Reason Study: 22 of 26 Projects Given Federal Energy Dept Loans Were Rated "Junk Grade" Investments Before Loan Awards, Companies Tied to Harry Reid, Al Gore, Angus King
Taxpayer money at work
A new Reason Foundation study finds 22 out of 26 projects were rated as "junk" grade investments before they were awarded taxpayer-backed loans as part of the Department of Energy's Section 1705 loan program, which was part of the 2009 stimulus bill that focused on renewable energy, electric power transmission, and biofuels projects.
The report also highlights taxpayer-backed loans given to companies with ties to Senate Majority Leader Harry Reid, former Vice President Al Gore, former New Mexico Gov. Bill Richardson, and a company founded by former Maine Gov. Angus King, who is now a U.S. Senator. According to the Reason Foundation study, the companies that spent the most on lobbying received the biggest Section 1705 loans.