Data: Congress created virus aid, then reaped the benefits
WASHINGTON (AP) — At least a dozen lawmakers have ties to organizations that received federal coronavirus aid, according to newly released government data, highlighting how Washington insiders were both author and beneficiary of one of the biggest government programs in U.S. history.
Under pressure from Congress and outside groups, the Trump administration this week disclosed the names of some loan recipients in the $659 billion Paycheck Protection Program, launched in April to help smaller businesses keep Americans employed during the pandemic. Connections to lawmakers, and the organizations that work to influence them, were quickly apparent.
Among businesses that received money was a California hotel partially owned by the husband of House Speaker Nancy Pelosi, as well as a shipping business started by Transportation Secretary Elaine Chao’s family. Chao is married to Senate Majority Leader Mitch McConnell.
Car dealerships owned by Republican Reps. Roger Williams of Texas and Mike Kelly of Pennsylvania, and fast-food franchises owned by Rep. Kevin Hern, R-Okla., received money. So, too, did a law firm owned by the husband of Sen. Jeanne Shaheen, D-N.H., and the former law firm of Rep. Matt Cartwright, D-Pa., which employs his wife.
Money also flowed to a farming and equipment business owned by the family of Rep. Vicky Hartzler, R-Mo., and a regional casino company led by the husband of Rep. Susie Lee, D-Nev.
Members of Congress and their families are not barred from receiving loans under the PPP, and there is no evidence they received special treatment. Loans were granted to Democrats and Republicans alike, something President Donald Trump’s campaign was quick to highlight when records showed donors to his campaign coffers were among the earliest beneficiaries.
Hundreds of millions of dollars also flowed to political consultants, opposition research shops, law firms, advocacy organizations and trade associations whose work is based around influencing government and politics.
While voting, lobbying and ultimately benefiting from legislation aren’t illegal, advocates say the blurred lines risk eroding public trust in the federal pandemic response as Congress begins debating yet another round of coronavirus relief.
“It certainly looks bad and smells bad,” said Aaron Scherb, a spokesperson for Common Cause, a watchdog group that was also approved for a loan through the program.
As of June 30, the Treasury Department program had handed out $521 billion to industries including manufacturing, construction, restaurants and hotels.
Treasury identified just a fraction of the total borrowers Monday, naming only companies that got more than $150,000. Those firms made up less than 15% of the nearly 5 million small companies and organizations that received assistance.
Many of the lawmakers connected to loan awards emphasized they weren’t part of the application process.
A spokesperson for Pelosi said her husband, Paul, is a minority investor in the company that owns the El Dorado Hotel in the wine-country town of Sonoma, Calif. Paul Pelosi has a 8.1% stake in the company, valued at $250,000 to $500,000, Pelosi’s office said.
“Mr. Pelosi is a minor, passive investor in this company,” said the Democratic speaker’s spokesperson, Drew Hammill. “He was not involved in or even aware of this PPP loan.” The firm, EDI Associates, is listed as a recipient of a loan between $350,000 and $1 million.
New York-based Foremost Maritime Co., founded by Chao’s parents and run by her sister, was cleared for a loan valued between $350,000 and $1 million. McConnell, a Republican seeking reelection in Kentucky, said Tuesday: “Neither my wife, nor I, have anything to do with that business and didn’t know anything about it.”