Good Jobs First head describes the misuse of PPP and CARES Act funding

Good Jobs First Executive Director Greg LeRoy spoke about a new study put out by his organization and more on the Oct. 5 episode of America’s Work Force Union Podcast.

COVID-19 Stimulus Watch

The COVID-19 pandemic has undoubtedly affected businesses more than we could have ever imagined.

With businesses hurting badly, the government stepped in and wrote stimulus legislation in order to offer some financial relief to help the chances of survival for many businesses. This legislation was known as the Paycheck Protection Program, as well as other provisions of the CARES Act. While this is a great idea and proved helpful to some businesses, LeRoy said there were still businesses that were trying to take advantage of the stimulus package.

Taking advantage of COVID-19 relief

Good Jobs First keeps track of violations committed by corporations who have received bailouts during the COVID-19 pandemic.

In their new study, The Corporate Culprits Receiving COVID Bailouts, a significant number of CARES Act recipients have been penalized for serious corporate misconduct. The misconduct ranges from wage theft and workplace safety violations to healthcare fraud and price-fixing.

LeRoy said it was as if there was no screening done, nor were there strict enough eligibility requirements for receiving the relief money, and corporations guilty of misconduct or mismanaging monies were still receiving aid.

Additionally, he spoke about writing new relief legislation during the pandemic. He said that when it comes to eligible corporations, the Pandemic Response Accountability Committee has oversight of the relief money.

Lastly, LeRoy called attention to General Motors receiving tax money to stay in operation at the Lordstown plant in Ohio and how it still ended up closing its doors for good. He said that after this occurred, Ohio ordered GM to repay some of the tax money in state tax credit.


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