Please ensure Javascript is enabled for purposes of website accessibility
Data: Congress Created Virus Aid, Then Reaped the Benefits
gvw_ap_news
By Associated Press
Published 5 years ago on
July 8, 2020

Share

WASHINGTON — 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.
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.
Two wineries tied to Rep. Devin Nunes, R-Tulare, and an Iowa farm run by his family received loans worth at least $2 million. The wineries got separate loans worth $1 million to $2 million, and an Iowa dairy farm that is tied to his relatives received $150,000 to $350,000.
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 at least three Republican House members — Reps. Roger Williams of Texas, Vern Buchanan of Florida and Mike Kelly of Pennsylvania — received money. So, too, did fast-food franchises owned by Rep. Kevin Hern, R-Okla., 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.

Many of the Lawmakers Connected to Loan Awards Emphasized They Weren’t Part of Application Process

While voting, lobbying and ultimately benefiting from the 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.

Two wineries tied to Rep. Devin Nunes, R-Tulare, and an Iowa farm run by his family received loans worth at least $2 million. The wineries got separate loans worth $1 million to $2 million, and an Iowa dairy farm that is tied to his relatives received $150,000 to $350,000.
“It certainly looks bad and smells bad,” said Aaron Scherb, a spokesperson for Common Cause, a watchdog group whose education arm was also approved for a loan through the program. Members of Congress should not be allowed to vote on bills in which they can personally benefit, he said.
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.

Four Car Dealerships Owned by Kelly Received $600,000 to $1.4 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.”

Four car dealerships owned by Kelly received $600,000 to $1.4 million. Mike Kelly Automotive Group, Mike Kelly Automotive LP and Mike Kelly Hyundai and Kelly Chevrolet-Cadillac, all near Pittsburgh, received the money. A spokesman for Kelly said he wasn’t part of the loan application and isn’t involved in the operations of the dealerships, in accordance with ethics rules.
The Shaheen & Gordon law firm in Dover, New Hampshire, got a loan of $1 million to $2 million. The firm is owned by Jeanne Shaheen’s husband, William Shaheen. A title company partially owned by William Shaheen got a $160,000 loan and a half dozen companies he partially owns or another relative owns got loans, below $150,000.
Jeanne Shaheen said she “was not involved in any way in applying for those loans nor do I have anything to do with their businesses, and Congress had no role in processing PPP applications.”
Four car dealerships owned by Kelly received $600,000 to $1.4 million. Mike Kelly Automotive Group, Mike Kelly Automotive LP and Mike Kelly Hyundai and Kelly Chevrolet-Cadillac, all near Pittsburgh, received the money. A spokesman for Kelly said he wasn’t part of the loan application and isn’t involved in the operations of the dealerships, in accordance with ethics rules.
Williams, who had a net worth of over $27 million in 2018, received a loan for his Roger Williams Chrysler Dodge Jeep dealership in Weatherford, Texas. Williams is president and CEO of JRW Corp. of Fort Worth, which is listed as receiving a loan of $1 million to $2 million. “Like every other company who accepted a small business loan, our business qualified under law and regulation, and today over 100 of our employees are grateful that we did,” Williams said in a statement.

Other Lawmakers Sought to Portray the PPP Program as a Success Story

Buchanan, whose net worth is estimated at $74 million, received three loans for car dealerships totaling $2.7 million to $7 million. He told the Tampa Bay Times that he hoped any eligible small business “would use the program to make sure their workers continued to get paid during this difficult period.”
At least five car dealerships owned by the husband of Rep. Carol Miller, R-W.Va., also received loans, each ranging from $350,000 to $1 million, the data show.
Other lawmakers, while distancing themselves from the loan process, sought to portray the PPP program as a success story.
Hern’s Tulsa-based KTAK Corp., a management company for several McDonald’s restaurants, received $1 million to $2 million. Hern isn’t involved in the day-to-day operations, but “he is happy to share that the family business was able to keep all employees either at their current level of employment or move part-time employees to full time,” Hern’s chief of staff, Cameron Foster, said. Four businesses owned by fellow Rep. Markwayne Mullin, R-Okla., received at least $800,000.
Full House Resorts, a Las Vegas-based casino company led by Lee’s husband, Daniel, got two loans totaling $5.6 million, according to the Securities and Exchange Commission. The company said the funds would be used to rehire several hundred employees and prepare to reopen two casinos in Indiana and Colorado.
A spokesperson said Tuesday that Lee did not know about the company’s intention to apply for a loan when she and other Nevada lawmakers pushed for a rule change to allow small casinos to receive the loans. She had no influence over the application or any aspect of Full House’s business or decision making, spokesperson Jesus Espinoza said.

RELATED TOPICS:

DON'T MISS

Pope Francis in Critical Condition After Long Respiratory Crisis

DON'T MISS

Musk Gives All Federal Workers 48 Hours to Explain What They Did Last Week

DON'T MISS

Fresno State Suspends 2 Players, Removes Another Amid Gambling Investigation

DON'T MISS

Israel Delays Release of Palestinian Prisoners, Citing ‘Degrading’ Hostage Handovers

DON'T MISS

Officer Killed After Gunman Took Hostages at Pennsylvania Hospital

DON'T MISS

Kash Patel Plans to Move Up to 1,500 Workers Out of Washington

DON'T MISS

Fired Employees Fear Beloved Yosemite National Park Will Lose Its Luster

DON'T MISS

US and Ukraine Nearing Rare Earths Deal That Would Tighten Relationship

DON'T MISS

Trump Fires Chairman of the Joint Chiefs of Staff and Two Other Military Officers

DON'T MISS

Less Is More: 5 Ingredient Dinners Are Easier Than You Think

UP NEXT

Bullard Teacher Arrested for Inappropriate Behavior With a Minor, Principal Says

UP NEXT

Nearly 1 in 10 U.S. Adults Identifies as LGBTQ+, Survey Finds

UP NEXT

Arctic Blast Causes Massive Pileups, Power Outages Across East Coast

UP NEXT

Struggling Forever 21 Plans to Close 200 Stores in Possible 2nd Bankruptcy

UP NEXT

2 People Are Dead in a Small Plane Collision at a Southern Arizona Airport

UP NEXT

Official White House Account Declares Trump ‘King’ in Latest Post

UP NEXT

A$AP Rocky Returns to a Life of Music, Fashion, Film and Rihanna With His Acquittal

UP NEXT

Leonard Peltier Released After Biden Commuted Sentence in FBI Agents’ Killings

UP NEXT

Death of South Korean Actor at 24 Sparks Discussion About Social Media

UP NEXT

Former Vice President Kamala Harris to Be Honored by NAACP With Its Chairman’s Award

Israel Delays Release of Palestinian Prisoners, Citing ‘Degrading’ Hostage Handovers

4 hours ago

Officer Killed After Gunman Took Hostages at Pennsylvania Hospital

4 hours ago

Kash Patel Plans to Move Up to 1,500 Workers Out of Washington

11 hours ago

Fired Employees Fear Beloved Yosemite National Park Will Lose Its Luster

11 hours ago

US and Ukraine Nearing Rare Earths Deal That Would Tighten Relationship

11 hours ago

Trump Fires Chairman of the Joint Chiefs of Staff and Two Other Military Officers

11 hours ago

Less Is More: 5 Ingredient Dinners Are Easier Than You Think

11 hours ago

Trump-Putin Summit Preparations Are Underway, Russia Says

11 hours ago

Warren Buffett Offers Trump Some Advice While Celebrating Berkshire’s Success

11 hours ago

Hungarians Will Decide Whether Ukraine Can Join the European Union, Orbán Says

11 hours ago

Pope Francis in Critical Condition After Long Respiratory Crisis

ROME — Pope Francis was in critical condition Saturday after he suffered a prolonged asthmatic respiratory crisis while being treated for pn...

4 hours ago

4 hours ago

Pope Francis in Critical Condition After Long Respiratory Crisis

4 hours ago

Musk Gives All Federal Workers 48 Hours to Explain What They Did Last Week

4 hours ago

Fresno State Suspends 2 Players, Removes Another Amid Gambling Investigation

4 hours ago

Israel Delays Release of Palestinian Prisoners, Citing ‘Degrading’ Hostage Handovers

4 hours ago

Officer Killed After Gunman Took Hostages at Pennsylvania Hospital

11 hours ago

Kash Patel Plans to Move Up to 1,500 Workers Out of Washington

11 hours ago

Fired Employees Fear Beloved Yosemite National Park Will Lose Its Luster

11 hours ago

US and Ukraine Nearing Rare Earths Deal That Would Tighten Relationship

Help continue the work that gets you the news that matters most.

Search

Send this to a friend