Source: Moiz Syed and Derek Willis, Pro Publica, Coronavirus Bailouts, July 7, 2020
As part of the Paycheck Protection Program, the federal government provided up to $659 billion in financial support to banks to make low-interest loans to companies and nonprofit organizations in response to the economic devastation caused by the coronavirus pandemic. Search the loans approved by lenders and disclosed by the Small Business Administration (SBA).
Source: Good Jobs First, 2020
A new website from Good Jobs First combines CARES Act recipient data and accountability information on the companies from Violation Tracker, Subsidy Tracker and other sources.
The 2020 Coronavirus Aid, Relief, and Economic Security Act (or CARES Act) provides hundreds of billions of dollars in assistance to large and small corporations whose operations have been disrupted by the Covid-19 pandemic. The public deserves to know which companies are receiving the assistance and whether aid is flowing to firms with a poor record of corporate accountability.
Covid Stimulus Watch answers those needs. It assembles CARES Act recipient data and combines it with information about each firm’s history of regulatory violations, previous government assistance, federal tax avoidance, and CEO and worker pay practices.
Source: State Policy Reports, Vol. 37 no. 19, October 2019
The high cost of disaster assistance has been on the federal government’s radar for some time. This year, the feds took a step toward doing something about it.
Source: Senay Agca, Deniz Igan, Fuhong Li, Prachi Mishra, International Monetary Fund (IMF), IMF Working Paper No. 19/172, August 2019
From the abstract:
Why do firms lobby? This paper exploits the unanticipated sequestration of federal budget accounts in March 2013 that reduced the availability of government funds disbursed through procurement contracts to shed light on this question. Following this event, firms with little or no prior exposure to the federal accounts that experienced cuts reduced their lobbying spending. In contrast, firms with a high degree of exposure to the cuts maintained and even increased their lobbying spending. This suggests that, when the same number of contractors competed for a piece of a reduced pie, the more affected firms likely intensified their lobbying efforts to distinguish themselves from the others and improve their chances of procuring a larger share of the smaller overall. These findings are stronger in government-dependent sectors and when there is intense competition. The evidence is more consistent with a rent-seeking explanation for lobbying.
Source: Boards Of Trustees Of The Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, April 22, 2019
From the press release:
Today, the Medicare Board of Trustees released their annual report for Medicare’s two separate trust funds — the Hospital Insurance (HI) Trust Fund, which funds Medicare Part A, and the Supplementary Medical Insurance (SMI) Trust Fund, which funds Medicare Part B and D. The report found that the HI Trust Fund will be able to pay full benefits until 2026, the same as last year’s report. For the 75-year projection period, the HI actuarial deficit has increased to 0.91 percent of taxable payroll from 0.82 percent in last year’s report. The change in the actuarial deficit is due to several factors, most notably lower assumed productivity growth, as well as effects from slower projected growth in the utilization of skilled nursing facility services, higher costs and lower income in 2018 than expected, lower real discount rates, and a shift in the valuation period.
Medicare’s fiscal outlook deteriorates as 2026 funding cliff looms, Trump administration says
Source: Jeff Stein, Washington Post, April 22, 2019
Medicare, Social Security face shaky fiscal futures
Source: Andrew Taylor, Associated Press, April 22, 2019
Source: U.S. Government Accountability Office, GAO-19-314SP, April 2019
From the summary:
This report provides an update on the nation’s fiscal health as of the end of FY 2018, and describes its likely fiscal future if policies don’t change.
Among its findings:
– The federal government’s current fiscal path is unsustainable
– The federal deficit increased to $779 billion—and will reach $1 trillion in the next few years for the first time since 2012
– Publicly held debt was 78% of GDP at the end of FY 2018 and will surpass its historical high of 106% within 13 to 20 years—sooner than projected last year
– Other agencies join GAO in saying that the longer action is delayed, the greater and more drastic the changes will have to be
– The 2018 Financial Report, the Congressional Budget Office, and GAO all project that federal debt held by the public will continue to grow unsustainably into the future.
Source: Dmitriy Plit, Florence Zeman, Kendra M. Smith, Moody’s, Sector Comment, February 27, 2019
Legislation signed by President Donald Trump this month includes a spending increase for the Public Housing Capital Fund, which provides public housing authorities (PHAs) with funds topay debt used to finance new developments and improvements. The capital fund program, run by the Department of Housing and Urban Development (HUD), will receive $2.78 billion, approximately a 1% increase compared to $2.75 billion in fiscal year 2018. The funding bump is credit positive for the PHA sector, coming on top of an approximately 42% increase last year after mostly flat funding from fiscal 2013-17.
Source: U.S. Government Accountability Office (GAO), GAO-19-178: Published: Jan 17, 2019. Publicly Released: Feb 5, 2019.
From the summary:
We were asked to examine the cost of 4 trips to the Mar-a-Lago resort by the President and 3 international trips by Donald Trump Jr. and Eric Trump between January and March 2017.
– that federal agencies spent about $13.6 million for the Mar-a-Lago trips. The Departments of Defense and Homeland Security incurred most of the costs—about $8.5 million and $5.1 million, respectively. This excludes certain classified cost information.
– the Secret Service spent about $396,000 protecting the President’s sons and their spouses on 3 international trips.
We recommended that agencies comply with reporting requirements for protection costs.
Source: Rebecca Karnovitz, Atsi Sheth, Madhavi Bokil, William Foster, Nicholas Samuels, Bruce Herskovics, Anne Van Praagh, Moody’s, Sector In-Depth, January 28, 2019
On January 25, US President Donald Trump signed a short-term spending bill to reopen the federal government of the United States (Aaa stable) until Feb. 15 while negotiations continue on his proposal to build a wall along the country’s southern border. If the impasse is not resolved in the next three weeks, the president said the government will either shut down again or he will use emergency powers under the US Constitution to move forward with his border security proposal. In this report, we answer some of the key questions about the credit effects of the 35-day partial government shutdown – the longest such closure in US history – and the potential ramifications of another shutdown…..
Source: Congressional Budget Office, January 2019
From the summary:
CBO estimates that the partial shutdown delayed $18 billion in federal spending and suspended some federal services, thus lowering the projected level of real GDP in the first quarter of 2019 by $8 billion (in 2019 dollars), or 0.2 percent.