May 13, 2020
A watchdog on the congressional committee tasked with overseeing the Trump administration's handling of Covid-19 bailout funds demanded an investigation Tuesday after Energy Secretary Dan Brouillette openly admitted in a television appearance that the White House pressed the Federal Reserve to alter one of its lending programs for the benefit of fossil fuel companies.
"We now know that Trump administration officials 'worked very closely with the Federal Reserve' to make these changes so taxpayer-backed loans would be available to oil and gas firms," tweeted Bharat Ramamurti, a member of the Congressional Oversight Commission. "How do we know? The Energy Secretary went on TV and said so."
In an interview on Bloomberg TV Tuesday, Brouillette, a former corporate lobbyist, said Treasury Secretary Steve Mnuchin "worked very closely with the Federal Reserve" to open one of the central bank's lending programs to the oil and gas industry.
"Here's one change the Treasury and the Fed didn't make: they didn't create any meaningful requirement that companies that get taxpayer-backed loans keep workers on payroll."
--Bharat Ramamurti, Congressional Oversight Commission
"We adjusted the program--the Main Street Lending Program--and made that program available to what we refer to as mid-cap size companies," said Brouillette.
The energy secretary went on to say that President Donald Trump personally directed him and Mnuchin "to evaluate the programs that were passed by the Congress and ensure that there is access for these energy industries to those programs."
"And that's what we've done," said Brouillette.
Watch:
Following Brouilette's remarks, Ramamurti said the Congressional Oversight Commission "should investigate these changes carefully."
"These Fed facilities are not supposed to direct aid specifically to certain companies or industries--particularly not ones that were in dire financial shape even before the coronavirus crisis began," said Ramamurti.
On April 30, the Fed announced an expansion of its Main Street Lending Program to include companies with as many as 15,000 employees or up to $5 billion in annual revenue.
While Fed officials insisted that the program was not adjusted to benefit any particular industry, Ramamurti noted at the time that the changes "mirror the top requests of the oil and gas industry."
"Here's one change the Treasury and the Fed didn't make: they didn't create any meaningful requirement that companies that get taxpayer-backed loans keep workers on payroll," said Ramamurti. "They also didn't add any requirement that those companies try to rehire workers they've already fired."
Ramamurti laid out how the Fed's changes resembled fossil fuel industry demands:
\u201cFirst change: The Fed originally said companies couldn\u2019t use generous taxpayer-backed loans to refinance existing debt. Today, it said companies could.\n\nHere\u2019s an oil and gas lobbying group asking for that exact change two weeks ago. 2/\n\nhttps://t.co/7z2M1QtGCq\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
\u201cSecond change: The Fed originally said the maximum loan was $150 million. Today, it said it would be $200 million.\n\nHere\u2019s the Energy Secretary saying two weeks ago the loans needed to be at least $200 million to help oil and gas companies. 3/\n\nhttps://t.co/CsjpLMGIVx\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
\u201cThird change: The Fed originally set a strict limit on how indebted a company could be to get a loan. Today, it dramatically weakened that limit. \n\nHere\u2019s a letter describing the original limit as a problem for oil and gas companies. 4/\n\nhttps://t.co/MUuI2dKSqb\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
In a statement after the Fed expanded its Main Street Lending Program last month, Western Values Project director Jayson O'Neill said "big oil and their lobby arm [the Independent Petroleum Association of America] are laughing all the way to the bank."
"Once again the Trump administration showed its true colors by serving up another taxpayer-funded bailout to its billionaire big oil corporate pals while ignoring needed help for American families and small businesses," said O'Neill.
According to a report released Tuesday by Friends of the Earth (FOE), the oil and gas industry has been heavily lobbying Congress in an effort to benefit from coronavirus relief funds.
"Big Oil is wasting no time exploiting the coronavirus for profit," said Lukas Ross, senior policy analyst at FOE. "Polluters fought hard for kickbacks in the first coronavirus stimulus package and they are undoubtedly up to it again. As Trump and the GOP continue their crusade to prop up Big Oil, we must stop the fossil fuel industry from snatching more taxpayer money."
Join Us: Everything is on the Line
The future of all that we cherish is on the line and we have to fight like hell to protect democracy, human decency, and a liveable planet. The last line of defense is people who understand what’s at stake—activists, writers, thinkers, doers, and everyday people who see what is happening, know in their hearts that a better world is possible, and are willing to fight for it. You are one of the good people Common Dreams was built for. We provide independent news, progressive opinion, and crucial analysis on the day’s most important issues. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. But to keep publishing and remain strong in these dangerous times, we need your support. So we’re asking you today: Will you donate to our Fall Campaign and keep the progressive, nonprofit journalism of Common Dreams alive? |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
A watchdog on the congressional committee tasked with overseeing the Trump administration's handling of Covid-19 bailout funds demanded an investigation Tuesday after Energy Secretary Dan Brouillette openly admitted in a television appearance that the White House pressed the Federal Reserve to alter one of its lending programs for the benefit of fossil fuel companies.
"We now know that Trump administration officials 'worked very closely with the Federal Reserve' to make these changes so taxpayer-backed loans would be available to oil and gas firms," tweeted Bharat Ramamurti, a member of the Congressional Oversight Commission. "How do we know? The Energy Secretary went on TV and said so."
In an interview on Bloomberg TV Tuesday, Brouillette, a former corporate lobbyist, said Treasury Secretary Steve Mnuchin "worked very closely with the Federal Reserve" to open one of the central bank's lending programs to the oil and gas industry.
"Here's one change the Treasury and the Fed didn't make: they didn't create any meaningful requirement that companies that get taxpayer-backed loans keep workers on payroll."
--Bharat Ramamurti, Congressional Oversight Commission
"We adjusted the program--the Main Street Lending Program--and made that program available to what we refer to as mid-cap size companies," said Brouillette.
The energy secretary went on to say that President Donald Trump personally directed him and Mnuchin "to evaluate the programs that were passed by the Congress and ensure that there is access for these energy industries to those programs."
"And that's what we've done," said Brouillette.
Watch:
Following Brouilette's remarks, Ramamurti said the Congressional Oversight Commission "should investigate these changes carefully."
"These Fed facilities are not supposed to direct aid specifically to certain companies or industries--particularly not ones that were in dire financial shape even before the coronavirus crisis began," said Ramamurti.
On April 30, the Fed announced an expansion of its Main Street Lending Program to include companies with as many as 15,000 employees or up to $5 billion in annual revenue.
While Fed officials insisted that the program was not adjusted to benefit any particular industry, Ramamurti noted at the time that the changes "mirror the top requests of the oil and gas industry."
"Here's one change the Treasury and the Fed didn't make: they didn't create any meaningful requirement that companies that get taxpayer-backed loans keep workers on payroll," said Ramamurti. "They also didn't add any requirement that those companies try to rehire workers they've already fired."
Ramamurti laid out how the Fed's changes resembled fossil fuel industry demands:
\u201cFirst change: The Fed originally said companies couldn\u2019t use generous taxpayer-backed loans to refinance existing debt. Today, it said companies could.\n\nHere\u2019s an oil and gas lobbying group asking for that exact change two weeks ago. 2/\n\nhttps://t.co/7z2M1QtGCq\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
\u201cSecond change: The Fed originally said the maximum loan was $150 million. Today, it said it would be $200 million.\n\nHere\u2019s the Energy Secretary saying two weeks ago the loans needed to be at least $200 million to help oil and gas companies. 3/\n\nhttps://t.co/CsjpLMGIVx\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
\u201cThird change: The Fed originally set a strict limit on how indebted a company could be to get a loan. Today, it dramatically weakened that limit. \n\nHere\u2019s a letter describing the original limit as a problem for oil and gas companies. 4/\n\nhttps://t.co/MUuI2dKSqb\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
In a statement after the Fed expanded its Main Street Lending Program last month, Western Values Project director Jayson O'Neill said "big oil and their lobby arm [the Independent Petroleum Association of America] are laughing all the way to the bank."
"Once again the Trump administration showed its true colors by serving up another taxpayer-funded bailout to its billionaire big oil corporate pals while ignoring needed help for American families and small businesses," said O'Neill.
According to a report released Tuesday by Friends of the Earth (FOE), the oil and gas industry has been heavily lobbying Congress in an effort to benefit from coronavirus relief funds.
"Big Oil is wasting no time exploiting the coronavirus for profit," said Lukas Ross, senior policy analyst at FOE. "Polluters fought hard for kickbacks in the first coronavirus stimulus package and they are undoubtedly up to it again. As Trump and the GOP continue their crusade to prop up Big Oil, we must stop the fossil fuel industry from snatching more taxpayer money."
A watchdog on the congressional committee tasked with overseeing the Trump administration's handling of Covid-19 bailout funds demanded an investigation Tuesday after Energy Secretary Dan Brouillette openly admitted in a television appearance that the White House pressed the Federal Reserve to alter one of its lending programs for the benefit of fossil fuel companies.
"We now know that Trump administration officials 'worked very closely with the Federal Reserve' to make these changes so taxpayer-backed loans would be available to oil and gas firms," tweeted Bharat Ramamurti, a member of the Congressional Oversight Commission. "How do we know? The Energy Secretary went on TV and said so."
In an interview on Bloomberg TV Tuesday, Brouillette, a former corporate lobbyist, said Treasury Secretary Steve Mnuchin "worked very closely with the Federal Reserve" to open one of the central bank's lending programs to the oil and gas industry.
"Here's one change the Treasury and the Fed didn't make: they didn't create any meaningful requirement that companies that get taxpayer-backed loans keep workers on payroll."
--Bharat Ramamurti, Congressional Oversight Commission
"We adjusted the program--the Main Street Lending Program--and made that program available to what we refer to as mid-cap size companies," said Brouillette.
The energy secretary went on to say that President Donald Trump personally directed him and Mnuchin "to evaluate the programs that were passed by the Congress and ensure that there is access for these energy industries to those programs."
"And that's what we've done," said Brouillette.
Watch:
Following Brouilette's remarks, Ramamurti said the Congressional Oversight Commission "should investigate these changes carefully."
"These Fed facilities are not supposed to direct aid specifically to certain companies or industries--particularly not ones that were in dire financial shape even before the coronavirus crisis began," said Ramamurti.
On April 30, the Fed announced an expansion of its Main Street Lending Program to include companies with as many as 15,000 employees or up to $5 billion in annual revenue.
While Fed officials insisted that the program was not adjusted to benefit any particular industry, Ramamurti noted at the time that the changes "mirror the top requests of the oil and gas industry."
"Here's one change the Treasury and the Fed didn't make: they didn't create any meaningful requirement that companies that get taxpayer-backed loans keep workers on payroll," said Ramamurti. "They also didn't add any requirement that those companies try to rehire workers they've already fired."
Ramamurti laid out how the Fed's changes resembled fossil fuel industry demands:
\u201cFirst change: The Fed originally said companies couldn\u2019t use generous taxpayer-backed loans to refinance existing debt. Today, it said companies could.\n\nHere\u2019s an oil and gas lobbying group asking for that exact change two weeks ago. 2/\n\nhttps://t.co/7z2M1QtGCq\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
\u201cSecond change: The Fed originally said the maximum loan was $150 million. Today, it said it would be $200 million.\n\nHere\u2019s the Energy Secretary saying two weeks ago the loans needed to be at least $200 million to help oil and gas companies. 3/\n\nhttps://t.co/CsjpLMGIVx\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
\u201cThird change: The Fed originally set a strict limit on how indebted a company could be to get a loan. Today, it dramatically weakened that limit. \n\nHere\u2019s a letter describing the original limit as a problem for oil and gas companies. 4/\n\nhttps://t.co/MUuI2dKSqb\u201d— Bharat Ramamurti (@Bharat Ramamurti) 1588262752
In a statement after the Fed expanded its Main Street Lending Program last month, Western Values Project director Jayson O'Neill said "big oil and their lobby arm [the Independent Petroleum Association of America] are laughing all the way to the bank."
"Once again the Trump administration showed its true colors by serving up another taxpayer-funded bailout to its billionaire big oil corporate pals while ignoring needed help for American families and small businesses," said O'Neill.
According to a report released Tuesday by Friends of the Earth (FOE), the oil and gas industry has been heavily lobbying Congress in an effort to benefit from coronavirus relief funds.
"Big Oil is wasting no time exploiting the coronavirus for profit," said Lukas Ross, senior policy analyst at FOE. "Polluters fought hard for kickbacks in the first coronavirus stimulus package and they are undoubtedly up to it again. As Trump and the GOP continue their crusade to prop up Big Oil, we must stop the fossil fuel industry from snatching more taxpayer money."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.