REP. TED BUDD DEMANDS TRANSPARENCY OVER STIMULUS PAYMENTS TO FEDERAL PRISONERS

Press Release

Today, Rep. Ted Budd (R-NC) sent a follow-up letter to Secretary of the Treasury Janet Yellen requesting a full accounting of how many taxpayer-funded $1,400 stimulus checks were sent to individuals in federal prison as a result of the Biden administration's American Rescue Plan Act.

In July 2021, Internal Revenue Service documents revealed that, in fact, a total of 560,000 incarcerated individuals received ARPA stimulus checks, totaling $783.5 million.

Rep. Budd originally sent a letter to Treasury on January 11, 2022 specifically regarding the revelation that convicted Boston Marathon bomber Dzhokhar Tsarnaev had received a $1,400 stimulus check.

Under questioning from Rep. Budd at an April 6, 2022 House Financial Services Committee hearing, Sec. Yellen was unable to provide an updated figure of how much taxpayer money was sent to federal prisoners, saying, "I don't have that number at my fingertips."

Rep. Budd asked several questions of Sec. Yellen in the letter, including a request for an updated figure of how much taxpayer money was sent to federal prisoners.

Rep. Budd said:

"I firmly believe that taxpayer money should never be sent to individuals who are serving in federal prison for truly evil crimes like murder, terrorism, and rape. Each and every taxpayer deserves to know exactly how much money was squandered this way so that it is never allowed to happen again."

The full text of the letter is below:

Secretary Yellen:

I write to follow up on my January 11, 2022 letter to your department, as well as your testimony before the House Financial Services Committee on April 6, 2022.

In my January 11th letter, I expressed my profound concern that the U.S. Department of Treasury sent federal tax dollars to federal prisoners, including a notorious convicted murderer and terrorist.

A January 5, 2022, court filing by the acting United States Attorney for the District of Massachusetts revealed that convicted Boston Marathon Bomber Dzhokhar Tsarnaev was sent a $1,400 Economic Impact Payment (EIP) on June 22, 2021. Those payments were authorized by the American Rescue Plan Act (ARPA) of 2021.

In July 2021, Internal Revenue Service documents revealed that, in fact, a total of 560,000 incarcerated individuals received ARPA stimulus checks, totaling $783.5 million.

At your April 6th hearing, I asked you to provide updated figures of how many incarcerated individuals received EIPs from the American Rescue Plan Act, and how much money incarcerated individuals received in EIPs from the American Rescue Plan Act. You said, "I don't have that number at my fingertips. I believe that the law required it."

As you might be aware, Senate Democrats rejected an amendment to the ARPA that would have prevented stimulus checks from being sent to prisoners.

At the hearing, I also asked if you, your department, or the Biden administration felt it was acceptable that hundreds of millions of taxpayer dollars were sent to individuals who are serving federal prison sentences. You responded that you, "didn't have an opinion to share."

As I said at the April 6th hearing, I firmly believe that taxpayer money should never be sent to individuals who are serving in federal prison for truly evil crimes like murder, terrorism, and rape. Each and every taxpayer deserves to know how exactly much money was squandered this way so that it is never allowed to happen again.

To better understand this troubling situation, I again request that you provide my office with the following information by May 15, 2022:

As of April 1, 2022, how many incarcerated individuals received EIPs from the American Rescue Plan Act?

As of April 1, 2022, how much money did incarcerated individuals receive in EIPs from the American Rescue Plan Act?

Were these funds deposited into inmate trust accounts or sent to third parties (including family members)?

Is the Treasury Department working with the Department of Justice to identify federal prisoners with outstanding criminal fines and restitution who received stimulus checks? If not, will your department commit to doing so?

As a member of the House Committee on Financial Services, I look forward to your prompt reply to this letter.

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