Skip to content
Search

Latest Stories

Follow Us:
Top Stories

Big transparency win in stimulus package undercut by Trump administration

Treasury Secretary Steven Mnuchin discusses oversight of the stimulus fund dispersal.

Open government advocates and Democratic leaders in Congress are angry the Trump administration seems to be walking away from crucial transparency language in the economic stabilization package.

Aside from the funds to make voting safer and more convenient this fall, the democracy reform movement was pleased most by a provision in the law creating an independent watchdog to oversee a $500 billion fund to bail out companies crippled by the coronavirus pandemic.

But after signing the $2 trillion package last week, President Trump signaled he would decide what this inspector general could share with the public and Congress. And when Treasury Secretary Steven Mnuchin sought Sunday to dispel concerns about government accountability in administering the biggest domestic economic relief package in American history, he refused to pledge that the IG would be permitted to testify on Capitol Hill.


"I'm going to leave that to the lawyers, OK, and to Congress to figure out," Mnuchin said on Fox News. "We're going to have full transparency in reporting what we're doing to the American public."

Creation of the IG was a safeguard that Democrats insisted upon as a condition of supporting the corporate bailout fund at the heart of the rescue package.

The law allows the president and Treasury secretary to approve loans, loan guarantees and other aid to American companies, but with a watchdog nominated by Trump and confirmed by the Senate to oversee and audit the disbursements. Under the law, this IG has the power to demand information from the Treasury Department and other federal agencies — and is supposed to tell Congress "without delay" if any part of the executive branch is uncooperative.

Two hours after signing the bill Friday, Trump issued a separate statement that he "will not treat" that language as permitting the inspector general to report to Congress without "presidential supervision."

That declaration only buttressed the argument by Democrats and open government advocacy groups, who pressed for tough language in the measure precisely because the president has such a strong history of rebuffing efforts at congressional oversight, especially when it comes to executive branch officials seeking to reveal perceived misbehavior. (Trump's impeachment, after all, got started with a whistleblower complaint about the withholding of military aid from Ukraine for an inappropriately political reason.)

"We don't accept that. We don't accept that. We will have our oversight," Speaker Nancy Pelosi said Sunday. "It's just the same, business as usual for the president."

On Monday the nonpartisan Project on Government Oversight called the administration's moves "a slap in the face" that "signals that the administration is more committed to advancing executive branch power grabs than they are to ensuring the emergency funds go where they are needed most."

The signing statement also challenged, on constitutional separation of powers grounds, the law's requirement that Congress be consulted about the membership of a panel to be formed in the executive branch to oversee the government's pandemic response.

While such statements have no legal force, they provide a formal record of a president's understanding of a new law's meaning and serve as guidance to the rest of his administration in carrying out the statute.

Congress has no power to reverse these views through legislation, so it's unclear how lawmakers can assure the oversight they thought they'd engineered gets done. Extracting a promise from Trump's proposed IG nominee may be their best hope.

The "signing statement threatens to undermine the authority and independence of this new IG," Michael Bromwich, a former Justice Department inspector general, said on Twitter. "The Senate should extract a commitment from the nominee that Congress will be promptly notified of any Presidential / Administration interference or obstruction."

Democrats blocked the initial Senate Republican stimulus bill because of its lack of oversight language, only agreeing to the bailout fund once the IG provision was included.

Under the law, Congress is also authorized to create its own panel to oversee the use of the stimulus money and expose waste fraud and abuse, and Pelosi says that committee will be created soon and told to operate "in real time to make sure we know where those funds are."

POGO had called that language "a major victory" after getting it into the bill with the help of two senators, Wisconsin Republican Ron Johnson and Michigan Democrat Gary Peters.

"Whenever the government is trying to spend this much money, we should have good transparency and good accountability to the extent that we can," Marc Goldwein of the Committee for a Responsible Federal Budget, a nonpartisan think tank, told The Washington Post.

"We are fully comfortable that whatever we do, we want full transparency and we're very careful about supporting American workers and the American economy," Mnuchin had said on Fox.


Read More

The Trump Administration Is Losing Its Fight to Take Over Elections
Rawpixel/Getty

The Trump Administration Is Losing Its Fight to Take Over Elections

The Trump administration has expended significant resources trying to meddle in elections ahead of the midterms. This coordinated campaign includes attempts to limit who can vote, wrestle away states’ authority over elections, and undermine public confidence in election outcomes. So far, virtually everything the administration has tried has been blocked by courts, failed in Congress, or simply fizzled out.

Currently, the administration is 0–21 in its court cases seeking to amass state voter data. In dozens of states, election officials from both parties have refused to turn over their complete voter rolls, which contain confidential personal information, to the Justice Department. Federal courts from Arizona to Maine have thrown out the department’s lawsuits, ruling that the federal government lacks the power to force states to hand over this data on a mass scale.

Keep Reading Show less
 Medical Vial Vaccine on Shelf Table

Peptides like BPC-157, MOTS-c and Semax are surging in popularity despite limited human evidence. Here’s why FDA regulation, research and safety matter.

skaman306/Getty Images

Millions Using Unapproved Peptides as FDA Debates Regulation

Peptides, the short chains of amino acids that help regulate biological functions, have become the latest obsession in health, fitness, and longevity.

Online clinics and wellness influencers promote them as ways to heal injuries, reduce inflammation, improve metabolism, sharpen thinking, and slow aging.

Keep Reading Show less
Woman putting savings in a white piggy bank.

How tax cuts, deregulation and weakened unions helped shift the U.S. from the postwar Great Compression to today’s Great Divide—and examine the Gomory-Baumol corporate tax proposal as an alternative.

Guido Mieth/Getty Images

Affordability Crisis: From The Great Compression to the Great Divide

Trickle-down policies facilitated the transition from the mid-20th century "Great Compression “characterized by low-wage inequality and strong labor unions—to the "Great Divide" by shifting the economic focus from mass purchasing power to capital accumulation through massive tax cuts and deregulation.

The Great Compression

Following World War II, the United States experienced an unprecedented period of economic egalitarianism. Propelled by the G.I. Bill, the rise of powerful labor unions, and a heavily progressive tax code, the income gap between the wealthiest Americans and the working class shrank dramatically.

Keep Reading Show less
What Does the China–U.S. Trade Truce Mean for American Industry?

USA and China trade relations, cooperation strategy. US America and China flags on chess king on a chessboard.

Getty Images

What Does the China–U.S. Trade Truce Mean for American Industry?

This nonpartisan policy brief, written by an ACE fellow, is republished by The Fulcrum as part of our partnership with the Alliance for Civic Engagement and our NextGen initiative — elevating student voices, strengthening civic education, and helping readers better understand democracy and public policy.

What Happened at the May 2026 Trump-Xi Summit?

Keep Reading Show less