Fossil fuel firms linked to Trump get millions in coronavirus small business aid

https://www.theguardian.com/environment/2020/may/01/fossil-fuel-firms-coronavirus-package-aid

Emily Holden in Washington
Fri 1 May 2020 08.16 EDT

US fossil fuel companies have taken at least $50m in taxpayer money they probably won’t have to pay back, according to a review of coronavirus aid meant for struggling small businesses by the investigative research group Documented and the Guardian.

A total of $28m is going to three coal mining companies, all with ties to Trump officials, bolstering a dying American industry and a fuel that scientists insist world leaders must shift away from to avoid the worst of the climate crisis.

The other $22m is being paid out to oil and gas services and equipment providers and other firms that work with drillers and coal miners.

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More than 40 Democratic lawmakers have argued that fossil fuel companies should not get any assistance under the coronavirus aid package.

Some Democrats have also warned the forgivable loans being made under Congress’ Paycheck Protection Program could be a transparency disaster.

Banks and lending institutions are distributing the money, so the government says it cannot track recipients in real time. The loans revealed have been made public only through news reports and securities filings by publicly-traded companies, although the Federal Reserve has committed to issuing monthly reports.

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The industry aid comes as the Trump administration is reportedly considering a broader bailout for oil and gas corporations, which were already under pressure before the coronavirus and have watched oil prices nosedive because of a global price war and low demand for gasoline. The US government could make loans to oil and gas companies, essentially making taxpayers investors in the industry.

The Federal Reserve on Thursday also announced changes to its lending rules that could help indebted petroleum firms.

“The idea that oil workers are getting a paycheck is great,” said Jamie Henn, a spokesman for the Stop the Money Pipeline campaign who co-founded the environment group 350.org. “The worry is that the money’s going to the top and not going to filter down.”

The $50m already paid to fossil fuel companies is a small fraction of the the $2.1tn Coronavirus Aid, Relief and Economic Security Act, known as the Cares Act. But the total assistance to the industry is likely much larger than can currently be tallied and will continue to grow.

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