Press Releases

Waters and San Nicolas Call on Treasury and the Fed to Stop Excluding Territories from Receiving COVID-19 Relief

Washington, DC, May 13, 2020
Tags: COVID-19

Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, and Congressman Michael San Nicolas (D-GU), Vice Chair of the House Financial Services Committee, sent a letter to Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell urging them to ensure territories are not excluded from the federal government’s COVID-19 response efforts.

In the letter, the lawmakers pointed to the Congressional intent behind the Coronavirus Aid, Relief and Economic Security Act (CARES Act), which required the Treasury Secretary to work with the Federal Reserve to establish a facility that would support the market for borrowing by state, municipal, and territorial governments, however the Federal Reserve have thus far barred territories from participating.

“Local governments are at the front lines of responding to this crisis,” the lawmakers wrote。 “在未来几个月内,地区政府将继续承担意料之外的紧急费用,以解决公共卫生紧急展开。城市是需要贷款,以满足covid-19的费用,但美联储的成立门槛人口落在下至少可以求助于他们各自的州政府救济,而是地区政府不能。至关重要的是,在批准的关心行为的意图国会通过澄清领​​土有资格参加市级流动性工具完成“。

See the full text of the letter below.

The Honorable Steven Mnuchin
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Avenue NW
Washington, D.C. 20220

The Honorable Jerome H. Powell
Chair
Board of Governors of the Federal Reserve System
20th Street & Constitution Avenue NW
Washington, D.C. 20551

Secretary Mnuchin and Chair Powell:

作为美国金库和联邦储备系统的理事会(联邦储备或供给)的部门采取广泛的动作响应于covid-19流行,我们写强调为充分包容美国的需要领土联邦响应。没有这个国家或地球的一部分,是从持续的公共卫生疫情及其经济影响豁免。疾病控制和预防中心报告了数以千计的活跃covid-19例,超过100人死亡在美国波多黎各,关岛,北马里亚纳群岛的岛屿,和维尔京群岛的领土。[1] 失业图片在领土-其中wasalready甚至在covid-19爆发-也恶化以上大陆失业数字升高;在波多黎各,失业权利要求从1172期间结束2020年3月14日的一周期间结束2020年4月4日的一周上升到66555,并且在处女岛屿,权利要求44中结束2020年3月14日的一周期间上升到250一周结束2020年3月28日。[2] In April, Guam’s Department of Labor estimated that 38,000 workers will be applying for unemployment—an astonishing 58% of the island’s workforce.[3] The federal government has an obligation to ensure that nearly four million American citizens residing in one of the U.S. territories are not left out of efforts to recover from this pandemic.

Through the Coronavirus Aid, Relief and Economic Security Act (CARES Act) signed into law on March 27, Congress instructed the Treasury Secretary to seek the establishment of a facility that would support the market for borrowing by state, municipal, and territorial governments.[4] 尽管这些指令的清楚和明确纳入地区政府的,美联储的流动性市政设施最初宣布于4月9日的合资格债务发行中没有列出的领土。此外,尽管早些时候提出纠正原来公布,美联储的4月27日以后公布显著扩大符合条件的发行人,市委,流动性工具将支持的数量,但继续排除地区政府。[5][6] 地方政府在应对这场危机的最前线。在未来几个月内,地区政府将继续承担意料之外的紧急费用,以解决公共卫生紧急展开。城市是需要贷款,以满足covid-19的费用,但美联储的成立门槛人口落在下至少可以求助于他们各自的州政府救济,而是地区政府不能。至关重要的是,在批准的关心行为的意图国会通过澄清领​​土有资格参加市级流动性工具实现。

此外,在4月9日,美联储公布了主要街道的贷款利率经过主要街道贷款计划(MSLP),以提供流动性,以小型和中型企业,并通过由创建的薪水保护计划(PPP)流动性便利关心行动。目前,我们已经看到的访问这些设施之前,他们已经通过小企业被充分利用大,连接良好的业务报告。[7] Large restaurant chains with thousands of employees nationally and over 70 publicly traded companies reportedly exploited loopholes in the PPP’s design to gain access to PPP loans, causing the program to run out of money at a much faster rate than it might have otherwise.[8] 同样的关注延伸到对被占领土生活中必不可少的业务。相对于联邦政府援助的企业的数量已经收到,从PPP贷款计划的最新数据表明,位于领土,企业是滞后位于内地业务。例如,虽然怀俄明州和佛蒙特州的状态合并有波多黎各刚刚超过三分之一的人口,企业在怀俄明州和佛蒙特州迄今已收到超过4000多个已批准的PPP贷款。[9] Small businesses are a critical component of the economy in the territories. In Guam, for instance, economic expansion in 2019 benefited the island’s 3,493 small business establishments, helping create 1,130 new jobs.[10] Essential businesses with an important presence in the territories must be able to access the same relief as mainland businesses. They should not be disadvantaged in accessing the PPP.

到covid-19联邦政府的反应的每一个环节都必须认识到在确保美国经济作出充分和迅速恢复领土的重要性。当联邦政府未能对待领土过去同样,它只能加剧经济的危害。例如,联邦政府结束的税收优惠政策,帮助企业吸引到波多黎各后,巨大的财政问题接踵而至。[11] 同样,会议的结论是,失败同样匹配波多黎各的医疗贡献与各国有意义的领土财政challenges.12贡献联邦政府,包括财政部和联邦储备,切不可领土作为二等公民对待的居民。 covid-19的礼物显著公共健康和所有美国人的经济挑战,我敦促你确保领土完整纳入联邦政府的反应。

Sincerely,

The Honorable Maxine Waters
Chairwoman
Committee on Financial Services

The Honorable Michael San Nicolas
Member of Congress

cc: The Honorable Patrick McHenry, Ranking Member, House Committee on Financial Services

____________________________
[1] CDC, “Cases in U.S.,” (last accessed May 6, 2020), //www.cdc.gov/coronavirus/2019-ncov/casesupdates/cases-in-us.html ; and CDC, “Morbidity and Mortality Weekly Report,” (Apr. 10, 2020), //www.cdc.gov/mmwr/volumes/69/wr/pdfs/mm6915e4-H.pdf.
[2] Week Unemployment Insurance Claims Data, Department of Labor (accessed April 28, 2020), //oui.doleta.gov/unemploy/wkclaims/report.asp
[3] “Still no timeline on unemployment money for residents; employers can submit data this week,” USA Today, (April 19, 2020), //www.usatoday.com/story/money/2020/04/19/guam-department-labor-still-no-timelineunemployment-money/5161348002/
[4] §4002(10)(C) of the CARES Act
[5] See letter from Financial Services Committee Chairwoman Maxine Waters, April 16, 2020,
//www.travelleisure.org/news/documentsingle.aspx?DocumentID=406504
[6] See Federal Reserve’s expansion of municipal liquidity facility, April 27, 2020, //www.federalreserve.gov/newsevents/pressreleases/monetary20200427a.htm
[7] “ShakeShack to return small business loan after uproar,” Politico, (April 20, 2020), //www.politico.com/states/new-york/city-hall/story/2020/04/20/shake-shack-to-return-small-business-loanafter-uproar-1277903
[8] “White House, GOP face heat after hotel and restaurant chains helped run small businesses dry,” Washington Post, (April 20, 2020), //www.washingtonpost.com/business/2020/04/20/white-house-gop-face-heat-after-hotelrestaurant-chains-helped-run-small-business-program-dry/
[9] Paycheck Protection Program (PPP) Report, Small Business Administration, (April 16, 2020) //home.treasury.gov/system/files/136/SBA%20PPP%20Loan%20Report%20Deck.pdf
[10] “2019: Small Business Profile,” Small Business Administration, (2019), //advocacy.sba.gov/2019/04/24/2019-small-business-profiles-for-the-states-and-territories/
[11] “Tax Policy Helped Create Puerto Rico’s Fiscal Crisis,” Tax Foundation, (June 30, 2015),
//taxfoundation.org/tax-policy-helped-create-puerto-rico-s-fiscal-crisis/
[12] Congressional Task Force on Economic Growth in Puerto Rico (Dec. 20, 2016), page 19 (“While it would be wrong to attribute Puerto Rico’s annual deficits and accumulated debt solely, or even mainly, to the disproportionate burden it bears in financing its Medicaid program, it would also be wrong to deny that this funding disparity has been a meaningful factor contributing to Puerto Rico’s fiscal condition.”)


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