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Press Release

Trump, Republicans Cutting Unemployment Benefits by Half While Filling Coffers of Defense Contractor Donors, Corporations, Trump Hotels

By July 28, 2020July 29th, 2020No Comments

$29 Billion for Defense, Compensation for Trump’s Vanity Wall

$1.75 Billion for FBI Headquarters Across the Street From Trump’s Hotel

…But 43% Cut to Unemployment Benefits

In the ten weeks since House Democrats passed the HEROES Act, President Trump and his party have failed to take meaningful steps to address the worsening health and economic crisis that Donald Trump created. Instead, they have cobbled together the HEALS Act, a piece-meal proposal that sacrifices critical aid for Americans in favor of handouts for defense contractors and corporations. 

Senate Republicans Want to Cut Unemployment Benefits for 32 Million Americans by Nearly Half 

According to CNBC, the Republican Coronavirus Relief proposal cuts unemployment benefits by nearly half:

  • “The policy would replace a $600-a-week federal boost, which lapsed over the weekend in all states, with a reduced benefit of $200 a week. The plan would pay the new $200 subsidy through September.” [CNBC, 7/27/20]
  • “In October, that would be replaced by a different formula capping total state and federal jobless benefits at 70% of lost wages.” [CNBC, 7/27/20]
  • “The $200-a-week Republican plan would give the average worker about $521 a week in federal and state unemployment benefits, according to a CNBC analysis of Labor Department data for May. That amounts to a 43% cut in total benefits when compared with the prior, $600-a-week policy, a temporary measure enacted in March under a federal relief law.” [CNBC, 7/27/20]

Impacting five times as many Americans as were receiving unemployment benefits during the Great Recession:

  • “The proposal would impact nearly 32 million Americans currently receiving unemployment benefits — about five times the level of the Great Recession more than a decade ago.”  [CNBC, 7/27/20]

In the best state’s scenario, the Republican bill would cut benefits by 38%, and by 62% in the worst state’s scenario:

  • “The experience would vary significantly between states, which set their own benefit levels. In Oklahoma, for example, benefits would fall 62% to $244 a week under the Republican proposal — the most significant decline for any state relative to prior policy. In Hawaii, the decline would be least severe in Hawaii — a 38% cut to $666 a week.”  [CNBC, 7/27/20]

Meanwhile, the GOP Wants to Protect Corporations, Support Trump’s Financial Interests, and Provide Billions to Defense Contractors Who Are Major Donors

According to Defense News, Senate Republicans want to designate $29 billion in handouts for defense contractors, including:

  • $7 billion for weapons programs
  • $1 billion for Boeing’s maritime patrol plans
  • $1.4 billion for Lockheed Martin jets and aircrafts
  • Neary $700 for army vehicles and helicopters
  • $500 million for radars and missile defense systems

Lockheed Martin and Boeing, both funding recipients in the GOP bill, are each major Republican donors:

  • Boeing Gave Republican Connected Groups $750,000 During The 2018 cycle. “The company’s PAC may give up to $5,000 to a candidate’s campaign committee or use its funds for any other ‘lawful purpose’ — which includes unlimited contributions to super PACs or ‘dark money’ nonprofit groups (that don’t have to disclose their donors) as well. Last cycle, the company’s PAC gave $250,000 to the Mitch McConnell-aligned Senate Leadership Fund; $250,000 to Karl Rove’s dark-money group, One Nation; and $250,000 to the dark-money group American Action Network.” [New York Times, 3/15/19]
  • Lockheed Martin Gave $1 Million To Trump’s inauguration And Employed A Former Trump Campaign Aide As A Top Lobbyist. “Lockheed’s recent attention from the White House is the product of years of relationship-building that started before Trump’s inauguration. The company contributed $1 million to Trump’s inaugural celebrations, one of 63 contractors that did so, according to the Center for Responsive Politics. Lockheed recently hired David Urban, a former Trump campaign aide who has advocated missile strikes against Iran, as a lobbyist.” [Washington Post, 7/23/19]

And the amount of funding designated for defense contractors in Senate Republicans’ “Coronavirus Relief” bill squares with Pentagon funding that President Trump this year redirected to pay for his border wall vanity project:

  • “The GOP Senate’s new $1 trillion coronavirus stimulus bill restores hundreds of millions of dollars in Pentagon spending that the Trump administration redirected to help pay for President Trump’s border wall. Navy planes and ships and Air Force aircraft that the Trump administration canceled earlier this year so the money could go to pay for the wall have reappeared in the GOP bill that was introduced on Monday.” [Washington Post, 7/28/20]
  • “Included in the GOP bill are some of the $3.8 billion in Pentagon programs canceled in a ‘reprogramming’ notice the Trump administration released earlier this year. In one example, the administration sought to zero out a $261 million account for the Navy’s Expeditionary Fast Transport ship. The coronavirus bill puts $260 million back into this program. The ship is built by Austal USA, which is based in Shelby’s home state of Alabama.” [Washington Post, 7/28/20]

Meanwhile, the GOP also wants to offer liability protections for schools and corporations, as Trump pushes schools and business to reopen against the advice of experts:

  • “Republicans have repeatedly said that one of their chief goals is ensuring that businesses and other entities are protected from coronavirus-related lawsuits that emerge from customers and employees… Liability protections would shield schools, companies and health care providers from lawsuits related to coronavirus exposure and treatment between December 2019 and October 2024.” [Vox, 7/27/20]

And Republicans want to allocate $1.75 Billion to rebuild the FBI Headquarters downtown… Across the street from Trump’s hotel:

 

  • “[Speaker Pelosi and Minority Leader Schumer] on Monday accused President Trump of self-dealing in pressing Senate Republicans to include in their coronavirus relief proposal $1.75 billion to rebuild the FBI headquarters on Pennsylvania Avenue in downtown Washington. Democrats suspect Trump is pressing for the money to rebuild the FBI headquarters in downtown D.C. so that it doesn’t move out from its space on 9th Street and Pennsylvania Avenue and leave open a prime piece of real estate that could be occupied by a new hotel that would pose serious competition to the Trump International Hotel across the street.” [The Hill, 7/27/20]

 

As Republicans offer a 100% tax cut on business meals for corporations, rather than just feeding Americans:

 

  • “The legislation offers a 100 percent deduction on business meals through the end of 2020. Trump and White House economic adviser Larry Kudlow have pushed the measure as a way to encourage people to support hard-hit restaurants. Experts have pointed out that few businesses are paying for their employees to eat out during the pandemic.” [Washington Post, 7/27/20]