‘DOGE’ senator seeks to ensure feds can continue pursuing COVID fraudsters, debtors, as IG sounds alarm

A recent investigation by government watchdogs has revealed an alarming rate of defaults on COVID-era Paycheck Protection Program (PPP) loans, prompting calls for accountability and action. Senator Joni Ernst, a prominent figure in the GOP, has been alerted to the issue and is pushing for measures to hold fraudsters accountable.

According to Inspector General for Pandemic Recovery (SIGPR) Brian Miller, the loan programs have reported losses of $1.27 billion as of November 2024, with defaults increasing since debtors began missing payments in July 2023. Miller emphasized the importance of SIGPR’s role in protecting taxpayers and preventing the crisis from escalating further.

However, the inspector general also noted that their office is facing challenges, including staff reductions and legal processes associated with shutting down the agency. There are currently 130 potential defendants identified for investigation, but without adequate resources, justice may not be served.

Senator Ernst has warned that dishonest applicants could potentially defraud the government of $200 billion in COVID-19 relief funds if immediate action is not taken. She has introduced the Complete COVID Collections Act, a bill that would extend SIGPR’s authorization through 2030 and expand its jurisdiction to cover other SBA COVID-related programs. The proposal also aims to strengthen enforcement and collaboration with the Justice Department to ensure the recovery of funds and prosecution of offenders.

In response to the growing concerns, Ernst’s bill has gained support from several Republican senators, including Marsha Blackburn, Todd Young, James Lankford, and John Curtis. The legislation aims to address the loopholes that allowed fraudsters to exploit the PPP loans and other relief programs during the pandemic.

The investigation highlights the need for increased oversight and accountability in government loan programs to prevent fraud and protect taxpayer dollars. With bipartisan support and a comprehensive approach to addressing the issue, Senator Ernst and her colleagues are working towards ensuring that relief funds are used responsibly and effectively in the fight against COVID-19.