers are facing mounting pressure to move to the next phase of coronavirus legislation, less than two weeks after passing a historic $2.2 trillion economic relief bill.

While the most recent round of federal funding was unprecedented in its scope and scale, the delivery of the aid to its intended targets has been hobbled by administrative and other logistical pitfalls, causing delays in distribution and sparking widespread anxieties about when the assistance will reach businesses, families and workers hardest hit by the swift-moving pandemic.

Those problems have unfolded just as President Trump and his public health team are warning that the next two weeks could prove to be one of the most trying stretches in modern American history, as the number of cases and deaths are expected to spike and governments at every level implement ever-more-stringent self-isolation measures, which have already devastated businesses large and small across the country. Continue reading.

Pelosi, McConnell clash over next coronavirus bill

The Hill logoSpeaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Mitch McConnell(R-Ky.) are publicly at odds over a potential fourth coronavirus package.

The two leaders, whose public relationship has been tense in recent weeks, are taking different tactics on follow-up legislation and sparring through the media on next steps to address the devastating economic and health effects of the pandemic.

The mixed messaging, which comes as lawmakers are out of town until at least April 20, underscores the looming challenge of keeping the congressional response to the coronavirus bipartisan. The first three bills passed with overwhelming support on both sides of the aisle. Continue reading.

Confusion surrounds launch of $349B in small-business loans

The Hill logoBanks and industry groups say a new rescue lending program for small businesses is off to a rocky start and may fall far short of what firms need to stay afloat during the economic fallout from the coronavirus.

The Treasury Department and Small Business Administration (SBA) on Friday rolled out applications for small businesses to receive forgivable loans for payroll and other basic expenses amid the economic toll of the coronavirus.

But banks, credit unions and other lenders say the $349 billion program lacks clear guidelines to handle a looming wave of loan applications that could overwhelm the system while leaving some firms in the lurch. Continue reading.

Small businesses can apply for forgivable COVID-19 loans Friday

Emergency loans were part of the economic rescue package enacted last week

Small businesses shuttered by coronavirus countermeasures can start applying for emergency loans to cover payroll and other costs as soon as Friday, according to Treasury Department guidance.

The Treasury published fact sheets for lenders and borrowers Tuesday for the $349 billion Paycheck Protection Program that was part of the $2.3 trillion economic lifeline package enacted March 27.

The program is relying on the Small Business Administration’s existing network of around 1,800 banks and credit unions in its Section 7(a) loan guaranty program to provide small businesses forgivable loans to cover payroll and other fixed costs while government COVID-19 containment measures shut down large swaths of the economy. Continue reading.

Mnuchin emerges as key asset in Trump’s war against coronavirus

The Hill logoTreasury Secretary Steven Mnuchin has taken on an outsized role in the Trump administration’s response to the coronavirus, serving as a key conduit between President Trump and Congress. 

Mnuchin has helped shepherd through two massive legislative packages aimed at helping address the public health crisis and the ensuing economic fallout, engaging constantly with Democratic leaders despite the considerable partisan divide that has plagued Washington.

“We had had Secretary Mnuchin and Mr. Mulvaney and others, and I think both Republicans and Democrats made it very clear the person they wanted to talk to with was Secretary Mnuchin,” said Senate Appropriations Vice Chairman Patrick Leahy (D-Vt.), referencing Trump’s outgoing acting chief of staff Mick Mulvaney. Continue reading.

Relief package billions can’t buy hospitals out of shortages

The billions of tax dollars headed for hospitals and states as part of the $2.2 trillion coronavirus response bill won’t fix the problem facing doctors and nurses: a critical shortage of protective gowns, gloves and masks.

The problem isn’t a lack of money, experts say. It’s that there’s not enough of those supplies available to buy. What’s more, the crisis has revealed a fragmented procurement system now descending into chaos just as demand soars, The Associated Press has found.

Hospitals, state governments and the Federal Emergency Management Agency are left bidding against each other and driving up prices. Continue reading.

Joe Manchin nails Mitch McConnell: You’re “more concerned about the health of Wall Street”

Sen. Joe Manchin erupts into shouting match with McConnell over Senate Republicans’ coronavirus bailouts

Sen. Joe Manchin (D-WV) called out Senate Majority Leader Mitch McConnell (R-KY) on Monday for being more concerned with propping up the economy than providing supplies to hospitals fighting the novel coronavirus.

“You can throw all the money at Wall Street you want to,” Manchin said after McConnell blamed Democrats for a stalled stimulus bill. “People are afraid to leave their homes. They’re afraid of the health care. I’ve got workers who don’t have masks. I’ve got health care workers who don’t have gowns.”

“And it looks like we’re worried more about the economy than we are the health care and the wellbeing of the people of America,” the West Virginia senator complained. Continue reading.

Rep. Phillips Responds to President Trump’s Rejection of Oversight Language in Stimulus

Phillips helped secure key legislation that mandates a Congressional Oversight Commission for a $500 billion fund

WASHINGTON, D.C. – Just hours after signing a historic $2.2 trillion stimulus package, President Trump announced that he would attempt to reject certain elements the bill, including provisions introduced by Rep. Dean Phillips (MN-03) mandating oversight over the spending, including a five-person Congressional Oversight Commission for the $500 billion Treasury Department fund.

“This is the most significant distribution of taxpayer money in human history. Everybody in this country, Republicans, Democrats, and independents agree – we want to see our tax dollars used effectively, efficiently and with accountability and oversight,” Phillips said during an interview with Alex Witt on MSNBC.

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Click here to watch the full interview. Continue reading “Rep. Phillips Responds to President Trump’s Rejection of Oversight Language in Stimulus”