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Pentagon Redirected Pandemic Funds to Defense Contractors: Report

Accepted submission by Fnord666 at 2020-09-22 14:24:31
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Pentagon redirected pandemic funds to defense contractors: report [thehill.com]:

The Pentagon redirected most of its $1 billion in pandemic funding to defense contractors who exchanged the money for jet engine parts, body armor, dress uniforms and other military needs, The Washington Post reported [washingtonpost.com] on Tuesday.

[...] Congress instructed the $1 billion in the CARES Act to go to Defense Production Act (DPA) efforts, which permits President Trump [thehill.com]Donald John Trump [thehill.com]Bubba Wallace to be driver of Michael Jordan, Denny Hamlin NASCAR team [thehill.com]Graham: GOP will confirm Trump's Supreme Court nominee before the election [thehill.com]Southwest Airlines, unions call for six-month extension of government aid [thehill.com]MORE [thehill.com] to direct U.S. companies to manufacture necessary products, such as personal protective equipment (PPE).

Months after the funding was allocated, department lawyers concluded the money could be used for defense production, including projects that had little to do with responding to the pandemic, the Post reported. Smaller firms received more than a third of the funding for less than $5 million, but hundreds of millions of dollars went to several large companies.

At least 10 of the about 30 contractors awarded with DPA funding also received money from the Paycheck Protection Program, the Post found.

The Pentagon did not immediately return a request for comment from The Hill, but Ellen Lord, the undersecretary of defense for acquisition and sustainment, defended the actions in a statement to the Post.

[...] Defense industry groups said the funding was needed to keep certain contractors in business during the economic downturn caused by the pandemic.


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