McCarthy-Biden Debt Deal Eliminates Unspent COVID Funds, Blocks IRS Expansion and Reforms Permitting

The debt limit deal struck late Saturday between House Speaker Kevin McCarthy and President Joe Biden rolls back some of Washington’s massive spending while delivering other conservative priorities like blocking new taxes and requiring some welfare recipients to work, according to a summary obtained by Just the News.

McCarthy described the deal as an “agreement in principle,” and it rolls back domestic spending to fiscal year 2022 levels while limiting “top line federal spending to 1% growth for the next 6 years.”

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Documents: Concert Promoter Giant Live Nation’s Subsidiaries Weren’t Eligible for Millions of Dollars in COVID Grants

Subsidiaries of behemoth concert promoter Live Nation Entertainment received $20 million in federal COVID grants that they were not entitled to, according to a Wisconsin Daily Star review of documents.

Madison-based Frank Productions Concerts, LLC and National Shows 2, LLC of Delaware, each received $10 million from the Small Business Administration’s Shuttered Venues Operator Grant (SVOG) program — funding that was clearly marked for independent operators, not subsidiaries of publicly traded companies.

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Detroit Gives $6 Million in Down Payments to Low-Income Residents

The city of Detroit will allocate $6 million to give low-income Detroiters who don’t own a home a down payment of up to $25,000.

The Detroit Down Payment Assistance Program provides qualifying Detroit households grants up to $25,000 for a down payment. Funding also can be used for other home purchase-related expenses, including prepaids (such as escrow deposits for property taxes), interest rate buy-downs, closing costs and reduction in principal.

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Virginia’s Temporary COVID-19 Benefits Assistance Programs Ending Soon

Temporary benefits enacted during the COVID-19 pandemic attached to medical coverage and food assistance programs are set to end soon due to recent federal action, raising concerns from advocates about the impact the loss of additional support will have on Virginians. 

The recent passing of the Consolidated Appropriations Act of 2023 and the approaching May 11 end date for the federal COVID-19 public health emergency means the expiration of temporary benefits associated with several Virginia assistance programs, according to the Virginia Department of Social Services and the Virginia Department of Medical Assistance Services. 

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More than a Half-Million Dollars Set for ‘Equity Consulting,’ as well as Vaping and Motion Detectors Removed from Michigan Schools’ COVID Spending

Nineteen vape detectors, $550,000 in equity coaching, motion sensors, and metal detectors are some items deleted from Michigan schools’ initial COVID spending plans.

The Center Square discovered the removed spending by filing more than 100 records requests to school districts statewide in an attempt to learn how schools plan to spend more than $6 billion in recovery pandemic funds. 

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Flint Buick City Site Redeveloper Seeks $15 Million from Taxpayers

Taxpayers might foot $15 million for a private-public deal to redevelop the former Buick City brownfield site in Flint. The partnership hopes to create 3,000 jobs.

Real estate investment company Ashley Capital is contracted to purchase the 350-acre former Buick City site from Revitalizing Auto Communities Environmental Response Trust and plans to develop an industrial park.

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Detroit to Spend COVID Relief Luring Back Long-Term Unemployed

The city of Detroit plans to spend federal COVID relief to pay groups to identify qualified individuals to enroll in training and return them to the workforce.

Applications are now open through early November for the new “In Detroit Organizations” program to identify long-term unemployed residents and enroll them in a JumpStart education or training program. The Center Square has asked for the total program cost but has not yet received an answer.

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Arizona School District Gave Out $68 Million in Bonuses Using COVID-19 Emergency Money

Tucson Unified School District gave employees $68 million in retention bonuses and vaccine stipends, according to Superintendent Gabriel Trujillo in a document given to the school board.

Trujillo made the statement in a Sept. 13 report, which stated, “Over $68 million invested in our employees through the payment of retention and vaccine stipends.”

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Commentary: The Fed’s Interest Rate Hikes Have only Destroyed $398 Billion of the $6 Trillion It Printed

“Our expectation has been we would begin to see inflation come down, largely because of supply side healing.  We haven’t. We have seen some supply side healing but inflation has not really come down.”

That was Federal Reserve Chairman Jerome Powell on Sept. 21, speaking to reporters following the central bank’s meeting where the Federal Funds Rate was once again increased 0.75 percent to its current range of 3 percent to 3.25 percent in a bid to combat sticky 8.3 percent consumer inflation the past year.

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Some Michigan Schools Keep Mum on COVID Relief Spending

Theoretically, taxpayers should be able to see how Michigan schools are spending $5.7 billion of taxpayer money to recover from COVID-19-related learning loss.

But an investigation by The Center Square through more than 80 records requests to schools statewide shows how difficult it can be to obtain itemized COVID spending records. Many schools never responded to an initial Freedom of Information Act request.

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Milwaukee ARPA Commission Turns Down Request for Repairs to Landmark Mitchell Park Domes

There is, apparently, a limit to what Milwaukee County considers coronavirus-related relief.

Milwaukee County’s American Rescue Plan Act Task Force last week unanimously rejected a proposal to spend $19 million of ARPA dollars to rehabilitate the Mitchell Park Domes.

“This Task Force has spent millions of dollars on initiatives to ensure that houses in suburban Milwaukee aren’t falling into disrepair, potentially rushing foreclosures.

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Tennessee Businesses Received $370M in Federal Shuttered Venue Grants for COVID-19 Relief

Tennessee businesses were granted more than $370 million in federal Shuttered Venue Operators Grant in a program that closed last month.

The grants attempted to provide funding for entertainment venues, theaters, museums, aquariums, talent representatives and similar businesses that were forced to shut down — partially or completely — during the COVID-19 pandemic.

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Ducey Appeals Ruling Against Arizona’s Limiting COVID Relief to Open Schools

Gov. Doug Ducey is appealing a federal judge’s decision blocking his decision to withhold federal COVID-19 relief to unopened schools. 

While Arizona had lifted all mask mandates in April 2021, some schools still maintained a mask requirement.

To incentivize the removal of classroom mask policies, Ducey restricted a $163 million aid package to maskless, opened schools. The aid amounts to $1,080 per student. The state funding came from the $2 billion in federal stimulus money from the American Recovery Plan Act.

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Gov. Walz Offers Minnesotans $1,000 Checks to Spend Half of $9.2 Billion Surplus

Gov. Tim Walz suggested sending half of the state’s $9.2 billion surplus back to taxpayers in a 15-minute special session.

Walz last weekend proposed sending individuals $1,000, and married couples $2,000.

Only Walz can call a special session, but he hasn’t after a GOP and DFL broad deal for $4 billion in tax relief and $4 billion in savings disintegrated in May as the regular session concluded.

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State Audit Finds Just $314,000 Considered to Be ‘Questioned Spending’ in $21 Billion of Federal Money

State auditors say almost all of the nearly $21 billion in federal money that came to Wisconsin last year was properly spent.

The Legislative Audit Bureau released a report into state spending of federal dollars from the fiscal year 2020-21 state budget.

“In FY 2020-21, state agencies administered $20.8 billion in federal financial assistance, including $6.6 billion that was related to the public health emergency,” the auditors wrote. “Our audit focused on 24 federal programs that accounted for 82.3 percent of the federal financial assistance administered by state agencies.”

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Georgia Doling Out More Than $11 Million in COVID Relief to Help Teachers

The Georgia Department of Education is dishing out more than $11 million in federal COVID-19 relief to help more than 14,600 Georgia teachers.

The State Board of Education approved $6.8 million in Expanding Opportunities for Teachers Grants for 19 school districts, higher education institutions and Regional Educational Service Agencies (RESAs). Recipients can use the money to pay for tuition, fees and exam costs for Georgia public school teachers enrolled in approved Teacher and Teacher Leader Endorsement programs.

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Pennsylvania Senator Toomey Pushes for Accounting of COVID Spending

While President Joe Biden proposed $22.5 billion in coronavirus-related spending this week, Pennsylvania Senator Pat Toomey (R) urged clarification of how the government has spent almost $6 trillion in earlier COVID relief.

Toomey joined 35 Senate colleagues in writing to Biden asking for a detailed explication of the disbursements made over the last two years which, the authors noted, amounted to the largest allotment of taxpayer money for one concern in American history.

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Commentary: $800 Billion Stimulus Program Failed Terribly and Mostly Benefited the Wealthy, MIT Economist Finds

Close up of federal check

The federal government has spent an astounding $42,000 per federal taxpayer on so-called “stimulus” efforts since the pandemic began. Where did all that money go? Well, as it turns out, one of the biggest stimulus programs, the Paycheck Protection Program, failed miserably.

At least, that’s the finding of a new study from MIT economist David Autor and nine coauthors. They examined the $800 billion Paycheck Protection Program, which gave “loans,” most of which won’t have to be paid back, to businesses. It was created by Republicans and Democrats in Congress alike in hopes of helping businesses preserve their employees’ jobs for the duration of the COVID-19 crisis. 

The study tracks the money to see where it ended up and what it achieved. The results… aren’t pretty. 

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Metro Asks for $1.9 Million to Clean and Manage Parks

Nashville’s Metro Parks asked the Metro Council for $1.9 million to clean and manage some of the cities parks. Metro Parks requested the money in October during the COVID-19 Financial Oversight Committee.

From the $1.9 million, about $850,000 will be put towards renovating Brookmeade Park. Brookmeade has become a permanent campsite to many in the homeless community after Nashville “evicted” people who were living under the Jefferson Bridge.

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Tennessee Officials to Allocate COVID-Relief Funds to Increase Internet Access in Underserved Regions

Crystal Ivey, broadband director at Tennessee’s Department of Economic and Community Development (ECD), said Wednesday that $500 million in taxpayer money bestowed upon Tennessee in the latest round of federal COVID-19 relief will go toward broadband expansion.

ECD officials and Governor Bill Lee (R) have stressed the heightened importance of telecommuting, e-commerce, telemedicine and distance learning after the pandemic hit.

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Treasury Department Has Distributed Fraction of Emergency Rent Assistance with Just Days Until Evictions Begin

US Treasury Dept

The Department of the Treasury has awarded a small fraction of the tens of billions of dollars Congress appropriated for pandemic rental assistance since January.

The federal government has expended less than $3 billion of the $46.6 billion in funds given to the Emergency Rental Assistance (ERA) program, the Treasury Department announced on Wednesday. The U.S. doled out $1.49 billion from January through May and $1.5 billion in June to low-income renters nationwide, according to a spreadsheet published by the Treasury.

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CDC Awarded Davidson and Shelby Counties Nearly $12 Million to Address COVID Health Disparities for Minorities

CDC

The CDC awarded nearly $12 million collectively to Davidson and Shelby counties to address COVID-related health disparities in racial and ethnic minorities. Overall, the Tennessee Department of Health (TDH) was awarded nearly $39 million in total this past week, with a rural carveout totaling over $8.3 million. The CDC says this funding to a total of 107 recipients is part of a larger goal to “advance health equity.”

The Metro Public Health Department of Nashville and Davidson County received over $4.9 million in these funds, while Shelby County Health Department received nearly $6.6 million. The Tennessee Star inquired with the CDC how the funds can be used specifically to address COVID-related health disparities among racial or ethnic minorities, and what metrics they would use to measure progress within the awarded states and localities. The CDC didn’t respond by press time.

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Tennessee Proposes Giving Millions More in COVID Relief to Businesses

Tennessee is considering giving over $40 million in additional COVID relief funds to businesses, as the state’s economy continues to recover.

The Financial Accountability Stimulus Group proposed utilizing the funds from the federal government, enabled by this year’s COVID-19 relief package. The goal of the funds is to increase the size of payouts businesses can receive for their losses throughout the pandemic.

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Alabama Becomes Latest State to End $300 Unemployment Bonus

Close up of federal check

Alabama will soon cease participating in the federal government’s unemployment insurance program that grants out-of-work Americans an extra $300 per week, the state’s governor said.

Republican Gov. Kay Ivey announced that the state would withdraw from the coronavirus relief program by June 19, 2021, arguing that the $300 in additional weekly payments was incentivizing people not to look for jobs. She suggested that the labor shortages reported in states across the country have been caused by the unemployment boost.

“As Alabama’s economy continues its recovery, we are hearing from more and more business owners and employers that it is increasingly difficult to find workers to fill available jobs, even though job openings are abundant,” Ivey said in a statement.

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Billions of Coronavirus Stimulus Money Still Hasn’t Been Spent, Republican Senators Say in Letter to Biden

US Capitol

A group of ten Republican senators outlined a less expensive coronavirus relief compromise bill and said much of the past stimulus passed during the pandemic hasn’t been spent yet.

The proposed stimulus framework builds on prior legislation that passed with bipartisan support, the 10 senators wrote in the letter Sunday. The group, which included Sens. Mitt Romney, Thom Tillis, Susan Collins and Lisa Murkowski, also requested a meeting with President Joe Biden to discuss the bill.

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Commentary: The Constitutional Politics of President Trump’s Impoundment Move

To understand President Trump’s signing of the latest so-called COVID-19 “stimulus” bill after days of veto threats, we need to understand the critical constitutional history of the Watergate era. 

Citing the Impoundment Control Act of 1974, Trump declared, “I will sign the Omnibus and COVID package with a strong message that makes clear to Congress that wasteful items need to be removed. I will send back to Congress a redlined version, item by item, accompanied by the formal rescission request to Congress insisting that those funds be removed from the bill.” 

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Rep. Ilhan Omar, Sen. Bernie Sanders Push Bill Taxing Billionaires 60 Percent to Fund One Year of Healthcare for All

Congresswoman Ilhan Omar (D-MN-05) and Senator Bernie Sanders (D-VT) introduced a bill Friday to tax billionaires sixty percent of their pandemic-earned assets. The proposed bill, “Make Billionaires Pay Act,” would use the tax money to cover individual healthcare expenses for one year.

In a tweeted video, Sanders argued billionaires have profited off the coronavirus pandemic while the rest of the country has suffered.

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