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The Great Grift: How billions in COVID relief aid was stolen or wasted…

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The Great Grift: How billions in COVID relief aid was stolen or wasted…

WASHINGTON (AP) — Much of the theft was brazen, even simple.

Fraudsters used the Social Security numbers of dead people and federal prisoners to get unemployment checks. Cheaters collected those benefits in multiple states. And federal loan applicants weren’t cross-checked against a Treasury Department database that would have raised red flags about sketchy borrowers.

Criminals and gangs grabbed the money. But so did a U.S. soldier in Georgia, the pastors of a defunct church in Texas, a former state lawmaker in Missouri and a roofing contractor in Montana.

All of it led to the greatest grift in U.S. history, with thieves plundering billions of dollars in federal COVID-19 relief aid intended to combat the worst pandemic in a century and to stabilize an economy in free fall.

An Associated Press analysis found that fraudsters potentially stole more than $280 billion in COVID-19 relief funding; another $123 billion was wasted or misspent. Combined, the loss represents 10% of the $4.2 trillion the U.S. government has so far disbursed in COVID relief aid.

That number is certain to grow as investigators dig deeper into thousands of potential schemes.

How could so much be stolen? Investigators and outside experts say the government, in seeking to quickly spend trillions in relief aid, conducted too little oversight during the pandemic’s early stages and instituted too few restrictions on applicants. In short, they say, the grift was just way too easy.

“Here was this sort of endless pot of money that anyone could access,” said Dan Fruchter, chief of the fraud and white-collar crime unit at the U.S. Attorney’s office in the Eastern District of Washington. “Folks kind of fooled themselves into thinking that it was a socially acceptable thing to do, even though it wasn’t legal.”

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The U.S. government has charged more than 2,230 defendants with pandemic-related fraud crimes and is conducting thousands of investigations.

Most of the looted money was swiped from three large pandemic-relief initiatives launched during the Trump administration and inherited by President Joe Biden. Those programs were designed to help small businesses and unemployed workers survive the economic upheaval caused by the pandemic.

The pilfering was wide but not always as deep as the eye-catching headlines about cases involving many millions of dollars. But all of the theft, big and small, illustrates an epidemic of scams and swindles at a time America was grappling with overrun hospitals, school closures and shuttered businesses. Since the pandemic began in early 2020, more than 1.13 million people in the U.S. have died from COVID-19, according to the Centers for Disease Control and Prevention.

Michael Horowitz, the U.S. Justice Department inspector general who chairs the federal Pandemic Response Accountability Committee, told Congress the fraud is “clearly in the tens of billions of dollars” and may eventually exceed $100 billion.

Horowitz told the AP he was sticking with that estimate, but won’t be certain about the number until he gets more solid data.

“I’m hesitant to get too far out on how much it is,” he said. “But clearly it’s substantial and the final accounting is still at least a couple of years away.”

Mike Galdo, the U.S. Justice Department’s acting director for COVID-19 Fraud Enforcement, said, “It is an unprecedented amount of fraud.”

Before leaving office, former President Donald Trump approved emergency aid measures totaling $3.2 trillion, according to figures from the Pandemic Response Accountability Committee. Biden’s 2021 American Rescue Plan authorized the spending of another $1.9 trillion. About a fifth of the $5.2 trillion has yet to be paid out, according to the committee’s most recent accounting.

Never has so much federal emergency aid been injected into the U.S. economy so quickly. “The largest rescue package in American history,” U.S. Comptroller General Gene Dodaro told Congress.

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The enormous scale of that package has obscured multibillion-dollar mistakes.

An $837 billion IRS program, for example, succeeded 99% of the time in getting economic stimulus checks to the proper taxpayers, according to the tax agency. Nevertheless, that 1% failure rate translated into nearly $8 billion going to “ineligible individuals,” a Treasury Department inspector general told AP.

An IRS spokesman said the agency does not agree with all the figures cited by the watchdog and noted that, even if correct, the loss represented a tiny fraction of the program’s budget.

The health crisis thrust the Small Business Administration, an agency that typically gets little attention, into an unprecedented role. In the seven decades before the pandemic struck, for example, the SBA had doled out $67 billion in disaster loans.

When the pandemic struck, the agency was assigned to manage two massive relief efforts — the COVID-19 Economic Injury Disaster Loan and Paycheck Protection programs, which would swell to more than a trillion dollars. SBA’s workforce had to get money out the door, fast, to help struggling businesses and their employees. COVID-19 pushed SBA’s pace from a walk to an Olympic sprint. Between March 2020 and the end of July 2020, the agency granted 3.2 million COVID-19 economic injury disaster loans totaling $169 billion, according to an SBA inspector general’s report, while at the same time implementing the huge new Paycheck Protection Program.

In the haste, guardrails to protect federal money were dropped. Prospective borrowers were allowed to “self-certify” that their loan applications were true. The CARES Act also barred SBA from looking at tax return transcripts that could have weeded out shady or undeserving applicants, a decision eventually reversed at the end of 2020.

“If you open up the bank window and say, give me your application and just promise me you really are who you say you are, you attract a lot of fraudsters and that’s what happened here,” Horowitz said.

The SBA inspector general’s office has estimated fraud in the COVID-19 economic injury disaster loan program at $86 billion and the Paycheck Protection program at $20 billion. The watchdog is expected in coming weeks to release revised loss figures that are likely to be much higher.

In an interview, SBA Inspector General Hannibal “Mike” Ware declined to say what the new fraud estimate for both programs will be.

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“It will be a figure that is fair, that is 1,000% defensible by my office, fully backed by our significant criminal investigative activity that is taking place in this space,” Ware said.

Ware and his staff are overwhelmed with pandemic-related audits and investigations. The office has a backlog of more than 80,000 actionable leads, close to a 100 years’ worth of work.

“Death by a thousand cuts might be death by 80,000 cuts for them,” Horowitz said of Ware’s workload. “It’s just the magnitude of it, the enormity of it.”

A 2022 study from the University of Texas at Austin found almost five times as many suspicious Paycheck Protection loans as the $20 billion SBA’s inspector general has reported so far. The research, led by finance professor John Griffin, found as much as $117 billion in questionable and possibly fraudulent loans, citing indicators such as non-registered businesses and multiple loans to the same address.

Horowitz, the pandemic watchdog chairman, criticized the government’s failure early on to use the “Do Not Pay” Treasury Department database, designed to keep government money from going to debarred contractors, fugitives, felons or people convicted of tax fraud. Those reviews, he said, could have been done quickly.

“It’s a false narrative that has been set out, that there are only two choices,” Horowitz said. “One choice is, get the money out right away. And that the only other choice was to spend weeks and months trying to figure out who was entitled to it.”

In less than a few days, a week at most, Horowitz said, SBA might have discovered thousands of ineligible applicants.

“24 hours? 48 hours? Would that really have upended the program?” Horowitz said. “I don’t think it would have. And it was data sitting there. It didn’t get checked.”

The Biden administration put in place stricter rules to stem pandemic fraud, including use of the “Do Not Pay” database. Biden also recently proposed a $1.6 billion plan to boost law enforcement efforts to go after pandemic relief fraudsters.

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“I think the bottom line is regardless of what the number is, it emanates overwhelmingly from three programs that were designed and originated in 2020 with too many large holes that opened the door to criminal fraud,” Gene Sperling, the White House American Rescue Plan coordinator, said in an interview.

“We came into office when the largest amounts of fraud were already out of the barn,” Sperling added.

In a statement, an SBA spokesperson declined to say whether the agency agrees with the figures issued by Ware’s office, saying the federal government has not developed an accepted system for assessing fraud in government programs. Previous analyses have pointed to “potential fraud” or “fraud indicators” in a manner that conveys those numbers as a true fraud estimate when they are not, according to the statement.

Han Nguyen, a spokesman for the SBA, said Monday that “the vast majority of the likely fraud originated in the first nine months of the pandemic programs, under the Trump administration.” For the COVID-19 economic injury disaster loan program, Nguyen said, SBA’s “working estimate” found $28 billion in likely fraud.

The coronavirus pandemic plunged the U.S. economy into a short but devastating recession. Jobless rates soared into double digits and Washington sent hundreds of billions of dollars to states to help the suddenly unemployed.

For crooks, it was like tossing chum into the sea to lure fish. Many of these state unemployment agencies used antiquated computer systems or had too few staff to stop bogus claims from being paid.

 

00:00

AP correspondent Donna Warder reports on Pandemic Aid Great Grift; the plundering of billions of dollars during the worst pandemic in a century.

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“Yes, the states were overwhelmed in terms of demand,” said Brent Parton, acting assistant secretary of the U.S. Labor Department’s Employment and Training Administration. “We had not seen a spike like this ever in a global event like a pandemic. The systems were underfunded. They were not resilient. And I would say, more importantly, were vulnerable to sophisticated attacks by fraudsters.”

Fraud in pandemic unemployment assistance programs stands at $76 billion, according to congressional testimony from Labor Department Inspector General Larry Turner. That’s a conservative estimate. Another $115 billion mistakenly went to people who should not have received the benefits, according to his testimony.

Turner declined AP’s request for an interview.

Turner’s task in identifying all of the pandemic unemployment insurance fraud has been complicated by a lack of cooperation from the federal Bureau of Prisons, according to a September “alert memo” issued by his office. Scam artists used Social Security numbers of federal prisoners to steal millions of dollars in benefits.

His office still doesn’t know exactly how much was swiped that way. The prison bureau had declined to provide current data about federal prisoners. The AP reached out to the bureau several times for comment, starting June 2. Bureau spokesperson Emery Nelson said on Monday the agency had provided in February and March “all the necessary data” to the Pandemic Response Accountability Committee. Turner is a member of the committee.

Ohio State Auditor Keith Faber saw trouble coming when safeguards to ensure the unemployment aid only went to people who legitimately qualified were lowered, making conditions ripe for fraud and waste. The state’s unemployment agency “took controls down because on the one hand, they literally were drinking from a firehose,” Faber said. “They had a year’s worth of claims in a couple of weeks. The second part of the problem was the (federal government) directed them to get the money out the door as quickly as possible and worry less about security. They took that to heart. I think that was a mistake.”

Ohio’s Department of Job and Family Services reported in February $1 billion in fraudulent pandemic unemployment claims and another $4.8 billion in overpayments.

The ubiquitous masks that became a symbol of the COVID-19 pandemic are seen on fewer and fewer faces. Hospitalizations for the virus have steadily declined, according to CDC data, and Biden in April ended the national emergency to respond to the pandemic.

But on politically divided Capitol Hill, lawmakers have not put the pandemic behind them and are engaged in a fierce debate over the success of the relief spending and who’s to blame for the theft.

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Too much government money, Republicans argue, breeds fraud, waste and inflation. Democrats have countered that all the financial muscle from Washington saved lives, businesses and jobs.

The GOP-led House Oversight and Accountability Committee is investigating pandemic relief spending. “We must identify where this money went, how much ended up in the hands of fraudsters or ineligible participants, and what should be done to ensure it never happens again,” the panel’s chairman, Rep. James Comer of Kentucky, said in a statement Tuesday.

Republicans and Democrats did, however, find common ground last year on bills to give the federal government more time to catch fraudsters. Biden in August signed legislation to increase the statute of limitations from five to 10 years on crimes involving the two major programs managed by the SBA.

The extra time will help federal prosecutors untangle pandemic fraud cases, which often involve identity theft and crooks overseas. But there’s no guarantee they’ll catch everyone who jumped at the chance for an easy payday. They’re busy, too, with crimes unrelated to pandemic relief funds.

“Do we have enough cases and leads that we could be doing them in 2030? We absolutely could,” said Fruchter, the federal prosecutor in the Eastern District of Washington. “But my experience tells me that likely there will be other priorities that will come up and will need to be addressed. And unfortunately, in our office, we don’t have a dedicated pandemic fraud unit.”

Congress has not yet passed a measure that would give prosecutors the additional five years to go after unemployment fraudsters. That worries Turner, the Labor Department watchdog. Without the extension, he told Congress in a late May report, people who stole the benefits may escape justice.

Sperling, the White House official, said any future crisis that requires government intervention doesn’t have to be a choice between helping people in need and stopping fraudsters.

“The prevention strategy going forward is that in a crisis, you can focus on fast delivery to people in desperate situations without feeling that you can only get that speed by taking down commonsense anti-fraud guardrails,” he said.

___

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McDermott reported from Providence, Rhode Island.

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How a faulty CrowdStike update crashed computers around the world

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How a faulty CrowdStike update crashed computers around the world

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft’s Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn’t an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

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Worrying about the fragility of a globally connected technology ecosystem is nothing new. It’s what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft’s Windows operating system.

But what’s different now is “that these companies are even more entrenched,” Falco said. “We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it’s known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC’s “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

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Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”

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Associated Press writer Alan Suderman in Richmond, Virginia, contributed to this report.

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Worldwide IT outage: Airlines rush to get back on track

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Worldwide IT outage: Airlines rush to get back on track

Transport providers, businesses and governments on Saturday are rushing to get all their systems back online after long disruptions following a widespread technology outage.

The biggest continuing effect has been on air travel. Carriers canceled thousands of flights on Friday and now have many of their planes and crews in the wrong place, while airports facing continued problems with checking in and security.

At the heart of the massive disruption is CrowdStrike, a cybersecurity firm that provides software to scores of companies worldwide. The company says the problem occurred when it deployed a faulty update to computers running Microsoft Windows, noting that the issue behind the outage was not a security incident or cyberattack.

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Microsoft: 8.5 million devices on its Windows system were affected

Microsoft says 8.5 million devices running its Windows operating system were affected by a faulty cybersecurity update Friday that led to worldwide disruptions.

A Saturday blog post from Microsoft was the first estimate of the scope of the disruptions caused by cybersecurity firm CrowdStrike’s software update.

“We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines,” said the blog post from Microsoft cybersecurity executive David Weston.

“While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.”

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Weston said such a significant disturbance is rare but “demonstrates the interconnected nature of our broad ecosystem.” Windows is the dominant operating system for personal computers around the world.

Austrian doctors’ group calls for better data protection for patients

In Austria, a leading doctors organization said the global IT outage exposed the vulnerability of health systems reliant on digital systems.

“Yesterday’s incidents underscore how important it is for hospitals to have analogue backups” to safeguard patient care, Harald Mayer, vice president of the Austrian Chamber of Doctors, said in a statement on the organization’s website.

The organization called on governments to impose high standards in patient data protection and security and on health providers to train staff and put systems in place to manage crises.

“Happily, where there were problems, these were kept small and short-lived and many areas of care were unaffected” in Austria, Mayer said.

Germany warns of scams after major IT outage

BERLIN — The German government’s IT security agency says numerous companies are still struggling with the consequences of a far-reaching technology outage.

“Many business processes and procedures have been disturbed by the breakdown of computer systems,” the BSI agency said on its website.

But the agency also said Saturday that many impacted areas have returned to normal.

It warned that cybercriminals were trying to take advantage of the situation through phishing, fake websites and other scams and that “unofficial” software code was in circulation.

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The agency said it was not yet clear how faulty code ended up in the CrowdStrike software update blamed for triggering the outage.

European airports appear to be close to normal

LONDON — Europe’s busiest airport, Heathrow, said it is busy but operating normally on Saturday. The airport said in a statement that “all systems are back up and running and passengers are getting on with their journeys smoothly.“

Some 167 flights scheduled to depart from U.K. airports on Friday were canceled, while 171 flights due to land were axed.

Meanwhile, flights at Berlin Airport were departing on or close to schedule, German news agency dpa reported, citing an airport spokesman.

Nineteen flights took off in the early hours of Saturday after authorities exempted them from the usual ban on night flights.

On Friday, 150 of the 552 scheduled inbound and outbound flights at the airport were canceled over the IT outage, disrupting the plans of thousands of passengers at the start of the summer vacation season in the German capital.

German hospital slowly restoring its systems after widespread cancellations

BERLIN — The Schleswig-Holstein University Hospital in northern Germany, which on Friday canceled all elective surgery because of the global IT outage, said Saturday that it was gradually restoring its systems.

In a statement on its website, it forecast that operations at its two branches in Kiel and Luebeck would return to normal by Monday and that “elective surgery can take place as planned and our ambulances can return to service.”

Britain’s transport system still trying to get back on track

LONDON — Britain’s travel and transport industries are struggling to get back on schedule after the global security outage with airline passengers facing cancellations and delays on the first day of summer holidays for many school pupils.

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Gatwick Airport said “a majority” of scheduled flights were expected to take off. Manchester Airport said passengers were being checked in manually and there could be last-minute cancellations.

The Port of Dover said it was seeing an influx of displaced air passengers, with hourlong waits to enter the port to catch ferries to France.

Meanwhile, Britain’s National Cyber Security Center warned people and businesses to be on the lookout for phishing attempts as “opportunistic malicious actors” try to take advantage of the outage.

The National Cyber Security Center’s former head, Ciaran Martin, said the worst of the crisis was over, “because the nature of the crisis is that it went very wrong very quickly. It was spotted quite quickly and essentially it was turned off.”

He told Sky News that some businesses would be able to get back to normal very quickly, but for sectors such as aviation it would take longer.

“If you’re in aviation, you’ve got people, planes and staffs all stranded in the wrong place… So we are looking at days. I’d be surprised if we’re looking at weeks.”

Germany airline expects most of its flights to run normally

BERLIN — Eurowings, a budget subsidiary of Lufthansa, said it expected to return to “largely scheduled” flight operations on Saturday.

On Friday, the global IT outage had forced the airline to cancel about 20% of its flights, mostly on domestic routes. Passengers were asked to take trains instead.

“Online check-in, check-in at the airport, boarding processes, booking and rebooking flights are all possible again,” the airline said Saturday on X. “However, due to the considerable extent of the global IT disruption there may still be isolated disruptions” for passengers, it said.

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Delta Air Lines and its regional affiliates have canceled hundreds of flights

DALLAS — Delta Air Lines and its regional affiliates canceled more than a quarter of their schedule on the East Coast by midafternoon Friday, aviation data provider Cirium said.

More than 1,100 flights for Delta and its affiliates have been canceled.

United and United Express had canceled more than 500 flights, or 12% of their schedule, and American Airlines’ network had canceled 450 flights, 7.5% of its schedule.

Southwest and Alaska do not use the CrowdStrike software that led to the global internet outages and had canceled fewer than a half-dozen flights each.

Portland, Oregon, mayor declares an emergency over the outage

PORTLAND, Ore. — Mayor Ted Wheeler declared an emergency Friday after more than half of the city’s computer systems were affected by the global internet outage.

Wheeler said during a news conference that while emergency services calls weren’t interrupted, dispatchers were having to manually track 911 calls with pen and paper for a few hours. He said 266 of the city’s 487 computer systems were affected.

Border crossings into the US are delayed

SAN DIEGO — People seeking to enter the U.S. from both the north and the south found that the border crossings were delayed by the internet outage.

The San Ysidro Port of Entry was gridlocked Friday morning with pedestrians waiting three hours to cross, according to the San Diego Union-Tribune.

Even cars with people approved for a U.S. Customers and Border Protection “Trusted Traveler” program for low-risk passengers waited up to 90 minutes. The program, known as SENTRI, moves passengers more quickly through customs and passport control if they make an appointment for an interview and submit to a background check to travel through customs and passport control more quickly when they arrive in the U.S.

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Meanwhile, at the U.S.-Canada border, Windsor Police reported long delays at the crossings at the Ambassador Bridge and the Detroit-Windsor tunnel.

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Biden pushes for party unity as more Dems call for him to step aside…

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Biden pushes for party unity as more Dems call for him to step aside…

WASHINGTON (AP) — A rapidly growing chorus of Democratic lawmakers called Friday for President Joe Biden to drop his reelection bid, even as the president insisted he’s ready to return to the campaign trail next week to counter what he called a “dark vision” laid out by Republican Donald Trump.

As more Democratic members of Congress urged him to drop out — bringing the total since his disastrous debate against Trump to nearly three dozen — Biden remained isolated at his beach house in Delaware after being diagnosed with COVID-19. The president, who has insisted he can beat Trump, was huddling with family and relying on a few longtime aides as he resisted efforts to shove him aside.

Late Friday, Ohio Sen. Sherrod Brown, a Democrat who is in a tough race for reelection, called for Biden to step aside.

Brown said in a statement that he agrees with “the many Ohioans” who have reached out to him. “I think the president should end his campaign,” he said.

And in a statement later Friday, Rep. Morgan McGarvey, D-Ky., also called on Biden to drop out while saying, “there is no joy in the recognition he should not be our nominee in November. But the stakes of this election are too high.”

Biden said Trump’s acceptance speech at the Republican National Convention showcased a “dark vision for the future.” The president, seeking to move the political conversation away from his fate and onto his rival’s agenda, said Friday he was planning to return to the campaign trail next week and insisted he has a path to victory over Trump, despite the worries of some of his party’s most eminent members.

“Together, as a party and as a country, we can and will defeat him at the ballot box,” Biden said. “The stakes are high, and the choice is clear. Together, we will win.”

Earlier in the day, his campaign chair, Jen O’Malley Dillion, acknowledged “slippage” in support for the president but insisted he’s “absolutely” remaining in the race and the campaign sees “multiple paths” to beating Trump.

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“We have a lot of work to do to reassure the American people that, yes, he’s old, but he can win,” she told MSNBC’s “Morning Joe” show. She said voters concerned about Biden’s fitness to lead aren’t switching to vote for Trump.

Meanwhile, the Democratic National Committee’s rulemaking arm held a meeting Friday, pressing ahead with plans for a virtual roll call before Aug. 7 to nominate the presidential pick, ahead of the party’s convention later in the month in Chicago.

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“President Biden deserves the respect to have important family conversations with members of the caucus and colleagues in the House and Senate and Democratic leadership and not be battling leaks and press statements,” Sen. Chris Coons of Delaware, Biden’s closest friend in Congress and his campaign co-chair, told The Associated Press.

It’s a pivotal few days for the president and his party: Trump has wrapped up an enthusiastic Republican National Convention in Milwaukee on Thursday. And Democrats, racing time, are considering the extraordinary possibility of Biden stepping aside for a new presidential nominee before their own convention.

Among the democrats expressing worries to allies about Biden’s chances were former President Barack Obama and Speaker Emerita Nancy Pelosi, who has privately told Biden the party could lose the ability to seize control of the House if he doesn’t step aside.

New Mexico Sen. Martin Heinrich called on Biden to exit the race, making him the third Senate Democrat to do so.

“By passing the torch, he would secure his legacy as one of our nation’s greatest leaders and allow us to unite behind a candidate who can best defeat Donald Trump and safeguard the future of our democracy,” said Heinrich, who’s up for reelection.

And Reps. Jared Huffman, Mark Veasey, Chuy Garcia and Mark Pocan, representing a wide swath of the caucus, together called on Biden to step aside.

“We must defeat Donald Trump to save our democracy,” they wrote.

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Separately, Rep. Sean Casten of Illinois wrote in an op-ed that with “a heavy heart and much personal reflection” he, too, was calling on Biden to “pass the torch to a new generation.”

Campaign officials said Biden was even more committed to staying in the race. And senior West Wing aides have had no internal discussions or conversations with the president about dropping out.

On Friday, Biden picked up a key endorsement from the political arm of the Congressional Hispanic Caucus. CHC BOLD PAC said the Biden administration has shown “unwavering commitment” to Latinos and “the stakes couldn’t be higher” in this election.

But there is also time to reconsider. Biden has been told the campaign is having trouble raising money, and key Democrats see an opportunity as he is away from the campaign for a few days to encourage his exit. Among his Cabinet, some are resigned to the likelihood of him losing in November.

The reporting in this story is based in part on information from almost a dozen people who insisted on anonymity to discuss sensitive private deliberations. The Washington Post first reported on Obama’s involvement.

Biden, 81, tested positive for COVID-19 while traveling in Las Vegas earlier this week and experienced “mild symptoms” including “general malaise” from the infection, the White House said.

White House doctor Kevin O’Connor said Friday that the president still had a dry cough and hoarseness, but that his COVID symptoms had improved.

Biden noted his illness while making a joke about Trump on social media Friday night, posting: “I’m stuck at home with COVID, so I had the distinct misfortune of watching Donald Trump’s speech to the RNC. What the hell was he talking about?”

In Congress, Democratic lawmakers have begun having private conversations about lining up behind Harris as an alternative. One lawmaker said Biden’s own advisers are unable to reach a unanimous recommendation about what he should do. More in Congress are considering joining the others who have called for Biden to drop out. Some prefer an open process for choosing a new presidential nominee.

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“It’s clear the issue won’t go away,” said Vermont Sen. Peter Welch, the other Senate Democrat who has publicly said Biden should exit the race. Welch said the current state of party angst — with lawmakers panicking and donors revolting — was “not sustainable.”

However, influential Democrats including Senate Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries are sending signals of concern.

“There is of course work to be done, and that in fact is the case because we are an evenly divided country,” Jeffries said in an interview on WNYC radio Friday.

But he also said, “The ticket that exists right now is the ticket that we can win on. … It’s his decision to make.”

To be sure, many want Biden to stay in the race. But among Democrats nationwide, nearly two-thirds say Biden should step aside and let his party nominate a different candidate, according to an AP-NORC Center for Public Affairs Research poll. That sharply undercuts Biden’s post-debate claim that “average Democrats” are still with him.

Amid the turmoil, a majority of Democrats think Vice President Kamala Harris would make a good president herself.

A poll from the AP-NORC Center for Public Affairs Research found that about 6 in 10 Democrats believe Harris would do a good job in the top slot. About 2 in 10 Democrats don’t believe she would, and another 2 in 10 say they don’t know enough to say.

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Associated Press writers Joey Cappelletti in Lansing, Michigan, Ellen Knickmeyer in Aspen, Colorado, Steve Peoples in Milwaukee, and Josh Boak, Will Weissert, Mary Clare Jalonick, Seung Min Kim and Stephen Groves in Washington contributed to this report.

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