cnbc--2020-12-14--Funding for vaccine distribution at stake in the push for a new Covid relief bill

Sandra Lindsay , a nurse at Long Island Jewish Medical Center , is inoculated with the coronavirus disease ( COVID-19 ) vaccine by Dr. Michelle Chester from Northwell Health at Long Island Jewish Medical Center in New Hyde Park , New York , U.S. , December 14 , 2020 .
Congressional efforts to fund state and local distribution of the Covid-19 vaccine continued to hang in the balance on Monday even as the first doses of Pfizer 's pioneering inoculation were being administered .
Lawmakers have yet to agree to a funding package to help health departments with the unprecedented @ @ @ @ @ @ @ billions of dollars are needed .
Negotiations over the funding have been tied to stalled talks over potential bills that would provide economic relief to millions of Americans who have suffered as a result of the coronavirus-related financial crisis .
Those talks , which seemed to be inching forward in recent weeks , have taken on a new urgency as the Christmas holiday approaches and the reality of viable Covid-19 vaccines has set in .
But it still was n't clear , as the week kicked off , whether Congress would make substantial @ @ @ @ @ @ @ relief package since the $ 2.2 trillion CARES Act was approved in March .
The latest plan , part of a $ 908 billion rescue bill put forward by a bipartisan slate of lawmakers , would allocate $ 6 billion for distribution efforts .
Lawmakers were expected to release text of the legislation on Monday .
The $ 6 billion price tag is in line with requests from the Trump administration , though it is sharply lower than what groups representing health departments say is needed .
For months , the Association of @ @ @ @ @ @ @ Association of Immunization Managers have been clamoring for Congress to allocate at least $ 8.4 billion .
`` These funds are urgently needed to expand and strengthen federal , state , local , territorial , and tribal capacity for a timely , comprehensive , and equitable vaccine distribution campaign , '' the groups wrote in October .
The groups said that $ 200 million that the Centers for Disease Control and Prevention had already provided amounted to a `` down payment . ''
CDC Director Robert Redfield told the Senate in September that @ @ @ @ @ @ @ 5.5 [ billion ] to $ 6 billion '' to distribute a Covid-19 vaccine and said the matter was `` urgent . ''
The Department of Health and Human Services , which houses the CDC , did not return a request for comment on the state of congressional negotiations .
So far , the nature of the most recent proposal to fund state and local vaccine distribution has only been released in summary format .
According to summaries of the legislation , the $ 908 billion package would include $ 3.42 billion for @ @ @ @ @ @ @ $ 2.58 billion to fund CDC `` vaccine distribution and infrastructure '' and $ 129 million for tribes and tribal organizations .
AIM Executive Director Claire Hannan said that her group was still learning the details of the $ 6 billion proposal , but that it was promising that lawmakers were separating funds for distribution of the vaccine from funds for contact tracing and testing .
But , she warned , allocating less funding than is required `` severely handicaps programs from enrolling more providers and from scaling up vaccination efforts . ''
@ @ @ @ @ @ @ n't reach an agreement , we fear that that programs will not be able to expand their capacity to enroll more providers , meaning that there could be fewer places and opportunities for people to get vaccinated and a longer timeframe to emerge from this pandemic , '' she said .
The bipartisan plan currently being discussed was hatched by a group of moderate senators from both major political parties and has been championed by the House Problem Solvers Caucus .
House Speaker Nancy Pelosi , D-Calif. , and Senate Minority Leader Chuck @ @ @ @ @ @ @ calling it a starting point for negotiations .
Senate Majority Leader Mitch McConnell , who would be crucial to getting any legislation passed , has yet to get on board .
On Monday , however , McConnell called vaccine distribution funds `` incredibly urgent . ''
`` This is the support that state and local governments need most urgently , '' McConnell said , saying the money would `` get citizens vaccinated right now to finish the fight . ''
The stakes of the ongoing negotiations extend beyond funding for vaccine distribution .
@ @ @ @ @ @ @ result of the coronavirus pandemic are set to lapse the day after Christmas , cutting payments to 12 million people .
Any new deal is also expected to provide more funding for small businesses which have been hurt by the public health crisis .
Despite the widespread recognition that some sort of relief must be granted , the obstacles to reaching a deal have remained largely unchanged for months .
Democrats have pushed for more spending and for assistance to state and local governments , which are facing budget crises as a result @ @ @ @ @ @ @ state and local aid and have insisted that any deal include protection for businesses against liability lawsuits stemming from the crisis .
In addition to those sticking points , independent Sen. Bernie Sanders of Vermont , a progressive , and Republican Sen. Josh Hawley of Missouri , a conservative , have suggested they would hold up a bill that does not include a direct payment to Americans along the lines of the $ 1,200 stimulus checks sent out earlier this year .
The $ 908 billion plan does not include direct payments .
@ @ @ @ @ @ @ been limited , though Treasury Secretary Steven Mnuchin has continued to negotiate with Pelosi .
President Donald Trump has shown little interest in corralling a deal on Capitol Hill , focusing instead on his failed legal efforts to overturn the 2020 election .
If no deal is reached in the coming weeks , the problem could soon be on the plate of President-elect Joe Biden .
Biden , who has already named several top doctors to posts in his administration , has signaled that distributing the Covid-19 vaccine will be his administration 's @ @ @ @ @ @ @ and pledged to deliver 100 million doses in his first 100 days .
But Biden , who will be sworn in on Jan. 20 , has suggested that his plan could be thwarted if Congress fails to reach an agreement .
During an address in Wilmington , Delaware , on Tuesday , the former vice president urged Congress to rapidly fund distribution efforts , warning that if they did not `` there is a real chance that , after an early round of vaccinations , the effort will slow and stall . ''
@ @ @ @ @ @ @ Congress to finish the bipartisan work underway now or millions of Americans may wait months longer — months longer — than they otherwise would have to to get their vaccinations , '' Biden said .

Sandra Lindsay, a nurse at Long Island Jewish Medical Center, is inoculated with the coronavirus disease (COVID-19) vaccine by Dr. Michelle Chester from Northwell Health at Long Island Jewish Medical Center in New Hyde Park, New York, U.S., December 14, 2020.
Congressional efforts to fund state and local distribution of the Covid-19 vaccine continued to hang in the balance on Monday even as the first doses of Pfizer's pioneering inoculation were being administered.
Lawmakers have yet to agree to a funding package to help health departments with the unprecedented vaccination campaign, despite bipartisan agreement that billions of dollars are needed.
Negotiations over the funding have been tied to stalled talks over potential bills that would provide economic relief to millions of Americans who have suffered as a result of the coronavirus-related financial crisis.
Those talks, which seemed to be inching forward in recent weeks, have taken on a new urgency as the Christmas holiday approaches and the reality of viable Covid-19 vaccines has set in.
But it still wasn't clear, as the week kicked off, whether Congress would make substantial progress toward passing its first major Covid-19 relief package since the $2.2 trillion CARES Act was approved in March.
The latest plan, part of a $908 billion rescue bill put forward by a bipartisan slate of lawmakers, would allocate $6 billion for distribution efforts. Lawmakers were expected to release text of the legislation on Monday.
The $6 billion price tag is in line with requests from the Trump administration, though it is sharply lower than what groups representing health departments say is needed.
For months, the Association of State and Territorial Health Officials and the Association of Immunization Managers have been clamoring for Congress to allocate at least $8.4 billion.
"These funds are urgently needed to expand and strengthen federal, state, local, territorial, and tribal capacity for a timely, comprehensive, and equitable vaccine distribution campaign," the groups wrote in October.
The groups said that $200 million that the Centers for Disease Control and Prevention had already provided amounted to a "down payment."
CDC Director Robert Redfield told the Senate in September that it would take "somewhere between $5.5 [billion] to $6 billion" to distribute a Covid-19 vaccine and said the matter was "urgent."
The Department of Health and Human Services, which houses the CDC, did not return a request for comment on the state of congressional negotiations.
So far, the nature of the most recent proposal to fund state and local vaccine distribution has only been released in summary format.
According to summaries of the legislation, the $908 billion package would include $3.42 billion for direct grants to states and localities, $2.58 billion to fund CDC "vaccine distribution and infrastructure" and $129 million for tribes and tribal organizations.
AIM Executive Director Claire Hannan said that her group was still learning the details of the $6 billion proposal, but that it was promising that lawmakers were separating funds for distribution of the vaccine from funds for contact tracing and testing.
But, she warned, allocating less funding than is required "severely handicaps programs from enrolling more providers and from scaling up vaccination efforts."
"Bottom line: if Congress doesn't reach an agreement, we fear that that programs will not be able to expand their capacity to enroll more providers, meaning that there could be fewer places and opportunities for people to get vaccinated and a longer timeframe to emerge from this pandemic," she said.
The bipartisan plan currently being discussed was hatched by a group of moderate senators from both major political parties and has been championed by the House Problem Solvers Caucus.
House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer have tentatively embraced the plan, calling it a starting point for negotiations.
Senate Majority Leader Mitch McConnell, who would be crucial to getting any legislation passed, has yet to get on board. On Monday, however, McConnell called vaccine distribution funds "incredibly urgent."
"This is the support that state and local governments need most urgently," McConnell said, saying the money would "get citizens vaccinated right now to finish the fight."
The stakes of the ongoing negotiations extend beyond funding for vaccine distribution.
Unemployment benefits that were expanded as a result of the coronavirus pandemic are set to lapse the day after Christmas, cutting payments to 12 million people. Any new deal is also expected to provide more funding for small businesses which have been hurt by the public health crisis.
Despite the widespread recognition that some sort of relief must be granted, the obstacles to reaching a deal have remained largely unchanged for months.
Democrats have pushed for more spending and for assistance to state and local governments, which are facing budget crises as a result of the pandemic. Republicans broadly oppose state and local aid and have insisted that any deal include protection for businesses against liability lawsuits stemming from the crisis.
In addition to those sticking points, independent Sen. Bernie Sanders of Vermont, a progressive, and Republican Sen. Josh Hawley of Missouri, a conservative, have suggested they would hold up a bill that does not include a direct payment to Americans along the lines of the $1,200 stimulus checks sent out earlier this year. The $908 billion plan does not include direct payments.
To date, White House involvement has been limited, though Treasury Secretary Steven Mnuchin has continued to negotiate with Pelosi.
President Donald Trump has shown little interest in corralling a deal on Capitol Hill, focusing instead on his failed legal efforts to overturn the 2020 election. If no deal is reached in the coming weeks, the problem could soon be on the plate of President-elect Joe Biden.
Biden, who has already named several top doctors to posts in his administration, has signaled that distributing the Covid-19 vaccine will be his administration's top priority in his first days, and pledged to deliver 100 million doses in his first 100 days.
But Biden, who will be sworn in on Jan. 20, has suggested that his plan could be thwarted if Congress fails to reach an agreement.
During an address in Wilmington, Delaware, on Tuesday, the former vice president urged Congress to rapidly fund distribution efforts, warning that if they did not "there is a real chance that, after an early round of vaccinations, the effort will slow and stall."
"Let me repeat: We need Congress to finish the bipartisan work underway now or millions of Americans may wait months longer — months longer — than they otherwise would have to to get their vaccinations," Biden said.


cnbc--2020-12-14--Michigan Rep. Paul Mitchell quits GOP over party's refusal to accept Trump loss to Biden

Rep. Paul Mitchell , R-Mich. , walks down the House steps after final votes of the week in the Capitol on Thursday , Feb. 15 , 2018 .
Rep. Paul Mitchell of Michigan quit the Republican Party on Monday over the GOP 's refusal to admit that President Donald Trump lost the election to President-elect Joe Biden .
Mitchell , in a scathing letter to GOP leaders , wrote that Trump 's baseless claims alleging widespread ballot fraud , and the Republican Party 's tolerance of those claims , threatened `` long-term harm to our democracy . ''
`` It @ @ @ @ @ @ @ our election system as though we are a third-world nation and incite distrust of something so basic as the sanctity of our vote , '' Mitchell wrote to Republican National Committee Chairwoman Ronna McDaniel and House Minority Leader Kevin McCarthy of California .
`` Further , it is unacceptable for the president to attack the Supreme Court of the United States because its judges , both liberal and conservative , did not rule with his side or that 'the Court failed him , ' '' wrote Mitchell , whose letter first was reported @ @ @ @ @ @ @ Congress when the current session ends early next year .
Trump has claimed he lost Michigan and several other battleground states whose electoral votes gave Biden his margin of victory in the Electoral College , because of illegal suppression of votes for him and by artificial inflation of Biden 's ballots .
The Electoral College is meeting Monday , and California 's votes pushed Biden over the threshold of 270 votes needed to win the White House by 5:30 p.m .
ET .
Mitchell wrote , `` If Republican leaders collectively sit back @ @ @ @ @ @ @ the steal ' rallies without speaking out for our electoral process , which the Department of Homeland Security said was 'the most secure in American history , ' our nation will be damaged . ''
`` I have spoken out clearly and forcefully in opposition to these messages , '' he wrote .
`` However , with the leadership of the Republican Party and our Republican Conference in the House actively participating in at least some of those efforts , I fear long-term harm to our democracy . ''
Mitchell , who represents @ @ @ @ @ @ @ said he would not seek a third term in Congress , complaining that the `` rhetoric and vitriol '' he saw in Washington overwhelmed the actual work of enacting policy .
Mitchell said that with more than 155 million people voting in the election , `` both administrative errors and even some fraudulent voting likely occurred . ''
But he also said that Trump `` did not lose Michigan because of Wayne County , '' a Democratic stronghold that the president claims saw fraud-laden ballot counts .
`` Rather he lost because of @ @ @ @ @ @ @ Oakland County , both previous Republican strongholds , '' the congressman wrote .
Mitchell said in his letter that he had voted for Trump `` despite some reservations about four more years under his leadership . ''
But he also wrote , `` The stability and strength of our democracy has been an ongoing concern for me . ''
`` I expressed strong concerns about the president 's response to Charlottesville , the anti-immigrant 'send them back ' rhetoric , and even the racist comments of my own colleagues in the House .
@ @ @ @ @ @ @ , the president and his surrogates continued efforts to undermine public confidence in Biden 's victory , arguing that Congress will have the final say in selecting the next president on Jan. 6 .
That is the date Congress is scheduled to confirm the Electoral College 's vote tallies .
Trump , his campaign and his allies have lost or withdrawn every suit that challenged the validity of ballots for Biden .
On Friday , the U.S. Supreme Court rejected a request by Texas to file a lawsuit challenging the voting processes of @ @ @ @ @ @ @ .
Before the Supreme Court acted on that request , Trump had called Texas ' case `` the big one '' that would reverse Biden 's win .

Rep. Paul Mitchell, R-Mich., walks down the House steps after final votes of the week in the Capitol on Thursday, Feb. 15, 2018.
Rep. Paul Mitchell of Michigan quit the Republican Party on Monday over the GOP's refusal to admit that President Donald Trump lost the election to President-elect Joe Biden.
Mitchell, in a scathing letter to GOP leaders, wrote that Trump's baseless claims alleging widespread ballot fraud, and the Republican Party's tolerance of those claims, threatened "long-term harm to our democracy."
"It is unacceptable for political candidates to treat our election system as though we are a third-world nation and incite distrust of something so basic as the sanctity of our vote," Mitchell wrote to Republican National Committee Chairwoman Ronna McDaniel and House Minority Leader Kevin McCarthy of California.
"Further, it is unacceptable for the president to attack the Supreme Court of the United States because its judges, both liberal and conservative, did not rule with his side or that 'the Court failed him,'" wrote Mitchell, whose letter first was reported by CNN.
Mitchell is retiring from Congress when the current session ends early next year.
Trump has claimed he lost Michigan and several other battleground states whose electoral votes gave Biden his margin of victory in the Electoral College, because of illegal suppression of votes for him and by artificial inflation of Biden's ballots.
The Electoral College is meeting Monday, and California's votes pushed Biden over the threshold of 270 votes needed to win the White House by 5:30 p.m. ET.
Mitchell wrote, "If Republican leaders collectively sit back and tolerate unfounded conspiracy theories and 'stop the steal' rallies without speaking out for our electoral process, which the Department of Homeland Security said was 'the most secure in American history,' our nation will be damaged."
"I have spoken out clearly and forcefully in opposition to these messages," he wrote.
"However, with the leadership of the Republican Party and our Republican Conference in the House actively participating in at least some of those efforts, I fear long-term harm to our democracy."
Mitchell, who represents Michigan's 10th District, last year said he would not seek a third term in Congress, complaining that the "rhetoric and vitriol" he saw in Washington overwhelmed the actual work of enacting policy.
Mitchell said that with more than 155 million people voting in the election, "both administrative errors and even some fraudulent voting likely occurred."
But he also said that Trump "did not lose Michigan because of Wayne County," a Democratic stronghold that the president claims saw fraud-laden ballot counts.
"Rather he lost because of dwindling support in areas including Kent and Oakland County, both previous Republican strongholds," the congressman wrote.
Mitchell said in his letter that he had voted for Trump "despite some reservations about four more years under his leadership."
But he also wrote, "The stability and strength of our democracy has been an ongoing concern for me."
"I expressed strong concerns about the president's response to Charlottesville, the anti-immigrant 'send them back' rhetoric, and even the racist comments of my own colleagues in the House."
Even as Mitchell quit the GOP, the president and his surrogates continued efforts to undermine public confidence in Biden's victory, arguing that Congress will have the final say in selecting the next president on Jan. 6.
That is the date Congress is scheduled to confirm the Electoral College's vote tallies.
Trump, his campaign and his allies have lost or withdrawn every suit that challenged the validity of ballots for Biden. On Friday, the U.S. Supreme Court rejected a request by Texas to file a lawsuit challenging the voting processes of Michigan, Georgia, Pennsylvania and Wisconsin.
Before the Supreme Court acted on that request, Trump had called Texas' case "the big one" that would reverse Biden's win.


cnbc--2020-12-14--Bipartisan group releases Covid relief bill as Congress faces pressure to send help

Congress faces more pressure than ever this week to pass another coronavirus relief bill .
Lawmakers ' ability to break a longstanding logjam and send more help will play a massive role in how much more the crisis ravages Americans ' health and wallets .
Congressional leaders aim to approve both pandemic aid and a spending package before government funding lapses Saturday .
Republicans and Democrats still need to strike a deal on both fronts with only days to spare before millions would face eviction or the loss of unemployment benefits .
A bipartisan group hopes to spur movement toward @ @ @ @ @ @ @ Senate and Democratic-held House .
Lawmakers from both chambers released a $ 908 billion rescue package Monday , split into two bills as the negotiators did not agree across the board .
Rep. Josh Gottheimer , a New Jersey Democrat and co-chair of the bipartisan House Problem Solvers Caucus that helped to spark the deal , said he hoped the bill would help to shape a proposal Congress can pass this week .
`` It does n't have to be every single word that we hand [ congressional leaders ] … but this @ @ @ @ @ @ @ , '' he told CNBC on Monday morning before the legislation was unveiled .
Members of both parties have stressed the need to send relief before they go home for the holidays .
What they have not agreed on since April is what help exactly the health-care system and economy need until widespread vaccination reins in a disease killing thousands of Americans every week .
`` It 's time for this body to collectively recognize that finger pointing does n't put food on the table for struggling families , '' Senate Majority Leader @ @ @ @ @ @ @ share of blaming Democrats for the aid delays , said Monday .
The Kentucky Republican called for a bill this week that addresses areas including Paycheck Protection Program small business loans , vaccine distribution funds and an extension of a pandemic-era unemployment insurance expansion .
He notably did not address the merits of the bipartisan legislation before its introduction .
McConnell previously rejected the plan after negotiators released an outline .
Ahead of the bill release Monday , Senate Minority Leader Chuck Schumer , D-N.Y. , said `` we look forward to reviewing @ @ @ @ @ @ @ added that his party is `` 100 % committed '' to approving more relief this week .
Congress has very little time .
The House is not expected to take any votes before Wednesday , according to Majority Leader Steny Hoyer 's office .
In one sign of efforts to find consensus , House Speaker Nancy Pelosi , D-Calif. , and Treasury Secretary Steven Mnuchin spoke for about 30 minutes on Sunday about spending and stimulus .
The pair plans to talk again Monday , according to Pelosi 's spokesman , Drew Hammill @ @ @ @ @ @ @ off at least one part of its to-do list this week .
Lawmakers are close to a deal on legislation to fund the government through Sept. 30 , 2021 , NBC News reported .
Appropriators hope to introduce a spending bill as soon as Tuesday , according to NBC .
Pelosi and McConnell have said they want to tie coronavirus relief measures to the funding legislation .
Congress faces a challenge in trying to resolve several sticking points before Friday .
The parties have failed to settle disputes over proposals to give businesses @ @ @ @ @ @ @ to cash-crunched state and local governments .
Sens .
Bernie Sanders , I-Vt. , and Josh Hawley , R-Mo.
, have threatened to delay passage of a bill if it does not include another direct payment to Americans .
The bipartisan proposal does not include a second $ 1,200 check .
Republicans have pushed for a legal immunity plan .
While they argue the provision would save small businesses from frivolous lawsuits , Democrats say it would endanger workers put into dangerous positions by their employers .
Meanwhile , Democrats and many Republicans @ @ @ @ @ @ @ as essential to preserve jobs for first responders and streamline the distribution of Covid-19 vaccines , which Americans started to receive Monday .
McConnell and President Donald Trump have contended the funds would bail out mismanaged states .
Bipartisan governors have called for at least $ 500 billion more in state and local relief .
Underscoring the disagreements , the bipartisan group in the Senate unveiled two separate bills Monday .
One includes the lawmakers ' legal immunity and state and local aid proposals .
The other contains everything else .
`` We @ @ @ @ @ @ @ local , '' Problem Solvers Caucus co-chair Rep. Tom Reed , R-N.Y. , told CNBC .
McConnell has urged Congress to pass a package without either provision and then address them in another bill after President-elect Joe Biden takes office on Jan. 20 .
Democrats have insisted on including new money for state and local governments now .
`` The Speaker believes , at a time when the virus is surging , that the need for state and local funding is even more important , especially given the states ' responsibility for distributing @ @ @ @ @ @ @ spokesman Hammill tweeted after the Democrat 's call with Mnuchin .
`` Health care workers and first responders are risking their lives to save lives and at the same time , are at the risk of losing their jobs without state and local support , '' he continued .
McConnell on Monday described grants for vaccine rollouts as `` the support that state and local governments need most urgently . ''
Democrats have backed the $ 908 billion proposal as the framework for a final deal .
The larger of the two bills @ @ @ @ @ @ @ .
The proposal puts about $ 300 billion into small business support , including restaurants and entertainment venues , according to a summary released by the bipartisan group .
Independent companies have struggled to survive , and the window to apply for PPP loans expired earlier this year even as funds remain in the program .
The proposal would extend provisions to expand unemployment insurance set to expire the day after Christmas for 16 weeks .
It would add a $ 300 per week federal jobless benefit supplement for four months .
If @ @ @ @ @ @ @ 12 million people would lose insurance .
The bill would temporarily extend an eviction moratorium through Jan. 31 and put $ 25 billion into rental assistance .
The measure would also put $ 6 billion into vaccine development distribution , and another $ 10 billion into testing and contact tracing .
It would also put $ 82 billion into education funding and extend federal student loan forbearance through April 1 .
The legislation would also direct $ 45 billion to the transportation sector and $ 10 billion into broadband access .
The second @ @ @ @ @ @ @ billion in state and local aid , according to a summary .
The federal government would dole out part of the money based on state population and a portion of it based on relative revenue losses during the pandemic .
States could not increase the amount of money they put into pensions if they receive aid .
The measure would also set a `` nationwide gross negligence standard '' for Covid-related claims .
Sen. Joe Manchin , a West Virginia Democrat and one of the bipartisan negotiators , described the plans as `` @ @ @ @ @ @ @ 's up to the leadership to take it , and make this happen in a timely basis , '' he said in unveiling the bills Monday .
But the bipartisan legislation will run into opposition .
For one , it does not include another round of direct payments .
Many progressives in Congress have argued that , without more direct financial relief , the plan would not offer enough help to people struggling to afford food and rent .
Sanders and Hawley did not follow through on a threat Friday to delay passage @ @ @ @ @ @ @ for one more week .
However , Sanders warned that he would do so this Friday if Congress has not agreed to send another direct payment .
Ahead of the release of the bipartisan bill text Monday , Sanders said Congress needs to provide more money to millions of people facing `` economic desperation . ''
`` Congress can not go home for the Christmas holidays until we pass legislation which provides a $ 1,200 direct payment to working class adults , $ 2,400 for couples , and a $ 500 payment to @ @ @ @ @ @ @ a statement .
`` This is what Democrats and Republicans did unanimously in March through the CARES Act .
This is what we have to do today . ''

Rep. Josh Gottheimer, D-N.J., speaks during a news conference with the Problem Solvers Caucus on Dec. 3, 2020. Stefani Reynolds | Bloomberg | Getty Images
Congress faces more pressure than ever this week to pass another coronavirus relief bill. Lawmakers' ability to break a longstanding logjam and send more help will play a massive role in how much more the crisis ravages Americans' health and wallets. Congressional leaders aim to approve both pandemic aid and a spending package before government funding lapses Saturday. Republicans and Democrats still need to strike a deal on both fronts with only days to spare before millions would face eviction or the loss of unemployment benefits. A bipartisan group hopes to spur movement toward legislation that can get through the GOP-controlled Senate and Democratic-held House. Lawmakers from both chambers released a $908 billion rescue package Monday, split into two bills as the negotiators did not agree across the board. Rep. Josh Gottheimer, a New Jersey Democrat and co-chair of the bipartisan House Problem Solvers Caucus that helped to spark the deal, said he hoped the bill would help to shape a proposal Congress can pass this week. "It doesn't have to be every single word that we hand [congressional leaders] … but this is a clear road map for them," he told CNBC on Monday morning before the legislation was unveiled.
watch now
Members of both parties have stressed the need to send relief before they go home for the holidays. What they have not agreed on since April is what help exactly the health-care system and economy need until widespread vaccination reins in a disease killing thousands of Americans every week. "It's time for this body to collectively recognize that finger pointing doesn't put food on the table for struggling families," Senate Majority Leader Mitch McConnell, who has done his share of blaming Democrats for the aid delays, said Monday. The Kentucky Republican called for a bill this week that addresses areas including Paycheck Protection Program small business loans, vaccine distribution funds and an extension of a pandemic-era unemployment insurance expansion. He notably did not address the merits of the bipartisan legislation before its introduction. McConnell previously rejected the plan after negotiators released an outline. Ahead of the bill release Monday, Senate Minority Leader Chuck Schumer, D-N.Y., said "we look forward to reviewing" what the group introduces. He added that his party is "100% committed" to approving more relief this week. Congress has very little time. The House is not expected to take any votes before Wednesday, according to Majority Leader Steny Hoyer's office.
watch now
In one sign of efforts to find consensus, House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin spoke for about 30 minutes on Sunday about spending and stimulus. The pair plans to talk again Monday, according to Pelosi's spokesman, Drew Hammill. Congress has come closer to checking off at least one part of its to-do list this week. Lawmakers are close to a deal on legislation to fund the government through Sept. 30, 2021, NBC News reported. Appropriators hope to introduce a spending bill as soon as Tuesday, according to NBC. Pelosi and McConnell have said they want to tie coronavirus relief measures to the funding legislation. Congress faces a challenge in trying to resolve several sticking points before Friday. The parties have failed to settle disputes over proposals to give businesses immunity from coronavirus-related lawsuits and send aid to cash-crunched state and local governments. Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., have threatened to delay passage of a bill if it does not include another direct payment to Americans. The bipartisan proposal does not include a second $1,200 check. Republicans have pushed for a legal immunity plan. While they argue the provision would save small businesses from frivolous lawsuits, Democrats say it would endanger workers put into dangerous positions by their employers. Meanwhile, Democrats and many Republicans have pushed for state and local funding as essential to preserve jobs for first responders and streamline the distribution of Covid-19 vaccines, which Americans started to receive Monday. McConnell and President Donald Trump have contended the funds would bail out mismanaged states. Bipartisan governors have called for at least $500 billion more in state and local relief. Underscoring the disagreements, the bipartisan group in the Senate unveiled two separate bills Monday. One includes the lawmakers' legal immunity and state and local aid proposals. The other contains everything else. "We can compromise on liability and state and local," Problem Solvers Caucus co-chair Rep. Tom Reed, R-N.Y., told CNBC. McConnell has urged Congress to pass a package without either provision and then address them in another bill after President-elect Joe Biden takes office on Jan. 20. Democrats have insisted on including new money for state and local governments now.
watch now
"The Speaker believes, at a time when the virus is surging, that the need for state and local funding is even more important, especially given the states' responsibility for distributing and administering the vaccine," Pelosi spokesman Hammill tweeted after the Democrat's call with Mnuchin. "Health care workers and first responders are risking their lives to save lives and at the same time, are at the risk of losing their jobs without state and local support," he continued. McConnell on Monday described grants for vaccine rollouts as "the support that state and local governments need most urgently." Democrats have backed the $908 billion proposal as the framework for a final deal. The larger of the two bills unveiled Monday would cost $748 billion. The proposal puts about $300 billion into small business support, including restaurants and entertainment venues, according to a summary released by the bipartisan group. Independent companies have struggled to survive, and the window to apply for PPP loans expired earlier this year even as funds remain in the program. The proposal would extend provisions to expand unemployment insurance set to expire the day after Christmas for 16 weeks. It would add a $300 per week federal jobless benefit supplement for four months. If the jobless benefits expansion lapses, about 12 million people would lose insurance. The bill would temporarily extend an eviction moratorium through Jan. 31 and put $25 billion into rental assistance. The measure would also put $6 billion into vaccine development distribution, and another $10 billion into testing and contact tracing. It would also put $82 billion into education funding and extend federal student loan forbearance through April 1. The legislation would also direct $45 billion to the transportation sector and $10 billion into broadband access. The second piece of legislation would send $160 billion in state and local aid, according to a summary. The federal government would dole out part of the money based on state population and a portion of it based on relative revenue losses during the pandemic. States could not increase the amount of money they put into pensions if they receive aid. The measure would also set a "nationwide gross negligence standard" for Covid-related claims. Sen. Joe Manchin, a West Virginia Democrat and one of the bipartisan negotiators, described the plans as "emergency" measures. "Now it's up to the leadership to take it, and make this happen in a timely basis," he said in unveiling the bills Monday. But the bipartisan legislation will run into opposition. For one, it does not include another round of direct payments. Many progressives in Congress have argued that, without more direct financial relief, the plan would not offer enough help to people struggling to afford food and rent. Sanders and Hawley did not follow through on a threat Friday to delay passage of a measure that funded the government for one more week. However, Sanders warned that he would do so this Friday if Congress has not agreed to send another direct payment. Ahead of the release of the bipartisan bill text Monday, Sanders said Congress needs to provide more money to millions of people facing "economic desperation." "Congress cannot go home for the Christmas holidays until we pass legislation which provides a $1,200 direct payment to working class adults, $2,400 for couples, and a $500 payment to their children," he said in a statement. "This is what Democrats and Republicans did unanimously in March through the CARES Act. This is what we have to do today." Subscribe to CNBC on YouTube.


cnbc--2020-12-14--Michigan GOP lawmaker loses committee posts after not ruling out violence during Electoral College v

Michigan GOP lawmaker loses committee posts after not ruling out violence during Electoral College vote

A man stands in front of the Michigan State Capitol Building holding an American flag with a `` Stop the Steal '' sign taped to it .
A Republican state representative in Michigan was stripped of his committee assignments by GOP leaders Monday after refusing to rule out that violence would occur in the capital of Lansing as members of the Electoral College met to confirm the state 's choice of Joe Biden as president of the United States .
State Rep. Gary Eisen , who last year tweeted a photo of a semi-automatic handgun and ammunition after Michigan 's @ @ @ @ @ @ @ not threaten to commit violence during the radio interview that led to his disciplining by the Michigan House speaker But Eisen twice hinted that violence could occur related to a `` Hail Mary '' effort by him and other GOP lawmakers to block the Electoral College 's electors selection of Biden , a Democrat , over President Donald Trump , a Republican .
His interviewer on WPHM-AM said he was `` concerned about violence today in Lansing , '' given Eisen 's vague description of what Republicans planned to do .
The interviewer @ @ @ @ @ @ @ assure me that this is going to be a safe day in Lansing , nobody 's going to get hurt ? ''
The lawmaker paused and then said , `` No . ''
`` I do n't know , because what we 're doing today is uncharted , it has n't been done , and it 's not me doing it , it 's the Michigan House , it 's the Michigan party ...
I 'm just here to witness , '' said Eisen , who represents St. Clair Township .
Eisen later @ @ @ @ @ @ @ the confusion over my comments , '' and said he wanted to attend the event he was talking about `` to help prevent violence , not promote it . ''
But House Speaker Lee Chatfield , a Republican , said : `` We as elected officials must be clear that violence has no place in our democratic process .
We must be held to a higher standard . ''
`` Because of that , Rep. Eisen has been removed from his committee assignments for the rest of the term , '' Chatfield said @ @ @ @ @ @ @ Monday to appoint an alternate slate of electors for Trump , as the president 's allies have suggested .
`` I fought hard for President Trump .
Nobody wanted him to win more than me , '' Chatfield said .
`` I think he 's done an incredible job .
But I love our republic , too .
I ca n't fathom risking our norms , traditions and institutions to pass a resolution retroactively changing the electors for Trump , simply because some think there may have been enough widespread fraud to give @ @ @ @ @ @ @ said .
`` That 's unprecedented for good reason .
And that 's why there is not enough support in the House to cast a new slate of electors .
I fear we 'd lose our country forever .
This truly would bring mutually assured destruction for every future election in regards to the Electoral College .
And I ca n't stand for that .
I wo n't . ''
Eisen 's controversial remarks came as the Michigan legislative buildings were closed Monday because of security concerns .
And they came two months @ @ @ @ @ @ @ criminal charges accusing them of plotting to kidnap Michigan Gov .
Gretchen Whitmer before the presidential election .
Authorities have said that the FBI heard the men and others talking about attacking the state capitol .
In April , thousands of demonstrators , some of whom were armed , protested at the state capitol over Whitmer 's state-at-home orders in response to the coronavirus pandemic .
Last year , when Whitmer proposed a 45-cent tax on gasoline , Eisen tweeted a photo of a handgun , ammunition and a magazine for that ammo @ @ @ @ @ @ @ only number with a 4 and 5 in it , that i will support is a 1911A1 .45 ACP Pistol . ''
`` We have been consistent in our position on issues of violence and intimidation in politics — it is never appropriate and never acceptable , '' Chatfield said in his statement Monday on Eisen .
`` That is true of threats or suggestions of violence against Gov .
Whitmer , Secretary ( of State Jocelyn ) Benson , Rep. ( Cynthia ) Johnson and others on the Oversight committee , Republicans @ @ @ @ @ @ @ Electoral College . ''
The Electoral College is set today to give Biden 306 votes , 36 more than he needs to win the presidency .
Trump and many of his allies , including GOP members of state houses and Congress , have refused to admit Biden won the election , and have repeatedly made baseless claims that the president was swindled out of victory by widespread ballot fraud .
No lawsuit filed by Trump 's campaign or its allies has succeeded in invalidating any ballot on a claim of fraud .
Trump @ @ @ @ @ @ @ or the U.S. Congress could void Biden 's victory .
Eisen , who had supported a failed Supreme Court challenge filed by Texas to block Michigan and three other states from certifying Biden 's popular vote wins in those states , said during his interview that there are legal methods open to the state House to deny Biden a win in Michigan .
He argued that there are legitimate questions about the mishandling of ballots and possible fraud during the election which justified delaying the selection of Biden as officials investigated those issues @ @ @ @ @ @ @ other GOP House members were planned on taking action , possibly on Monday , to thwart Biden 's selection .
`` This could be a historic event , '' Eisen said , without elaborating .
`` This is an option given to the House and to the legislators , given by the United States Constitution .
It 's not like we 're making it up .
`` This is a power given to us by the United States Constitution that if we think there is mishandling [ of ballots ] , some fraud @ @ @ @ @ @ @ the up-and-up , we can implement these powers . ''
Eisen said that he was asked to `` escort certain members in and out of the capitol '' Monday , but that plan had a `` monkey wrench '' thrown into it when a `` bomb threat '' to Lansing was called in from Wisconsin .
`` How convenient , '' Eisen said , casting doubt on the legitimacy of that threat , which he claimed led officials to close the state capitol building .
`` Whether it was true or not , @ @ @ @ @ @ @ said security at the capitol can not legally bar him from entry when he was on official business .
But , `` if they do , we are going to move to another location '' to attempt the Hail Mary effort he had said was being planned , Eisen said .
`` It 'll be all over the news later , '' he added .
When his interviewer told Eisen that sounded dangerous , the lawmaker replied , `` It is dangerous . ''
`` I was warned there was going to be @ @ @ @ @ @ @ protests , '' Eisen added .
`` We were warned there could be outbreaks of violence ... in Lansing , and they 're suggesting for everybody to stay home , and that 's not how we work in America . ''
Eisen later Monday issued a statement that said , `` I regret the confusion over my comments this morning , and I want to assure everyone that those of us who are supporting an alternative slate of electors intend to do so peacefully and legally . ''
`` I wanted to attend @ @ @ @ @ @ @ , not promote it .
I no longer plan to go to the Capitol with that group today , '' said Eisen , according to WILX-10 TV in Michigan .
`` `` My comments were meant to reflect that while our group intends to be peaceful , I did not feel I could speak for other groups , '' Eisen said .
`` Apparently some people are making credible threats of violence today , and I am glad local law enforcement is on the scene preventing any such action and keeping everyone safe @ @ @ @ @ @ @ be at the Capitol today to request to be seated as electors , intends to participate in our democracy peacefully .
We are all concerned about safety today and hopeful for a safe , legal and clear process at the Capitol . ''

A man stands in front of the Michigan State Capitol Building holding an American flag with a "Stop the Steal" sign taped to it.
A Republican state representative in Michigan was stripped of his committee assignments by GOP leaders Monday after refusing to rule out that violence would occur in the capital of Lansing as members of the Electoral College met to confirm the state's choice of Joe Biden as president of the United States.
State Rep. Gary Eisen, who last year tweeted a photo of a semi-automatic handgun and ammunition after Michigan's governor proposed a gas tax, did not threaten to commit violence during the radio interview that led to his disciplining by the Michigan House speaker
But Eisen twice hinted that violence could occur related to a "Hail Mary" effort by him and other GOP lawmakers to block the Electoral College's electors selection of Biden, a Democrat, over President Donald Trump, a Republican.
His interviewer on WPHM-AM said he was "concerned about violence today in Lansing," given Eisen's vague description of what Republicans planned to do.
The interviewer then asked Eisen, "Can you assure me that this is going to be a safe day in Lansing, nobody's going to get hurt?"
The lawmaker paused and then said, "No."
"I don't know, because what we're doing today is uncharted, it hasn't been done, and it's not me doing it, it's the Michigan House, it's the Michigan party ... I'm just here to witness," said Eisen, who represents St. Clair Township.
Eisen later issued a statement saying he regretted "the confusion over my comments," and said he wanted to attend the event he was talking about "to help prevent violence, not promote it."
But House Speaker Lee Chatfield, a Republican, said: "We as elected officials must be clear that violence has no place in our democratic process. We must be held to a higher standard."
"Because of that, Rep. Eisen has been removed from his committee assignments for the rest of the term," Chatfield said in a statement.
Chatfield also refused Monday to appoint an alternate slate of electors for Trump, as the president's allies have suggested.
"I fought hard for President Trump. Nobody wanted him to win more than me," Chatfield said.
"I think he's done an incredible job. But I love our republic, too. I can't fathom risking our norms, traditions and institutions to pass a resolution retroactively changing the electors for Trump, simply because some think there may have been enough widespread fraud to give him the win," the speaker said.
"That's unprecedented for good reason. And that's why there is not enough support in the House to cast a new slate of electors. I fear we'd lose our country forever. This truly would bring mutually assured destruction for every future election in regards to the Electoral College. And I can't stand for that. I won't."
Eisen's controversial remarks came as the Michigan legislative buildings were closed Monday because of security concerns.
And they came two months after six men were arrested on federal criminal charges accusing them of plotting to kidnap Michigan Gov. Gretchen Whitmer before the presidential election. Authorities have said that the FBI heard the men and others talking about attacking the state capitol.
In April, thousands of demonstrators, some of whom were armed, protested at the state capitol over Whitmer's state-at-home orders in response to the coronavirus pandemic.
Last year, when Whitmer proposed a 45-cent tax on gasoline, Eisen tweeted a photo of a handgun, ammunition and a magazine for that ammo, with the message, "The only number with a 4 and 5 in it, that I will support is a 1911A1 .45 ACP Pistol."
"We have been consistent in our position on issues of violence and intimidation in politics — it is never appropriate and never acceptable," Chatfield said in his statement Monday on Eisen.
"That is true of threats or suggestions of violence against Gov. Whitmer, Secretary (of State Jocelyn) Benson, Rep. (Cynthia) Johnson and others on the Oversight Committee, Republicans, Democrats, and members of the Electoral College."
The Electoral College is set today to give Biden 306 votes, 36 more than he needs to win the presidency.
Trump and many of his allies, including GOP members of statehouses and Congress, have refused to admit Biden won the election, and have repeatedly made baseless claims that the president was swindled out of victory by widespread ballot fraud. No lawsuit filed by Trump's campaign or its allies has succeeded in invalidating any ballot on a claim of fraud.
Trump's team now suggests that state houses or the U.S. Congress could void Biden's victory.
Eisen, who had supported a failed Supreme Court challenge filed by Texas to block Michigan and three other states from certifying Biden's popular vote wins in those states, said during his interview that there are legal methods open to the state House to deny Biden a win in Michigan.
He argued that there are legitimate questions about the mishandling of ballots and possible fraud during the election which justified delaying the selection of Biden as officials investigated those issues.
And he said that he and other GOP House members were planned on taking action, possibly on Monday, to thwart Biden's selection.
"This could be a historic event," Eisen said, without elaborating.
"This is an option given to the House and to the legislators, given by the United States Constitution. It's not like we're making it up.
"This is a power given to us by the United States Constitution that if we think there is mishandling [of ballots], some fraud, if this election is not on the up-and-up, we can implement these powers."
Eisen said that he was asked to "escort certain members in and out of the capitol" Monday, but that plan had a "monkey wrench" thrown into it when a "bomb threat" to Lansing was called in from Wisconsin.
"How convenient," Eisen said, casting doubt on the legitimacy of that threat, which he claimed led officials to close the state capitol building. "Whether it was true or not, we don't know."
Eisen said security at the capitol cannot legally bar him from entry when he was on official business.
But, "if they do, we are going to move to another location" to attempt the Hail Mary effort he had said was being planned, Eisen said.
"It'll be all over the news later," he added.
When his interviewer told Eisen that sounded dangerous, the lawmaker replied, "It is dangerous."
"I was warned there was going to be violence, there was going to be protests," Eisen added.
"We were warned there could be outbreaks of violence ... in Lansing, and they're suggesting for everybody to stay home, and that's not how we work in America."
Eisen later Monday issued a statement that said, "I regret the confusion over my comments this morning, and I want to assure everyone that those of us who are supporting an alternative slate of electors intend to do so peacefully and legally."
"I wanted to attend today's event to help prevent violence, not promote it. I no longer plan to go to the Capitol with that group today," said Eisen, according to WILX-10 TV in Michigan.
""My comments were meant to reflect that while our group intends to be peaceful, I did not feel I could speak for other groups," Eisen said.
"Apparently some people are making credible threats of violence today, and I am glad local law enforcement is on the scene preventing any such action and keeping everyone safe. Our group, who will also be at the Capitol today to request to be seated as electors, intends to participate in our democracy peacefully. We are all concerned about safety today and hopeful for a safe, legal and clear process at the Capitol."


cnbc--2020-12-14--U.S. sanctions Turkey over purchase of Russian S-400 missile system

WASHINGTON — The Trump administration slapped sanctions on Turkey on Monday over a multibillion-dollar acquisition of a Russian missile system .
The long-anticipated move is expected to further stoke tensions between Washington and Ankara in the weeks ahead of President-elect Joe Biden 's ascension to the White House and send a message to foreign governments considering future weapons deals with Russia .
In 2017 , Turkish President Recep Erdogan brokered a deal reportedly worth $ 2.5 billion with Russian President Vladimir Putin for the S-400 missile system .
The S-400 , a mobile surface-to-air missile system , is said to @ @ @ @ @ @ @ as well as the F-35 , America 's most expensive weapons platform .
Despite warnings from the United States and other NATO allies , Turkey accepted the first of four missile batteries in July 2019 .
A week later , the United States cut Turkey , a financial and manufacturing partner , from the F-35 program .
Under the Countering America 's Adversaries Through Sanctions Act , which Trump signed in August 2017 , Turkey faced potential economic sanctions for accepting the Kremlin 's missile system .
Trump had not yet imposed sanctions @ @ @ @ @ @ @ valued ally and an important regional security partner for the United States , and we seek to continue our decades-long history of productive defense-sector cooperation by removing the obstacle of Turkey 's S-400 possession as soon as possible , '' Secretary of State Mike Pompeo wrote in a statement announcing the sanctions .
The sanctions put a ban on all U.S. export licenses and authorizations to the Republic of Turkey 's Presidency of Defense Industries as well as an asset freeze and visa restrictions on the organization 's president , Ismail Demir , @ @ @ @ @ @ @ , it 's about damn time .
Strong , well-tailored sanctions are painfully overdue , '' said Thomas Karako , director of the Missile Defense Project at the Center for Strategic and International Studies , when asked about the sanctions .
`` The details will matter a lot .
This could turn out to be a softball .
If the sanctions are to be meaningful , they ca n't be mere token , '' Karako added .
The timing of the sanctions , more than a year after the delivery of the missile @ @ @ @ @ @ @ rock relations between Ankara and Washington for an incoming Biden administration .
State Department officials downplayed the timing , saying that the process of implementing sanctions was `` very serious '' and `` deliberative . ''
`` It took time to work through this complex set of issues , including , in particular , the fact that Turkey is a NATO ally , so I would not read too much into the timing of this and why today and not yesterday or three months ago , '' said Matthew Palmer , deputy assistant @ @ @ @ @ @ @ Eurasian Affairs , during a call with reporters .
`` This is the time that was necessary for us to conclude that deliberative process . ''
The latest revelation comes less than two months after reports surfaced that Turkey 's military began testing the S-400 system .
In October , both the departments of Defense and State condemned the apparent missile test off Turkey 's Black Sea coast .
`` The United States has expressed to the Government of Turkey , at the most senior levels , that the acquisition of Russian military @ @ @ @ @ @ @ , '' State Department spokeswoman Morgan Ortagus wrote in an emailed statement at the time .
`` The United States has been clear on our expectation that the S-400 system should not be operationalized , '' she added .
`` We object to Turkey 's purchase of the system and are deeply concerned with reports that Turkey is bringing it into operation , '' said chief Pentagon spokesman Jonathan Hoffman in an emailed statement .
`` It should not be activated .
Doing so risks serious consequences for our security relationship . ''
@ @ @ @ @ @ @ S-200 and S-300 missile systems , made its debut in 2007 .
Compared with U.S. systems , the Russian-made S-400 is believed to be capable of engaging a wider array of targets , at longer ranges and against multiple threats simultaneously .

Turkey's President Recep Tayyip Erdogan listens to an interpreter as US President Donald Trump makes a statement for the press a meeting at the Palace Hotel during the 72nd United Nations General Assembly on September 21, 2017 in New York City. Brendan Smialowski | AFP | Getty Images
WASHINGTON — The Trump administration slapped sanctions on Turkey on Monday over a multibillion-dollar acquisition of a Russian missile system. The long-anticipated move is expected to further stoke tensions between Washington and Ankara in the weeks ahead of President-elect Joe Biden's ascension to the White House and send a message to foreign governments considering future weapons deals with Russia. In 2017, Turkish President Recep Erdogan brokered a deal reportedly worth $2.5 billion with Russian President Vladimir Putin for the S-400 missile system. The S-400, a mobile surface-to-air missile system, is said to pose a risk to the NATO alliance as well as the F-35, America's most expensive weapons platform. Despite warnings from the United States and other NATO allies, Turkey accepted the first of four missile batteries in July 2019. A week later, the United States cut Turkey, a financial and manufacturing partner, from the F-35 program.
A Russian S-400 surface-to-air missile system. Sergei Malgavko | TASS via Getty Images
Under the Countering America's Adversaries Through Sanctions Act, which Trump signed in August 2017, Turkey faced potential economic sanctions for accepting the Kremlin's missile system. Trump had not yet imposed sanctions on Turkey. "Turkey is a valued ally and an important regional security partner for the United States, and we seek to continue our decades-long history of productive defense-sector cooperation by removing the obstacle of Turkey's S-400 possession as soon as possible," Secretary of State Mike Pompeo wrote in a statement announcing the sanctions. The sanctions put a ban on all U.S. export licenses and authorizations to the Republic of Turkey's Presidency of Defense Industries as well as an asset freeze and visa restrictions on the organization's president, Ismail Demir, and other top officers. "Well, it's about damn time. Strong, well-tailored sanctions are painfully overdue," said Thomas Karako, director of the Missile Defense Project at the Center for Strategic and International Studies, when asked about the sanctions. "The details will matter a lot. This could turn out to be a softball. If the sanctions are to be meaningful, they can't be mere token," Karako added. The timing of the sanctions, more than a year after the delivery of the missile system, could have the potential to rock relations between Ankara and Washington for an incoming Biden administration. State Department officials downplayed the timing, saying that the process of implementing sanctions was "very serious" and "deliberative." "It took time to work through this complex set of issues, including, in particular, the fact that Turkey is a NATO ally, so I would not read too much into the timing of this and why today and not yesterday or three months ago," said Matthew Palmer, deputy assistant secretary in the Bureau of European and Eurasian Affairs, during a call with reporters. "This is the time that was necessary for us to conclude that deliberative process."
Turkey's President Recep Tayyip Erdogan (L) and Russia's President Vladimir Putin last April. Adem Altan | AFP | Getty Images
The latest revelation comes less than two months after reports surfaced that Turkey's military began testing the S-400 system. In October, both the departments of Defense and State condemned the apparent missile test off Turkey's Black Sea coast. "The United States has expressed to the Government of Turkey, at the most senior levels, that the acquisition of Russian military systems such as the S-400 is unacceptable," State Department spokeswoman Morgan Ortagus wrote in an emailed statement at the time. "The United States has been clear on our expectation that the S-400 system should not be operationalized," she added. "We object to Turkey's purchase of the system and are deeply concerned with reports that Turkey is bringing it into operation," said chief Pentagon spokesman Jonathan Hoffman in an emailed statement. "It should not be activated. Doing so risks serious consequences for our security relationship." The S-400, the successor to the S-200 and S-300 missile systems, made its debut in 2007. Compared with U.S. systems, the Russian-made S-400 is believed to be capable of engaging a wider array of targets, at longer ranges and against multiple threats simultaneously.
A rocket launches from a S-400 missile system at the Ashuluk military base in Southern Russia on September 22, 2020. Dimitar Dilkoff | AFP | Getty Images
In multiple efforts to deter Turkey from buying the S-400, the State Department offered in 2013 and 2017 to sell the country Raytheon's Patriot missile system. Ankara passed on the Patriot both times because the U.S. declined to provide a transfer of the system's sensitive missile technology. "We have repeatedly tried through our diplomatic overtures to find a way to resolve this by means that don't involve the imposition of these mandatory sanctions," explained Christopher Ford, assistant secretary for International Security and Nonproliferation, during a call with reporters. "We have also repeatedly offered them military equipment to help meet their operational needs in a way that doesn't trigger sanctions and that is, in fact, a better answer in terms of the NATO interoperability of the Turkish Defense Forces. Unfortunately, Turkey turned down every single one of these efforts over the past several years now," Ford said, adding the United States had "no choice." Despite facing potential U.S. sanctions, a dozen countries have expressed interest in buying Russia's S-400 missile system.


cnbc--2020-12-14--Election tech company Smartmatic demands retractions from Fox, Newsmax, OAN over conspiracy theories

Antonio Mugica , CEO of Smartmatic , poses near the Houses of Parliament in London , Britain , December 11 , 2020 .
Picture taken December 11 , 2020 .
Smartmatic , the election technology company that has become embroiled in unfounded conspiracy theories about rigged voting in the 2020 presidential race , on Monday said it is issuing legal notices to three conservative media outlets demanding retractions `` for publishing false and defamatory statements . ''
The Florida-based company has been targeted by President Donald Trump 's personal lawyer , Rudy Giuliani , who is leading the Trump campaign @ @ @ @ @ @ @ 's projected presidential victory .
Smartmatic in a press release said its letters to Fox News , Newsmax and One America News Network make clear that the company `` is reserving all its legal rights and remedies , including its right to pursue defamation and disparagement claims . ''
The legal notice to Fox , shared with CNBC , accuses the news outlet of engaging `` in a concerted disinformation campaign against Smartmatic . ''
That 20-page letter cites dozens of claims , most of which were made on Fox 's air by @ @ @ @ @ @ @ was formerly affiliated with the campaign and has filed multiple unsuccessful lawsuits alleging fraud in key swing states won by Biden .
The majority of those statements were delivered in mid-November on programs hosted by Maria Bartiromo or Lou Dobbs , both of whom are also accused of making their own defamatory claims about Smartmatic .
Additionally , the letter includes references to statements made on a Fox program hosted by Jeanine Pirro , along with one statement made by Fox host Jesse Watters .
`` This is the first in a series @ @ @ @ @ @ @ our company against baseless attacks that are intended to damage our reputation as a means to undermine confidence in election outcomes , '' Smartmatic CEO Antonio Mugica said in a statement to CNBC .
`` We stand to lose billions of dollars in business in the coming years because of these baseless attacks on our company , '' Mugica 's statement said .
Smartmatic 's counsel will also be sending letters to Giuliani and Powell , according to a Frequently Asked Questions page that a company spokeswoman said will soon be published on @ @ @

Antonio Mugica, CEO of Smartmatic, poses near the Houses of Parliament in London, Britain, December 11, 2020. Picture taken December 11, 2020.
Smartmatic, the election technology company that has become embroiled in unfounded conspiracy theories about rigged voting in the 2020 presidential race, on Monday said it is issuing legal notices to three conservative media outlets demanding retractions "for publishing false and defamatory statements."
The Florida-based company has been targeted by President Donald Trump's personal lawyer, Rudy Giuliani, who is leading the Trump campaign's long-shot attempts to undo Joe Biden's projected presidential victory.
Smartmatic in a press release said its letters to Fox News, Newsmax and One America News Network make clear that the company "is reserving all its legal rights and remedies, including its right to pursue defamation and disparagement claims."
The legal notice to Fox, shared with CNBC, accuses the news outlet of engaging "in a concerted disinformation campaign against Smartmatic."
That 20-page letter cites dozens of claims, most of which were made on Fox's air by Giuliani and attorney Sidney Powell, who was formerly affiliated with the campaign and has filed multiple unsuccessful lawsuits alleging fraud in key swing states won by Biden.
The majority of those statements were delivered in mid-November on programs hosted by Maria Bartiromo or Lou Dobbs, both of whom are also accused of making their own defamatory claims about Smartmatic. Additionally, the letter includes references to statements made on a Fox program hosted by Jeanine Pirro, along with one statement made by Fox host Jesse Watters.
"This is the first in a series of steps we are taking to defend our company against baseless attacks that are intended to damage our reputation as a means to undermine confidence in election outcomes," Smartmatic CEO Antonio Mugica said in a statement to CNBC.
"We stand to lose billions of dollars in business in the coming years because of these baseless attacks on our company," Mugica's statement said.
Smartmatic's counsel will also be sending letters to Giuliani and Powell, according to a Frequently Asked Questions page that a company spokeswoman said will soon be published on its website.


cnbc--2020-12-14--In-person early voting begins in Georgia for crucial Senate runoff elections

Voters line up for the first day of early voting outside of the High Museum polling station on December 14 , 2020 in Atlanta , Georgia .
Georgians are headed to the polls to vote in a run off election for two U.S. Senate seats .
In-person early voting began Monday in Georgia for the crucial Jan. 5 special election that will decide control of the Senate .
Polling locations opened Monday morning as more than 1.2 million Georgians had already requested absentee ballots and more than 200,000 voters had returned their mail ballots , according to data compiled by @ @ @ @ @ @ @ approaching holidays and a compressed election timeline , the in-person early voting period will be key for campaigns hoping to turn out voters .
In-person early votes made up more than half of the nearly 5 million ballots cast in the Nov. 3 general election , a record-high total for the state .
Runoff elections typically see a drop in voter participation compared with general elections , but the high stakes of the January races are expected to prompt a fierce battle at the ballot box .
Republican Sens .
David Perdue and @ @ @ @ @ @ @ Jon Ossoff and Raphael Warnock , respectively .
Georgia election rules mandated the runoff races when no candidate exceeded 50 % of voter share in either race during the Nov. 3 general election .
As of now , Republicans will hold a 50-48 majority in the Senate come January .
If Democrats win both Georgia races , Vice President-elect Kamala Harris would be the tiebreaking vote , giving the party unified control of the White House and Congress .
If Republicans keep just one seat , the GOP retains control of the Senate @ @ @ @ @ @ @ ever , '' Warnock said following a drive-in rally in Warner Robbins on Sunday .
`` And so we need everybody to turn out and vote . ''
`` Everything 's at stake in this election , '' Loeffler said after an event at the Houston County GOP offices Sunday .
`` It 's the future of the country . ''
Georgia has not elected a Democratic senator since 1996 , and Democrats have not won a statewide runoff election in Georgia since 1988 .
But Democrats are hoping the diverse coalition that @ @ @ @ @ @ @ also propel their Senate candidates to victory .
The first day of in-person early voting coincides with the meeting of the Electoral College , as Georgia electors record their votes for Biden , the first Democrat to win Georgia 's presidential race since 1992 .
Biden is set to travel to Atlanta on Tuesday to campaign for Ossoff and Warnock , the president-elect 's first campaign appearance since winning the November election .
Former President Barack Obama headlined a virtual rally with Ossoff and Warnock on Dec. 4 , emphasizing the importance of @ @ @ @ @ @ @ .
`` If you do n't have a majority , if the Senate is controlled by Republicans who are interested in obstruction and gridlock rather than progress and helping people , they can block just about anything , '' Obama said .
The GOP has sent several high-profile surrogates to Georgia , including President Donald Trump and Vice President Mike Pence .
Trump has made Georgia a focal point of his baseless claims that widespread voter fraud cost him the election .
The president has attacked prominent Republican leaders in Georgia such as @ @ @ @ @ @ @ State Brad Raffensperger for refusing to overturn the election results even as two full recounts reaffirmed Biden 's victory .
`` What a fool Governor @ BrianKempGA of Georgia is .
Could have been so easy , but now we have to do it the hard way , '' Trump said on Twitter early Monday morning .
`` Demand this clown call a Special Session and open up signature verification , NOW .
Otherwise , could be a bad day for two GREAT Senators on January 5th . ''
The president 's repeated @ @ @ @ @ @ @ effects on efforts to mobilize Republican voters for the Jan. 5 runoffs .
Meanwhile , Democrats are focused on turning out new voters , including eligible Georgians who were not old enough to vote in the November election but will turn 18 by Jan. 5 .
Nearly 90,000 mail ballots have been requested by residents who did not vote in the general election , according to U.S .
Elections Project data .
`` These are people who did not vote in the general election , '' former Democratic Georgia gubernatorial candidate and voting @ @ @ @ @ @ @ 11Alive Sunday .
`` That means there 's enthusiasm , but there 's also a hunger for action . ''

Voters line up for the first day of early voting outside of the High Museum polling station on December 14, 2020 in Atlanta, Georgia. Georgians are headed to the polls to vote in a run off election for two U.S. Senate seats.
In-person early voting began Monday in Georgia for the crucial Jan. 5 special election that will decide control of the Senate.
Polling locations opened Monday morning as more than 1.2 million Georgians had already requested absentee ballots and more than 200,000 voters had returned their mail ballots, according to data compiled by the U.S. Elections Project.
With approaching holidays and a compressed election timeline, the in-person early voting period will be key for campaigns hoping to turn out voters.
In-person early votes made up more than half of the nearly 5 million ballots cast in the Nov. 3 general election, a record-high total for the state.
Runoff elections typically see a drop in voter participation compared with general elections, but the high stakes of the January races are expected to prompt a fierce battle at the ballot box.
Republican Sens. David Perdue and Kelly Loeffler face competitive challenges from Democrats Jon Ossoff and Raphael Warnock, respectively. Georgia election rules mandated the runoff races when no candidate exceeded 50% of voter share in either race during the Nov. 3 general election.
As of now, Republicans will hold a 50-48 majority in the Senate come January. If Democrats win both Georgia races, Vice President-elect Kamala Harris would be the tiebreaking vote, giving the party unified control of the White House and Congress. If Republicans keep just one seat, the GOP retains control of the Senate.
"It is as urgent as ever," Warnock said following a drive-in rally in Warner Robbins on Sunday. "And so we need everybody to turn out and vote."
"Everything's at stake in this election," Loeffler said after an event at the Houston County GOP offices Sunday. "It's the future of the country."
Georgia has not elected a Democratic senator since 1996, and Democrats have not won a statewide runoff election in Georgia since 1988. But Democrats are hoping the diverse coalition that helped elect Joe Biden as president could also propel their Senate candidates to victory.
The first day of in-person early voting coincides with the meeting of the Electoral College, as Georgia electors record their votes for Biden, the first Democrat to win Georgia's presidential race since 1992.
Biden is set to travel to Atlanta on Tuesday to campaign for Ossoff and Warnock, the president-elect's first campaign appearance since winning the November election.
Former President Barack Obama headlined a virtual rally with Ossoff and Warnock on Dec. 4, emphasizing the importance of the runoffs for Biden's domestic agenda.
"If you don't have a majority, if the Senate is controlled by Republicans who are interested in obstruction and gridlock rather than progress and helping people, they can block just about anything," Obama said.
The GOP has sent several high-profile surrogates to Georgia, including President Donald Trump and Vice President Mike Pence.
Trump has made Georgia a focal point of his baseless claims that widespread voter fraud cost him the election. The president has attacked prominent Republican leaders in Georgia such as Gov. Brian Kemp and Secretary of State Brad Raffensperger for refusing to overturn the election results even as two full recounts reaffirmed Biden's victory.
"What a fool Governor @BrianKempGA of Georgia is. Could have been so easy, but now we have to do it the hard way," Trump said on Twitter early Monday morning. "Demand this clown call a Special Session and open up signature verification, NOW. Otherwise, could be a bad day for two GREAT Senators on January 5th."
The president's repeated attacks on election integrity could have undermining effects on efforts to mobilize Republican voters for the Jan. 5 runoffs.
Meanwhile, Democrats are focused on turning out new voters, including eligible Georgians who were not old enough to vote in the November election but will turn 18 by Jan. 5. Nearly 90,000 mail ballots have been requested by residents who did not vote in the general election, according to U.S. Elections Project data.
"These are people who did not vote in the general election," former Democratic Georgia gubernatorial candidate and voting rights activist Stacey Abrams told NBC affiliate 11Alive Sunday. "That means there's enthusiasm, but there's also a hunger for action."


cnbc--2020-12-13--Former Cuomo staffer accuses NY governor of sexually harassing her for years — he denies it

New York Governor Andrew Cuomo speaks at a daily briefing during the outbreak of the coronavirus disease ( COVID-19 ) at the State Capitol in Albany , New York , April 29 , 2020 .
WASHINGTON – A former staffer for New York Gov .
Andrew Cuomo said Sunday that he sexually harassed her for years .
The explosive allegation comes as President-elect Joe Biden is reportedly considering Cuomo to run the Department of Justice .
Lindsey Boylan , a former New York government official who is running for the Manhattan Borough presidency , outlined the allegations in a series @ @ @ @ @ @ @ tweet , Boylan wrote : `` I hate that some men , like @ NYGovCuomo abuse their power . ''
Boylan also wrote on Sunday that she was not interested in discussing the matter with journalists .
She did not immediately respond to CNBC 's request for comment .
Cuomo 's press secretary Caitlin Girouard said , `` There is simply no truth to these claims , '' according to a statement provided to the Associated Press .
Boylan served in the Cuomo administration from 2015 until 2018 as executive vice president at @ @ @ @ @ @ @ special advisor to the governor .
On Friday , the Associated Press reported that Cuomo was among several contenders under consideration by Biden for attorney general .
Alabama Sen. Doug Jones , federal appeals court Judge Merrick Garland and former Deputy Attorney General Sally Yates are also under consideration for the role , the AP reports .
Boylan responded to the story in a tweet Friday writing , `` This is deeply disturbing .
That men like this get this far and harm so many people , so many women . ''
In @ @ @ @ @ @ @ wrote : `` There are fewer things more scary than giving this man , who exists without ethics , even more control . ''
`` I saw how he wielded power for years .
He takes advantage of people , including me , '' she added .
Earlier this month , Boylan wrote on Twitter that Cuomo ran a toxic team environment and that she tried to quit his staff three times .
`` If people were n't deathly afraid of him , they 'd be saying the same thing and you 'd @ @ @ @ @ @ @ wrote in another tweet .
`` That environment is beyond toxic .
I 'm still unwrapping it years later in therapy ! ''
Boylan added in another tweet .

New York Governor Andrew Cuomo speaks at a daily briefing during the outbreak of the coronavirus disease (COVID-19) at the State Capitol in Albany, New York, April 29, 2020.
WASHINGTON – A former staffer for New York Gov. Andrew Cuomo said Sunday that he sexually harassed her for years.
The explosive allegation comes as President-elect Joe Biden is reportedly considering Cuomo to run the Department of Justice.
Lindsey Boylan, a former New York government official who is running for the Manhattan Borough presidency, outlined the allegations in a series of tweets on Sunday.
In another tweet, Boylan wrote: "I hate that some men, like @NYGovCuomo abuse their power."
Boylan also wrote on Sunday that she was not interested in discussing the matter with journalists. She did not immediately respond to CNBC's request for comment.
Cuomo's press secretary Caitlin Girouard said, "There is simply no truth to these claims," according to a statement provided to the Associated Press.
Boylan served in the Cuomo administration from 2015 until 2018 as executive vice president at Empire State Development and then as a special advisor to the governor.
On Friday, the Associated Press reported that Cuomo was among several contenders under consideration by Biden for attorney general. Alabama Sen. Doug Jones, federal appeals court Judge Merrick Garland and former Deputy Attorney General Sally Yates are also under consideration for the role, the AP reports.
Boylan responded to the story in a tweet Friday writing, "This is deeply disturbing. That men like this get this far and harm so many people, so many women."
In a subsequent tweet on Saturday, Boylan wrote: "There are fewer things more scary than giving this man, who exists without ethics, even more control."
"I saw how he wielded power for years. He takes advantage of people, including me," she added.
Earlier this month, Boylan wrote on Twitter that Cuomo ran a toxic team environment and that she tried to quit his staff three times.
"If people weren't deathly afraid of him, they'd be saying the same thing and you'd already know the stories," she wrote in another tweet.
"That environment is beyond toxic. I'm still unwrapping it years later in therapy!" Boylan added in another tweet.


cnbc--2020-12-14--Op-Ed: No, Sen. Rubio – the PPP didn't do enough to help restaurants

I am proud that my own senator , Marco Rubio , worked quickly to assemble a relief program at the beginning of the pandemic to address the economic catastrophe facing our country .
The swift action he and other members of Congress took with the Paycheck Protection Program helped to stabilize our economic free fall in the face of immense uncertainty .
However , as a restaurant owner in Florida and Ohio , I must disagree with the senator 's claim that PPP was a `` life raft '' for all industries .
Since I took a PPP loan earlier @ @ @ @ @ @ @ to rehire my full staff because my restaurants in Florida are only generating 25 % to 50 % less revenue than 2019 , and my business in Cleveland is earning a whopping 80 % less and surviving only by the good graces of a benevolent landlord .
In total , my company will finish the year with less than half the sales it had in 2019 .
Another 10 weeks of payroll simply wo n't come close to making up for the carnage that has befallen my company and my industry .
It @ @ @ @ @ @ @ raft , and while we are doggy paddling as hard as we can , it does n't seem like there 's anything on the horizon to save us right now .
Take a drive around your own neighborhood and look at the growing number of `` for lease '' signs replacing laughter , music , and hot food along sidewalk windows .
In a survey conducted in April , when restaurant owners were still optimistic about the prospects of PPP loans , up to 85 % of restaurant owners reported they were not @ @ @ @ @ @ @ the pandemic lasted six months .
The pandemic has now lasted 10 months , and more than one in six restaurants across the country , or 110,000 , have closed as a result .
Up to a third may close by the end of December .
The issue is not that the PPP is fatally flawed .
It 's a one-size-fits-all solution that does n't account for the creativity , diversity , and resourcefulness of America 's businesses .
In the best of times , restaurants and bars operate on very narrow profit @ @ @ @ @ @ @ are now , those profits are all gone and now we are just desperately trying to limit the losses .
Serious losses .
Today , we are one of the only industries required by law to shut down in cities and states across the country .
And even where we are not shut down , curfews and capacity constraints cut into our valuable dinner sales dramatically .
Month after month of dramatically reduced revenue means restaurant owners have piled up bills of unpaid rent , utilities and debt service , sunk cost on @ @ @ @ @ @ @ savings they had paying for employee 's salaries and benefits .
We should n't have to choose between using the 10 weeks of payroll given to us through PPP to pay our employees – who deserve and need a wage – or paying the bills we need to keep them employed another 10 months from now .
Ten weeks of payroll does not make up for 36 weeks of losses we 've already sustained through no fault of our own .
When I received my PPP loan in May , I struggled with @ @ @ @ @ @ @ I most desperately needed to cover were not eligible for forgiveness .
The PPP is designed to primarily help with payroll expenses .
WhileI was thrilled to start hiring my employees back , those loans ca n't be applied to vital costs like supplies , operating expenses ( insurance , maintenance , cleaning , landscaping etc ) , food costs , and PPE .
All of these are major costs for restaurants who are being asked to reopen , close , and reopen again with very little notice .
This creates a massive @ @ @ @ @ @ @ have all done our best to limit the damage .
We have been creative and resourceful .
Restaurants simply do not have the flexibility to address these stark deficits .
How many businesses could survive an 80 % drop in their sales for an extended period ?
Today , 2.1 million people from the restaurant industry remain jobless after Rubio 's `` emergency brake '' was supposed to stop people from leaving the workforce – that 's more unemployed workers than from any other single industry .
Restaurants can not rehire our employees @ @ @ @ @ @ @ again .
When operating at less than 100 % of our normal revenue , roles like cooks , servers , hosts , dishwashers , and janitors are difficult to keep employed even with outdoor dining and a takeout program .
They are among the 11 million jobs in restaurants across the country that have been put at risk as a result of this pandemic .
PPP was also inaccessible to many neighborhood restaurants across the country .
In the second quarter of this year , restaurants lost over $ 220 billion in revenue @ @ @ @ @ @ @ in PPP loans , or 8 % of all loans awarded .
Restaurants and accommodations ranked fifth among industries in loans awarded despite being the top contributor to national unemployment month after month .
Why ?
Smaller businesses simply do n't have the same relationships to banks that larger businesses have .
Because PPP loans are coordinated through banks – with many banks even opting not to participate in the program – it was clear from the beginning that this program would not be easily accessible to the smallest and most vulnerable businesses @ @ @ @ @ @ @ themselves for the first time in the spring , launching the Independent Restaurant Coalition and creating a plan that specifically addressed the needs of these 500,000 locally owned businesses .
Over 50 senators and 215 members of the House from both parties have listened .
The bipartisan RESTAURANTS Act they support would set aside $ 120 Billion for a program run by the Treasury , not banks , that would award grants – not loans – to businesses based on lost revenues and not payroll .
It would help my business and tens @ @ @ @ @ @ @ RESTAURANTS Act would create up to $ 271 billion in economic benefits in its boost to tourism , support for supply chain industries , and savings on unemployment benefits that would otherwise go to millions of displaced restaurant workers .
Our government represents us and it has rightly said to be careful about Covid-19 for the sake of our own health and for the greater good .
One of the primary ways to be careful seems to be avoiding going to eat in restaurants .
We hear it time and time again .
@ @ @ @ @ @ @ industry have absolutely and willingly supported the efforts our country has made to stem the tide of this awful virus .
And we will continue to do so .
But for many of us to still be here on the other side of this , restaurants need something tailored to their needs to make it to the light at the end of this long tunnel .
Congress should listen when restaurants and bars – America 's second largest private sector employer – are sounding the alarm .
Let 's work together to make @ @ @ @ @ @ @ for all businesses , not just ones with large bank accounts .
Otherwise , when the vaccine has taken hold and we are all ready to go out to eat , drink and be merry again , there simply wo n't be many places left to do that .
Sunil Bhatt , is the CEO of Genuine Hospitality Group , which operates six award-winning restaurants in Miami and Cleveland .
He is a member of the Independent Restaurant Coalition .

I am proud that my own senator, Marco Rubio, worked quickly to assemble a relief program at the beginning of the pandemic to address the economic catastrophe facing our country. The swift action he and other members of Congress took with the Paycheck Protection Program helped to stabilize our economic free fall in the face of immense uncertainty.
However, as a restaurant owner in Florida and Ohio, I must disagree with the senator's claim that PPP was a "life raft" for all industries.
Since I took a PPP loan earlier this year, I've been unable to rehire my full staff because my restaurants in Florida are only generating 25% to 50% less revenue than 2019, and my business in Cleveland is earning a whopping 80% less and surviving only by the good graces of a benevolent landlord. In total, my company will finish the year with less than half the sales it had in 2019.
Another 10 weeks of payroll simply won't come close to making up for the carnage that has befallen my company and my industry. It's a life jacket, not a raft, and while we are doggy paddling as hard as we can, it doesn't seem like there's anything on the horizon to save us right now.
Take a drive around your own neighborhood and look at the growing number of "for lease" signs replacing laughter, music, and hot food along sidewalk windows. In a survey conducted in April, when restaurant owners were still optimistic about the prospects of PPP loans, up to 85% of restaurant owners reported they were not confident they could stay in business if the pandemic lasted six months. The pandemic has now lasted 10 months, and more than one in six restaurants across the country, or 110,000, have closed as a result. Up to a third may close by the end of December.
The issue is not that the PPP is fatally flawed. It's a one-size-fits-all solution that doesn't account for the creativity, diversity, and resourcefulness of America's businesses.
In the best of times, restaurants and bars operate on very narrow profit margins. With sales the way they are now, those profits are all gone and now we are just desperately trying to limit the losses. Serious losses. Today, we are one of the only industries required by law to shut down in cities and states across the country.
And even where we are not shut down, curfews and capacity constraints cut into our valuable dinner sales dramatically. Month after month of dramatically reduced revenue means restaurant owners have piled up bills of unpaid rent, utilities and debt service, sunk cost on food supplies, and have exhausted whatever savings they had paying for employee's salaries and benefits.
We shouldn't have to choose between using the 10 weeks of payroll given to us through PPP to pay our employees – who deserve and need a wage – or paying the bills we need to keep them employed another 10 months from now. Ten weeks of payroll does not make up for 36 weeks of losses we've already sustained through no fault of our own.
When I received my PPP loan in May, I struggled with the fact that many of the expenses I most desperately needed to cover were not eligible for forgiveness. The PPP is designed to primarily help with payroll expenses. WhileI was thrilled to start hiring my employees back, those loans can't be applied to vital costs like supplies, operating expenses (insurance, maintenance, cleaning, landscaping etc), food costs, and PPE. All of these are major costs for restaurants who are being asked to reopen, close, and reopen again with very little notice. This creates a massive gap in our thin budgets.
We have all done our best to limit the damage. We have been creative and resourceful. Restaurants simply do not have the flexibility to address these stark deficits. How many businesses could survive an 80% drop in their sales for an extended period?
Today, 2.1 million people from the restaurant industry remain jobless after Rubio's "emergency brake" was supposed to stop people from leaving the workforce – that's more unemployed workers than from any other single industry.
Restaurants cannot rehire our employees until we can fill our dining rooms again. When operating at less than 100% of our normal revenue, roles like cooks, servers, hosts, dishwashers, and janitors are difficult to keep employed even with outdoor dining and a takeout program. They are among the 11 million jobs in restaurants across the country that have been put at risk as a result of this pandemic.
PPP was also inaccessible to many neighborhood restaurants across the country. In the second quarter of this year, restaurants lost over $220 billion in revenue but received less than $42 billion in PPP loans, or 8% of all loans awarded. Restaurants and accommodations ranked fifth among industries in loans awarded despite being the top contributor to national unemployment month after month.
Why? Smaller businesses simply don't have the same relationships to banks that larger businesses have. Because PPP loans are coordinated through banks – with many banks even opting not to participate in the program – it was clear from the beginning that this program would not be easily accessible to the smallest and most vulnerable businesses in our industry.
Independent restaurants organized themselves for the first time in the spring, launching the Independent Restaurant Coalition and creating a plan that specifically addressed the needs of these 500,000 locally owned businesses. Over 50 senators and 215 members of the House from both parties have listened. The bipartisan RESTAURANTS Act they support would set aside $120 Billion for a program run by the Treasury, not banks, that would award grants – not loans – to businesses based on lost revenues and not payroll.
It would help my business and tens of thousands of others survive. The RESTAURANTS Act would create up to $271 billion in economic benefits in its boost to tourism, support for supply chain industries, and savings on unemployment benefits that would otherwise go to millions of displaced restaurant workers.
Our government represents us and it has rightly said to be careful about Covid-19 for the sake of our own health and for the greater good. One of the primary ways to be careful seems to be avoiding going to eat in restaurants. We hear it time and time again. Avoid us. We in the restaurant industry have absolutely and willingly supported the efforts our country has made to stem the tide of this awful virus. And we will continue to do so.
But for many of us to still be here on the other side of this, restaurants need something tailored to their needs to make it to the light at the end of this long tunnel. Congress should listen when restaurants and bars – America's second largest private sector employer – are sounding the alarm.
Let's work together to make the PPP program a viable economic engine for all businesses, not just ones with large bank accounts. Otherwise, when the vaccine has taken hold and we are all ready to go out to eat, drink and be merry again, there simply won't be many places left to do that.
Sunil Bhatt, is the CEO of Genuine Hospitality Group, which operates six award-winning restaurants in Miami and Cleveland. He is a member of the Independent Restaurant Coalition.