All articles tagged with #covid 19 relief funds
Nineteen USPS workers in central Illinois have been indicted for wire fraud in connection with COVID-19 relief funds. The workers allegedly submitted false applications to receive financial assistance intended for those affected by the pandemic.
Fraudsters have reportedly misappropriated over $200 billion in COVID-19 relief funds intended to support struggling small businesses during the pandemic, according to a report by the inspector general of the Small Business Administration (SBA). The report reveals that approximately 17% of the $1.2 trillion disbursed by the SBA through the COVID-19 Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) were potentially fraudulent claims. Loose controls and the rush to distribute funds contributed to the ease with which fraudsters gained access to these programs. The Justice Department has initiated over 140 cases of fraud, with estimates suggesting that the total value of fraudulently obtained PPP loans could be in the billions. Efforts are underway to recover the stolen funds, with ongoing investigations and congressional hearings.
Some Michigan hospitals and health systems posted increases in operating profits and overall net assets during the pandemic, with a large portion of those profits coming from COVID-19 relief programs established by the federal government. The Coronavirus Aid, Relief, and Economic Security Act, Paycheck Protection Program, and Coronavirus Response and Relief Supplemental Appropriations Act provided a total of $178 billion to hospitals and healthcare providers across the U.S. on the front lines of the COVID-19 response. Michigan providers received a total of more than $4 billion from those programs.
President Biden signed a bill to raise the debt ceiling into 2025, which includes agreements on spending caps, claws back unused COVID-19 relief funds, adds work requirements for certain individuals getting government assistance, and rescinds some of the funding provided to the IRS in last year’s Inflation Reduction Act. The bill was passed with bipartisan support in both the Senate and the House. The legislation was the product of weeks of negotiations between Biden and Speaker Kevin McCarthy (R-Calif.) and their respective teams.
Florida Governor Ron DeSantis criticized the bipartisan debt ceiling deal, stating that the country is still "careening towards bankruptcy." The deal lifts the debt ceiling and holds spending flat through the 2024 presidential election, while allowing nondefense spending to increase by 1 percent in 2025. Republicans have been highly critical of the deal, with some calling it "insanity." DeSantis, who recently announced his 2024 presidential bid, believes the deal is inadequate to improve the country's financial situation.