Posts tagged American Rescue Plan
Flanked by Union Allies, Biden Touts $36 Billion Pension Bailout
December 9, 2022 // President Joe Biden announced a $36 billion bailout for the Central States Pension Fund, one of the nation’s biggest multi-employer plans, touting the help for union workers and retirees as he looks to mend ties with organized labor after a contentious rail deal.
Union bosses rake it in, even as their ranks shrink
November 15, 2022 // The new report, provocatively titled “Labor’s Fortress of Finance” by the pro-labor Radish Research, looks at the balance sheets of big unions since 2010, based on financial statements they must file with the Department of Labor. It finds that, over that period, unions have lost some 710,000 members, yet union membership revenues increased by one-third, to $18 billion — 85% of that from fees on members, which grew by a similar rate. By contrast, union spending increased by just 18% over that time. The money that unions expended representing workers, for instance, improved by just 13%. As a result, the surplus (the equivalent of profits at a business) that unions generated grew almost sixfold, to nearly $2.5 billion in 2021, from just $426 million in 2010. Collectively, their cash on hand more than doubled in 11 years to $11.3 billion, their investments soared nearly 150% to $17.4 billion, and their net assets rose 120%, to $31.6 billion.
Biden’s Abuse of Power Causes CBO to Raise Cost Estimate of Private Pension Bailouts by $4.5 Billion
October 18, 2022 // The Congressional Budget Office released a report on Sept. 30 that says President Joe Biden’s changes to the rules of a recent taxpayer bailout of select private union pension plans will add $4.5 billion in costs, bringing the taxpayers’ tab to $90.4 billion over the 2022-2032 period. And that’s likely just the tip of the iceberg. Ordinarily, $4.5 billion in additional spending as a result of administrative action would elicit scrutiny and challenges. After all, Congress—not the administration—has the powers of the purse, and the Biden administration’s Pension Benefit Guaranty Corporation has directly altered the law passed by Congress.
Labor unions, including AFSCME, rally for Biden at NEA
September 28, 2022 // He talked about the American Rescue Plan, which passed Congress with help from AFSCME members and brought the economy back from the brink, and about the Inflation Reduction Act, which will lower prescription drug costs, reduce the deficit and do so much more. He got big cheers from the crowd when he mentioned his plan for student debt relief, which will lower loan balances for millions of borrowers – “a game changer” for many Americans, he said. Biden praised his administration’s track record on the economy, pointing out that 10 million jobs have been created since he became president. He also said more than 220 million Americans have been vaccinated against COVID-19 since he took office.
Congress’ Vote on Delphi Pensions Bailout Shows Problem With Putting Unions Above Law
July 28, 2022 // Congress is set to vote this week on HR 6929 to retroactively bail out the pensions of about 20,000 former Delphi auto-parts employees who had their pensions reduced beginning in 2009. This proposed bailout, the Susan Muffley Act of 2022, is different in a number of ways from the recent no-strings-attached $97 billion bailout of about 250 select union pension plans, but it highlights the problem of lawmakers putting powerful unions above the law and requiring taxpayers to pay for their wrongdoing. Delphi Salaried Retirees Association, Bruce Gump, James Sherk, Todd Zywicki, Auto Bailout or UAW Bailout? Taxpayer Losses Came From Subsidizing Union Compensation,
Opinion: Biden’s pension ‘guarantee’ stretches the law to bail out unions
July 15, 2022 // “PBGC has, after this further review of the statute, additional consultation with its Board agencies [Treasury, DOL, and, Commerce], consideration of comments, and extensive actuarial modeling, determined that an alternative interpretation… is reasonable and more likely to result in the [taxpayer funds] an eligible plan receives being sufficient for the plan to pay full benefits through 2051.” There is no limiting principle on the spending of taxpayer money if agencies can disregard the law with the hope no one has the standing to obtain judicial review. PBGC’s rationale that the American Rescue Plan’s goal to keep plans going through 2051 justifies overriding the statute to change the interest rate would also justify illegally pumping additional billions into plans if they run out of money before 2051, which is exactly what President Biden “guaranteed” on Wednesday. The bailout will cover only a small fraction of the $757 billion of underfunding in the plans. More than 95 percent of the system’s 11 million participants are in plans less than 60 percent funded. Why not also ignore the law’s eligibility criteria and bailout other plans? Chevron v Natural Resources Defense Council, Majority Leader Charles Schumer
Biden spotlights effort to rescue union pensions
July 7, 2022 // Reassuring frustrated blue-collar voters, President Joe Biden on Wednesday visited Ohio iron workers to highlight federal action to shore up troubled pension funding for millions now on the job or retired — and to make his political case that he’s been a champion for workers in the White House. Bill DeVito, Jeffrey Carlson, Rob Portman, Democratic Rep. Tim Ryan, Republican J.D. Vance,
Op-ed: Small Business Administration should fight for entrepreneurs, not unions
June 24, 2022 // Nonetheless, a recent Freedom Foundation analysis of SBA’s PPP loan database identified 223 loans totaling $36.1 million made to labor unions and related organizations between March 2020 and March 2021 that, as mostly 501(c)(5) nonprofit groups, were not eligible to participate in the program. The recipient list included a dozen teachers unions and advocacy groups, such as the Michigan Education Association and the Memphis-Shelby County Education Association, ironically among the fiercest champions of lockdown policies, the effects of which PPP funds were intended to alleviate. Alabama State Employees Association, Maryland Public Employees Council, Alaska AFL-CIO, Pennsylvania AFL-CIO, Isabel Guzman, Small Business Committee,
Congress thwarted Biden on unions. Or did it?
June 24, 2022 // “One of the biggest problems with this DOL is its obvious union favoritism,” the top Republican on the House Education and Labor Committee, Virginia Foxx (R-N.C.), said at a hearing this month. “This department has bowed low enough before union bosses to taste dirt. How many times has the Biden administration’s DOL kowtowed before union bosses instead of standing up for workers?” From installing former union official Marty Walsh as Labor secretary, to outfitting the National Labor Relations Board with union alums, to issuing a spate of union-friendly executive orders, the White House has taken significant steps toward expanding union membership despite the challenges presented by a narrowly divided Congress. Steve Rosenthal, Rep. Donald Norcross, Shane Larson, Communication Workers of America, Kate Bronfenbrenner, Doug Parker, Alice Stock, Lauren McFerran, Bobby Scott, Nick Niedzwiadek
Unions rally for COVID hazard pay after arbitrator sides with the state
June 22, 2022 // “Pay us our motherf***ing money.” The American Rescue Plan is the $1.9 trillion COVID relief package approved early in President Joe Biden’s term. That measure sent more than $10 billion to Ohio — about half it going to the state and the other half split among local governments. Columbus Mayor Andrew Ginther contrasted his decision to use that funding for public employees. “If we can do it at the local level, we certainly can do it at the state level,” Ginther said. “And we stand in solidarity with you today.” Lorain Correctional Institution, Appalachian Community Grant Program, Wilson Humphrey,