The Biden administration announced a series of measures Thursday to track down and punish fraudsters who scammed billions of taxpayer dollars that were supposed to provide relief to Americans during the COVID-19 pandemic.
Biden is pledging $1.6 billion to bolster law enforcement manpower and new programs that will be used to prosecute scammers, prevent fraud, and provide assistance to victims of identity theft.
“We want to not only capture them and get their funds, we want to send a signal to them that you can run, but you cannot hide,” said Gene Sperling, a Biden senior adviser who is overseeing the implementation of the COVID-relief plan.
THE LATEST
• The administration’s plans call for creating 10 Department of Justice “strike forces” that will include U.S. attorneys and other law enforcement officials to investigate COVID-relief fraud and help recover stolen tax dollars. The teams will target criminal syndicates and other major fraudsters. Three strike forces already are in place and have recovered millions of dollars in stolen relief funds, officials said.
• The administration also will propose increasing the statute of limitations to 10 years for fraud involving the pandemic Unemployment Insurance program, which has been hit especially hard by scammers.
• Some $300 million will be distributed to inspectors general at the Small Business Administration, the Department of Labor and the staff of the Pandemic Response Accountability Committee, a government watchdog over pandemic spending. The money would be used to hire investigators and make sure they have the resources needed to pursue specialized cases of pandemic fraud.
• In his proposed budget to be released next week, Biden will offer a package of legislative reforms to prevent, detect and recover payments made improperly through the Unemployment Insurance program.
• Federal grants would be made to states to help modernize their information technology systems to enable them to respond more quickly to fraud, decrease erroneous payments and provide more efficient claims processing.
• New initiatives also would be put in place to identify victims of identity theft, including an early warning system to stop potentially fraudulent transactions before they occur and a one-stop shop to report identity crimes.
WHY IT MATTERS
The federal government distributed more than $5 trillion in pandemic relief under programs approved by Biden and former President Donald Trump. The money was distributed quickly, leading to an increase in fraud and other improper payments, such as those that shouldn’t have been made or were made in the wrong amount.
The Government Accountability Office reported last month that the extent of fraud in COVID-relief programs is not yet known but that the Unemployment Insurance program alone was believed to have made more than $60 billion in fraudulent payments.
From March 2020 to last January, at least 1,044 people pleaded guilty or were convicted of defrauding COVID relief programs, the GAO report said. Federal charges were pending against another 609 individuals or entities for attempting to defraud COVID-relief programs.
Also, the federal government gave $5.4 billion in COVID aid to small businesses with “questionable” Social Security numbers, the Pandemic Response Accountability Committee reported in January. The watchdog identified nearly 70,000 questionable Social Security numbers used to obtain pandemic aid from two programs run by the Small Business Administration.
WHAT'S NEXT?
The Republican-led House Oversight and Accountability Committee has opened an investigation into fraud in COVID-relief programs. The committee held its first hearing on the subject last month.
Sperling, however, said the administration’s anti-fraud package isn’t a direct response to the GOP investigations. Most of the proposals were being prepared before last November’s election, he said.
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U.S. Rep. Ro Khanna on Wednesday urged the Biden administration to cut off sales of weaponry and crucial plane parts to Saudi Arabia as the Organization of the Petroleum Exporting Countries—a cartel led by the Saudis—agreed to slash oil production in a bid to prop up falling prices, a move that could inflict more pain on American consumers.
"President Biden should make it clear that we will stop supplying the Saudis with weapons and air parts if they fleece the American people and strengthen [Russian President Vladimir] Putin by making drastic production cuts," Khanna (D-Calif.) told The Washington Post in an interview as OPEC members met in Vienna.
"They need us far more than we need them," Khanna added.
The Biden White House launched a pressure campaign earlier this week in a last-ditch bid to stop OPEC from cutting supply, characterizing such a move as a "hostile act."
But the administration's efforts failed. On Wednesday, OPEC members agreed to slash their combined production by two million barrels a day, the largest supply cut since the onset of the coronavirus pandemic in 2020.
Saudi Arabia is the second-largest oil producer in the world behind the U.S., and the Biden administration has sought cooperation from the kingdom's murderous leaders as Russia's war on Ukraine continues to rattle global energy markets, elevating prices for consumers. While not a formal OPEC member, Russia—the world's third-largest oil producer—often works with the international cartel.
In July, U.S. President Joe Biden held a widely condemned meeting with Saudi Crown Prince Mohammed bin Salman to discuss the global oil supply, among other issues.
The White House has warned an OPEC production cut could reverse the large and consistent declines in U.S. gas prices over the past several months, just in time for the pivotal midterm elections. Expectations of a production cut have already driven oil prices up significantly in recent days.
"We've been clear that energy supply should meet demand to support economic growth and lower prices for consumers around the world and we will continue to talk with our partners about that," White House National Security Council spokesperson Adrienne Watson said in a statement Tuesday.
Khanna, a progressive seen by some as a future presidential candidate, is a longtime critic of the Saudi regime—particularly its devastating assault on Yemen. He has been pushing the White House in recent days to respond forcefully to any OPEC production cut.
"It's outrageous. The Saudis need to be dealt with harshly," Khanna told CNN in an interview earlier this week. "They are a third-rate power. We are the most powerful country in the world. I don't know why we kowtow to them."
"They are not our allies," the California Democrat added. "They are hurting the American people. And we need to be tough with them. The President needs to make it clear we will cut off their supply. We could ground their air force in a day."
Sen. Bernie Sanders on Wednesday called for an end to U.S. military aid to Saudi Arabia after the kingdom and other major oil-producing nations agreed to slash output by two million barrels a day, a move that could significantly drive up gas prices worldwide as a global recession looms.
In a social media post, Sanders (I-Vt.) denounced the Saudi-led OPEC cartel over its "blatant attempt to increase gas prices at the pump," which he said "cannot stand."
"We must end OPEC's illegal price-fixing cartel, eliminate military assistance to Saudi Arabia, and move aggressively to renewable energy," the Senator added.
Sanders was one of several members of the U.S. Democratic caucus who responded with outrage to OPEC and Russia's decision, which is set to take effect in November as the midterm elections kick off.
Sen. Ed Markey (D-Mass.) announced Wednesday that he will be reintroducing legislation instructing U.S. officials to "initiate dispute proceedings" against OPEC members at the World Trade Organization for violating the body's price-manipulation rules.
"As we build our clean energy future, we must stand up to the oil-soaked global cartel that seeks to abuse its power to raise prices and boost their profits," Markey said in a statement. "Today's OPEC announcement is a reminder that as long as the United States is dependent on foreign oil and on domestic oil that is priced on a global market, the supply and cost of the energy Americans use to operate our cars, heat our homes, and power our economy is reliant on decisions made by and for hostile fossil-fueled regimes."
"We must hold OPEC and its allies accountable for colluding to hike energy prices on working families," Markey added, "and we must accelerate our transition to clean energy to free ourselves from their profiteering, colluding grip once and for all."
Reps. Tom Malinowski (D-N.J.), Sean Casten (D-Ill.), and Susan Wild (D-Pa.), meanwhile, unveiled legislation that would require the removal of U.S. troops and missile defense systems from Saudi Arabia and the United Arab Emirates (UAE), another OPEC member.
"Saudi Arabia and the UAE's drastic cut in oil production, despite President Biden's overtures to both countries in recent months, is a hostile act against the United States and a clear signal that they have chosen to side with Russia in its war against Ukraine," the House Democrats said in a joint statement Wednesday.
"Both countries have long relied on an American military presence in the Gulf to protect their security and oil fields," the trio added. "We see no reason why American troops and contractors should continue to provide this service to countries that are actively working against us."
The Biden White House has thus far indicated that it is considering a number of policy responses to "reduce OPEC's control over energy prices"—signaling a possible revival of NOPEC legislation—but the administration hasn't specifically said it would target U.S. military assistance to the Saudis.
According to a recent study by the Government Accountability Office, the Pentagon delivered at least $54.6 billion of military aid to Saudi Arabia and the UAE between fiscal years 2015 and 2021, support that included missiles, helicopters, and bombs.
The U.S. has also spent hundreds of millions of dollars in recent years refueling Saudi and UAE jets as they attacked Yemen, sparking a humanitarian catastrophe that continues in the present.
Despite the President's campaign pledge to make the kingdom a "pariah" over its assassination of Jamal Khashoggi, the Biden administration has continued to approve massive weapons sales to the Saudis, including a multibillion-dollar sale of missiles in August. A month earlier, Reuters reported that the Biden administration was considering lifting its ban on "offensive" weapons sales to the Saudis.
Rep. Ro Khanna (D-Calif.) has been vocally pressing the Biden administration to halt U.S. military support for Saudi Arabia in response to OPEC's coming production cut, blasting the petrostate as a "third-rate power" that is "hurting the American people."
On Wednesday, Khanna co-authored an op-ed calling for an end to "missile and weapons system sales Saudi so desperately needs."
"By siding with Russia in hiking oil prices and sabotaging our economy," Khanna and two others wrote, "the Saudis have really outfoxed themselves this time—it was a time for choosing, and they picked the wrong side."
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GAO Publishes Report on Technologies for PFAS Assessment, Detection, and Treatment
GAO Publishes Report on Technologies for PFAS Assessment, Detection, and Treatment
The U.S. Government Accountability Office (GAO) published a report on July 28, 2022, entitled Persistent Chemicals: Technologies for PFAS Assessment, Detection, and Treatment. GAO was asked to conduct a technology assessment on per- and polyfluoroalkyl substances (PFAS) assessment, detection, and treatment. The report examines the technologies for more efficient assessments of the adverse health…
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