Dems Launch Inquiry Into Administration’s Small-Business Aid Distribution After Watchdogs Sound Alarm

The New York Times: Congress Steps Up Pressure As Trump Administration Evades Bailout Oversight
House Democrats opened an investigation on Monday into the distribution of more than $500 billion in small-business loans under a pandemic relief program, escalating a clash with the Trump administration as it resists oversight of trillions of dollars in coronavirus assistance funds. The announcement from the seven Democrats on a committee created to scrutinize how the administration is spending pandemic relief money came as Steven Mnuchin, the Treasury secretary, abruptly pivoted under pressure from lawmakers and said he would work to disclose more about where government-backed money was going through the lending initiative, the Paycheck Protection Program. (Cochrane and Rappeport, 6/15)

The Associated Press: House Demands Coronavirus Loan Info From Treasury, Banks
A House subcommittee investigating billions of dollars in coronavirus aid is demanding that the Trump administration and some of the nation’s largest banks turn over detailed information about companies that applied for and received federal loans intended for small businesses. The requests Monday came after Treasury Secretary Steven Mnuchin told Congress last week that the names of loan recipients and the amounts disbursed as part of the $600 billion-plus Paycheck Protection Program are “proprietary information” and do not have to be made public. Democrats say there is nothing proprietary or confidential about businesses receiving millions of taxpayer dollars. (Jalonick and Daly, 6/15)

Politico: Democrats Demand Details From Banks, Treasury On Small Business Bailout
Clyburn and his colleagues say evidence of a “two-tiered” process, through which banks gave priority to wealthier customers, requires a more transparent understanding of how the government distributed hundreds of billions of taxpayer dollars. Under the PPP, banks have issued nearly $512 billion in loans. “We have significant concerns that the two-tiered system that some banks reportedly developed for wealthy clients may have diverted PPP funds intended for vulnerable small business owners in underserved and rural markets,” they wrote in letters to JPMorgan, Citibank, Bank of America, Wells Fargo and other large financial institutions. (Warmbrodt, Cheney and Woodruff Swan, 6/15)

The Washington Post: Inspectors General Warn That Trump Administration Is Blocking Scrutiny Of Coronavirus Rescue Programs
In a letter to four congressional committee chairs Thursday, two officials in charge of a new government watchdog entity revealed that the Trump administration had issued legal rulings curtailing independent oversight of Cares Act funding. The letter surfaced amid growing bipartisan frustration over the administration’s decision not to disclose how it is spending hundreds of billions in aid for businesses. On Monday, Treasury Secretary Steven Mnuchin appeared to bow to that pressure, saying he would work with Congress on new oversight measures. But some Democrats have said the White House is not taking disclosure requests seriously enough. (Hamburger, Stein, O'Connell and Gregg, 6/15)

Politico: Inspectors General Ask Congress For Help In Monitoring Coronavirus Relief Payments
The legal opinions are the latest squeeze put on inspectors general by the Trump administration, which has gradually chipped away at the ability of internal watchdogs to monitor aspects of the administration’s conduct independently. The letter from the inspectors general, first revealed by The Washington Post, was signed by the Justice Department inspector general, Michael Horowitz, who leads a panel of inspectors general charged with coronavirus-related oversight known as the Pandemic Response Accountability Committee, and its executive director, Robert Westbrooks. “We are writing to bring to your attention an issue that could impact the ability of the Pandemic Response Accountability Committee (PRAC) and federal Inspectors General to provide effective oversight of over $1 trillion in pandemic-related funds, as well as transparency to the public about how those monies are being spent,” Horowitz and Westbrooks wrote. (Cheney and Warmbrodt, 6/15)

The Hill: Pelosi Mulls Making Masks Mandatory At Committee Hearings 
Speaker Nancy Pelosi (D-Calif.) said Monday that she is looking into making facial coverings a requirement for lawmakers at House committee hearings during the coronavirus pandemic. Pelosi told Democrats during a caucus call that, in accordance with public health guidelines, she is considering making masks mandatory for attendees instead of only encouraged. (Marcos, 6/15)

And in other news on the economic toll of the virus —

The Washington Post: Homelessness Crisis Is Expected In D.C. When Coronavirus Emergency Ends And Evictions Begin
Just about the time the District is coming out of the coronavirus crisis, it will face a new one over homelessness, housing experts warn. Thousands of tenants who recently lost their jobs because of the pandemic shutdown can no longer afford to pay their rent or will soon lack the money to do so. They’re able to stay in their homes for now because of an emergency moratorium on evictions. But the ban ends 60 days after Mayor Muriel E. Bowser (D) lifts the public health emergency, and evictions are likely to surge, according to officials and advocates for tenants. (McCartney, 6/15)

Politico: Swaths Of New York City Small Businesses Face Extinction In The Wake Of Coronavirus
As New York City begins to emerge from the coronavirus shutdown, thousands of its small businesses — many already struggling before the pandemic hit — will face a near-impossible road to recovery. From Brooklyn dive bars to Soho boutiques, small businesses are written into the city’s DNA. But even before the rise of Etsy and Amazon, they operated on tight margins. And while residential tenants have been able to organize their political power to bring about a sea change in Albany and New York City Hall, small business has never been a unified political force in the biggest U.S. city. (Chadha, 6/16)

The Wall Street Journal: ‘Running On Fumes’: Restaurants Trying To Reopen Face Cash Crunch
Denver chef Justin Brunson got caught in the middle of the financial squeeze facing restaurants as they try to reopen. He needed cash to start serving again at his four establishments, and he is owed money by some of the 150 restaurants that are customers of his high-end butcher business. At his flagship restaurant, meat-heavy Old Major, the cost of food, staff, cleaning and training for new sanitary protocols was already daunting. When Mr. Brunson sat down a few weeks ago to calculate the cost of reopening, he had a harsh realization: “There’s no money in the bank, and I probably need 80 grand to start up again,” Mr. Brunson said. (Scheck and Haddon, 6/16)

ABC News: Public Schools At Risk Over States' Projected Budget Deficits Due To Coronavirus 
States face an estimated $615 billion budget deficit over the next three years due to the economic fallout from COVID-19 — a shortfall that could rival the deficits seen after the 2008 recession and could threaten to throw the nation's public schools into crisis, according to projections by the Center on Budget and Policy Priorities, which were provided to lawmakers on Monday. The estimates, featured in testimony for a hearing by the congressional House Education and Labor Committee, are particularly worrisome for schools in low-income areas that more frequently rely on state funds over funding from local property taxes. (Tatum, 6/15)