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U.S. Postal Service Begs for Funding, Warns It Could Run Out of Money by End of September

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  • The U.S. Postal Service is asking lawmakers for $89 billion to help keep it afloat, warning that it could run out of operational funds by the end of September.
  • The coronavirus pandemic led to a drastic 30% decline in mail volume last week, with the service estimating a 50% drop by the end of the third quarter. 
  • Still, postal employees have continued to deliver essentials like prescriptions, mail-in ballots, medical supplies, and more all over the country and Democrats warn that without them, many could lose access to necessary goods. 
  • Lawmakers have been battling to agree on relief deals, with some believing conservatives and the Trump administration are using the pandemic to force the mail service towards privatization. 

Post Office Sees Drastic Mail Decline 

The U.S. Postal Service is begging lawmakers for $89 billion to help to keep it from crumbling, saying it could run out of operational funds by the end of September if it doesn’t receive financial assistance. 

In a video conference Thursday with members of the House Committee on Oversight and Reform, Postmaster General Megan Brennan told lawmakers that the USPS believes it will see a “$13 billion revenue loss” this year due to the coronavirus pandemic. Their projections say the virus could cost the agency another $54 billion over the next decade.

The U.S. Postal Service has faced financial struggles for some time now, but the pandemic has added new strain that quickly escalated problems. Mail volume has drastically declined in recent weeks as businesses all over the world close their doors, pause their services, and cut back on advertisements. 

The mail volume had dropped by 5.3% four weeks ago, according to Rep. Gerry Connolly, a Virginia Democrat and the chairman of the oversight subcommittee that oversees the USPS. Last week, it saw a 30% decline and the post office estimates that it could see as much as a 50% drop in the third quarter of this year. 

Package volume has increased, however, packages only make up less than 30% of total revenue for the agency.

But even with the declining volume of mail, postal workers have remained on the front line of the crisis, delivering essential goods like medical supplies, prescriptions, lab test materials, mail-in ballots, paperwork for unemployment claims, and other crucial items. Like medical professionals, grocery store employees, and countless other essential workers, they too are struggling with low stocks of protective gear as they work to deliver these items amid the pandemic.

Unlike other private mail carriers, the U.S. Postal Service is required to deliver goods all over the country, including in rural areas where profit margins are smaller. Without its services, Democrats warn that vulnerable populations would lose their access to necessary items. 

USPS Asks For Help 

The Postal Service is asking Congress for the $89 billion to help keep it running.

According to House Democrats, the USPS is asking for $25 billion in federal grants to cover lost revenue from the pandemic, $25 billion in “unrestricted borrowing authority from Treasury,” and another $25 billion to help modernize its aging infrastructure. It is also requesting $14 billion needed to pay off debt related to a retirement benefits program. 

“At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business,” Brennan told The New York Times Thursday. “The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover.”

Lawmakers Battle Over How to Help

The battle between Republicans and Democrats over funding for the mail system has been fierce and efforts to give the agency money in the $2.2 trillion stimulus package failed.

As far as President Donald Trump’s stance on the issue, he argued that the agency could fix its economic problems by raising prices of packages delivered by big online retailers like Amazon. 

“They have to raise the prices to these companies that walk in and drop thousands of packages on the floor of the Post Office and say, ‘Deliver it,’” Trump said at a press briefing this week. “And if they’d raise the prices by actually a lot, then you’d find out that the Post Office could make money or break even. But they don’t do that. And I’m trying to figure out why.”

According to CNN, sources told the network that the Trump administration rejected any direct funding for the USPS when Democrats tried to include $25 billion for the agency during discussions. Instead, the USPS was promised it could apply for $10 billion in loans with the Treasury Department. The problem there is that loans come with strings attached that Democrats say add more burdens to the struggling agency. 

Some lawmakers, postal union workers, and others who rely on the agency fear that the Trump administration is using the crisis to try and achieve conservative’s long-running goal of pushing the mail service towards privatization.  Many believe that the administration is trying to do this by forcing the service into tough loan terms or into bankruptcy, which would help commercial competitors like UPS and FedEx.   

Democrats have been increasingly vocal about assisting the post office in recent days, drawing in support with the hashtag #SaveThePostOffice which was trending Friday.

“As Congress and the Administration take steps to support businesses and industries around the country, it is imperative that they also take action to shore up the finances of the Postal Service, and enable us to continue to fulfill our indispensable role during the pandemic, and to play an effective role in the nation’s economic recovery,” Brennan said in a statement.

“We are at a critical juncture in the life of the Postal Service,” she added. “At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business.”

See what others are saying: (CNN) (The New York Times) (Fox News

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Donald Trump and Eldest Three Children Hit With Fraud Lawsuit From New York AG

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AG Letitia James says that the former president “falsely inflated his net worth by billions of dollars to unjustly enrich himself.” 


Lawsuit Filed Against Trump 

New York Attorney General Letitia James announced on Wednesday that she filed a civil lawsuit against former president Donald Trump and his three eldest children over allegations that they fraudulently inflated asset valuations within the Trump Organization.

Donald Trump Jr., Eric Trump, and Ivanka Trump are all listed alongside their father in the lawsuit. Executives Jeffrey McConney and Allen Weisselberg, the latter of whom recently pled guilty to tax crimes, are also listed alongside other Trump businesses. 

“Donald Trump, with the help of his children…and senior executives at the Trump Organization, falsely inflated his net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to satisfy continuing loan covenants, to induce insurers to provide insurance coverage for higher limits and at lower premiums, and to gain tax benefits, among other things,”  a press release announcing the lawsuit claimed. 

The Attorney General’s office claims that between 2011 and 2021, Trump and the Trump Organization made 200 false and misleading claims about asset values on annual financial statements.

The lawsuit was filed Wednesday in a State Supreme Court in Manhattan. 

“The complaint demonstrates that Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and to cheat the system, thereby cheating all of us,” James said while announcing the complaint. 

Her office is seeking to permanently ban Trump and his children from serving as an officer or director in any New York corporation and to bar Trump and his organization from entering into any New York real estate acquisitions for five years. The office is also seeking to recover $250 million in penalty payments, among other forms of relief. 

 The Office of the Attorney General has also referred the matter to the federal attorneys in New York and to the IRS for criminal investigation. 

“There aren’t two sets of laws for people in this nation: former presidents must be held to the same standards as everyday Americans,” James added in a statement on social media. 

“Trump’s crimes are not victimless,” she continued. “When the well-connected and powerful break the law to get more money than they are entitled to, it reduces resources available to working people, small businesses, and taxpayers.”

Trump Allegedly Inflated Key Assets

According to James’ release, Trump “made known through Mr. Weisselberg that he wanted his net worth on his statements to increase every year.”

“And the statements were the vehicle by which his net worth was fraudulently inflated by billions of dollars year after year,” the release continued. 

Among the assets Trump and his organization allegedly inflated was the Trump Tower Triplex, an apartment Trump allegedly claimed was 30,000 square feet when it is just around 11,000 square feet. Because of its ballooned size, the property was valued at $327 million in 2015, roughly three times as much as the sole apartment in New York City to ever sell for over $100 million at the time. 

For further comparison, the highest sale for a listing in Trump Tower at the time was only $16 million. 

Trump also allegedly claimed Mar-a-Lago was valued as high as $739 million based on the “false premise” that the property could be developed and sold for residential use. The lawsuit claims that Trump actually signed deeds donating those rights, limiting the property’s use to a social club. James and her office claim its value would fall closer to $75 million. 

Inflated Clauations Cannot Be “Excused”

“The inflated asset valuations in the Statements cannot be brushed aside or excused as merely the result of exaggeration or good faith estimation about which reasonable real estate professionals may differ,”  the lawsuit states, adding that instead, they are the result of improper methodology intentionally meant to falsely boost Trump’s net worth. 

The investigation into Trump’s alleged fraud began nearly three years ago, and the former president has repeatedly called it a politically motivated witch hunt. His attorney, Alina Habba, doubled down on that rhetoric in a statement Wednesday. 

“Today’s filing is neither focused on the facts nor the law – rather, it is solely focused on advancing the Attorney General’s political agenda,” Habba said. “We are confident that our judicial system will not stand for this unchecked abuse of authority, and we look forward to defending our client against each and every one of the Attorney General’s meritless claims.”

For his part, Trump has blasted the lawsuit on Truth Social, calling James a “fraud” and a “crime-fighting disaster.”

Trump previously tried to impede the probe but was ultimately ordered by a judge to sit for a deposition and turn over subpoenaed documents. Reports say he pled the fifth hundreds of times during his deposition. 

See what others are saying: (Bloomberg) (The Washington Post) (Reuters)

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Hurricane Fiona Causes “Catastrophic” Damage in Puerto Rico, Leaving Many Without Power

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While power has been restored to some, more than a million remain without it as continued rainfall, flooding, and landslides are expected to cause further damage across the island.


Hurricane Fiona Wreaks Havoc

Hurricane Fiona made landfall in Puerto Rico Sunday, bringing heavy rains, flooding, and landslides, while also knocking out power for the entire island and killing at least one person.

Photos and videos posted on social media show floodwaters consuming major streets and engulfing cars. Some pictures show an entire bridge flooded, making it impassible. Other footage shows a different bridge entirely uprooted and a metal barrier ripped away from the road and floating down a river of floodwater.

Officials have said conditions are still too dangerous to fully evaluate the extent of the crisis. In remarks to the public, Puerto Rico’s governor, Pedro Pierluisi, described the damage as “catastrophic.”

He asserted that the storm has been one of the most significant since Hurricane Maria — which hit the island almost exactly 5 years ago to the day — killing more than 3,000 people, leaving many without power for months, and causing destruction that the island is still recovering from.

Pierluisi noted that Puerto Rico has received over 30 inches of rain and that some areas have even gotten more rain than during Hurricane Maria. As of Monday afternoon, the National Gaurd has led 30 rescue operations so far, saving more than 1,000 stranded residents in 25 municipalities, according to the governor.

Pierluisi also added that more than 2,000 people were in the island’s 128 shelters, with officials further saying there is plenty of shelter space for those who need it. On Sunday, President Joe Biden approved an emergency declaration for Puerto Rico, which will allow federal agencies to coordinate disaster relief.

Continued Issues As Storm Rages On

Meanwhile, Puerto Rico’s water authority has confirmed that just over 70% of the island is still without water. According to poweroutage.us, more than 1.3 million customers were still without power as of Monday morning.

The power company LUMA also stated that electricity had been restored to around 100,000 customers over the course of Sunday night, though it previously warned that the full restoration of power could take several days as the storm has created “incredibly challenging” conditions.

While Hurricane Fiona has passed through Puerto Rico, having now made landfall in the Dominican Republic, officials and experts say that heavy rains and further flooding are still to be expected for the next few days.

The National Weather Service has warned that “life-threatening and catastrophic flooding” as well as mudslides and landslides are expected to continue across the island. As a result, Pierluisi has urged Puerto Ricans Monday to remain home and in shelters so that officials can continue to respond to others in need.

He also noted that the areas most impacted by the hurricane include the southern part of the island, the southwest, and the mountains.

After moving through the Dominican Republic, Hurricane Fiona is expected to head towards Turks and Caicos Tuesday. The National Hurricane Center has said that the storm will continue to grow and by Wednesday, it is set to become a major hurricane — which means a Category 3 or higher.

See what others are saying: (The New York Times) (The Washington Post) (CNN

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Government Aid Cut Child Poverty in Half During Pandemic, Data Shows

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The reduction occurred similarly across geography, race, family type, and citizenship status.


Largest Drop in Half a Century

The United States’s child poverty rate sank to the lowest level on record last year, primarily thanks to pandemic relief measures and other government programs, according to an analysis of census data released Tuesday.

The Center on Budget and Policy Priorities analyzed data from the Census Bureau’s supplementary poverty measure, which accounts for safety net programs and tax credits as well as regional differences in the cost of living.

From around 11% in 2019, the percentage of kids living below the poverty line fell to 9.7% in 2020 and 5.2% the year after that.

In just two years, nearly 5.5 million kids were lifted from poverty, marking an almost 60% drop in the child poverty rate.

The Center’s researchers gave most credit to the federal government’s numerous interventions in the economy, from stimulus payments and the expanded child tax credit to eviction moratoriums and expanded unemployment insurance.

Without government intervention, poverty in 2020 would have experienced its second-largest recorded increase, the Center claimed, but instead, it underwent the largest single-year decline in over half a century.

Especially impactful was the expanded child tax credit, which sent up to $300 per child to households with children every month between July and December 2021.

According to the analysis, this policy alone pulled nearly three million kids out of poverty.

But the tax credit’s expansion expired at the end of the year despite Democrats’ efforts to prolong it with Biden’s signature Build Back Better bill, which was blocked by Sen. Joe Manchin (D-WV), who reportedly told colleagues he was concerned that families might use the payments to buy drugs.

Poverty Before COVID

Child poverty has fallen by 59% since 1993, when it sat at around 28%, according to another analysis published Sunday by The New York Times and the nonpartisan group Child Trends.

They found that the decline occurred across all 50 states and D.C., as well as in different levels of poverty.

It similarly affected nearly all subgroups of children, — white, Black, Asian and Hispanic, single-parent and two-parent, immigrant and non-immigrant.

The causes driving the pre-pandemic decline included general economic improvement — low unemployment, a higher labor force participation rate among single mothers, and growing state minimum wages — but the researchers pinned government welfare programs as the dominant factor.

They specifically mentioned the earned income tax credit, social security, unemployment insurance, and nutrition and housing assistance.

Despite the positive trend, more than eight million children still live below the poverty line, and that number excludes those who live just above it but still struggle to meet basic needs.

The current poverty line sits around $29,000 for a family of four in a location with typical living costs.

Moreover, disparities still persist, with Black and Latino children about three times as likely as their white peers to be poor.

See what others are saying: (Vox) (The New York Times) (The Washington Post)

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