September 2021 Posts
A new report from three government watchdog groups reveals a stunning figure: companies controlled by private equity firms received approximately $5.3 billion in federal CARES Act funding. Sadly, PE portfolios are not the only beneficiaries with deep pockets that got money from a relief package that was supposed to help small, struggling businesses and keep workers on the job.
Right now, three tech companies—#1 and #2 microchip makers Intel and Samsung and electric-truck start-up Rivian—are staging secret subsidy auctions, playing states against each other for new facilities.
As part of the $2.2 trillion pandemic relief CARES Act enacted in spring 2020, states received $150 billion in general assistance via the Coronavirus Relief Fund. Within limits tied to the pandemic, the Relief Fund is meant to be flexible, and allowing states, U.S. territories, and tribal governments to direct money where it is most needed. So how is that money being spent? States have been inconsistent in reporting. One positive outlier: Alabama.