Headline RoundupJanuary 3rd, 2023

How Public Employees Used COVID-19 Relief Funds for Fraud

Summary from the AllSides News Team

Over the last few months, numerous public employees across the country have been arrested for fraud involving the misuse of COVID-19 relief funds. 

The Details: Five IRS agents from Tennessee and Mississippi submitted false loan applications intended for struggling business owners, and spent the money on luxury goods. In New York, a corrections officer, eight police officers and eight other city officials also filed for $1.5 million in relief under false businesses. The Secret Service estimates that COVID-19 relief fraud could total $100 billion. 

How This Happened: Watchdog agencies investigating COVID-19 funding fraud, such as the Pandemic Response Accountability Committee, say they need more funds from legislators in order to complete their jobs effectively. They also say the large amount of aid provided makes the money difficult to track. 

How the Media Covered It: Outlets across the spectrum questioned whether COVID-19 funds are being spent responsibly in states across the country. Right-rated outlets often focused more on when funds were used for race-related policies or climate and social justice policies; left-rated sources often focused on states that used the money to build hotels, ballparks, and ski slopes.

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