‘DOGE’ Senator Seeks to Ensure Feds Can Continue Pursuing COVID Fraudsters, Debtors, As IG Raises Alarm
FIRST ON FOX: A senior “DOGE” senator said that the government watchdog warned her about the “alarming” rate of non-payment of “PPP” loans from the COVID era, and now she wants to hold the fraudsters accountable.
In the letter Sen. Joni ErnstR-Iowa, Inspector General for Pandemic Recovery (SIGPR) Brian Miller wrote that the loan program’s funding reported losses of $1.27 billion as of November 2024 and have snowballed since the initial payments to borrowers began coming in July in 2023
“Without SIGPR to protect taxpayers, there will be no one on duty to allow this crisis to continue,” Miller wrote.
“Equally troubling is the alarming default rate of borrowers who do not even pay interest on Main Street Lending Program (MSLP) and Direct Loan Program loans.”
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Page from the PPP loan application for financial support due to the outbreak of COVID-19 in New York. May 7, 2020. (REUTERS/Lucas Jackson)
The inspector general added that their office was “laying off staff” and was going through the statutory procedures for an agency to be closed.
At least 130 potential defendants have been identified to be questioned, and without adequate resources, this may never happen.
Ernst warned that dishonest loan seekers could get away with a $200 billion fraud Relief for COVID-19 if her bill doesn’t pass.
Sen. Joni Ernst, R-Iowa, has drafted a bill that would provide additional funding to hold accountable fraudsters dealing with the coronavirus pandemic. (Reuters/Bonnie Cash)
“Fraudsters have taken advantage of small business pain during COVID to defraud government programs designed to help hardworking Americans,” Ernst said Wednesday.
“While we have $36 trillion in debt, we especially cannot afford to have more than $200 billion floating around, especially in the hands of fraudsters. My Republican colleagues and I are making sure that every resource is available in this fight to get taxpayer money back and call hold these criminals accountable.”
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When the Small Business Administration started the Restaurant Revitalization Fund and Payroll Protection Program (PPP) loans, they were on a first-come, first-served basis.
Critics at the time argued that many qualified businesses and entities were turned away as a result, and there were reports that gang members and drug dealers were able to access resources instead.
One alleged scammer used a photo of a Barbie doll as his ID on an SBA loan application, while another grabbed $8 million that could have gone to struggling restaurants — especially in states with crippling closing policies.
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In response, Ernst drafted the Complete COVID Collections Act, Fox News Digital has learned.
The bill would extend SIGPR’s authorization through 2030 and expand its authority to other SBA programs related to COVID. As of Wednesday, SIGPR has only been approved in September.
The proposal also directs the Treasury Department to enforce the collection of loans under $100,000 as strictly as the alleged high-dollar scams and delinquent borrowers.
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It also brings i Ministry of Justicerequiring the law enforcement agency to provide regular reports to Congress on activities related to pandemic-focused programs, including prosecutions, recoveries, and DOJ referrals from other entities.
By Wednesday afternoon, Ernst’s bill had been co-sponsored by four other Republicans: Sens. Marsha Blackburn of Tennessee, Todd Young of Indiana, James Lankford of Oklahoma and John Curtis of Utah — who had just sat after Mitt Romney’s departure.
