Although a final version of the Coronavirus Aid, Relief, and Economic Security (CARES) Act is not yet available, based on what we know so far, it appears that the legislation will include the provisions described below establishing oversight functions for the use of stimulus and bailout funds.  According to a number of sources, the bill provides for a Treasury Department Special Inspector General for Pandemic Recovery, a Pandemic Response Accountability Committee, and a Congressional Oversight Commission with subpoena power.  Senate leaders reportedly modeled these provisions after the Troubled Asset Relief Program (TARP), which was similarly subject to a special inspector general, oversight board, and five-member congressional oversight panel.  We expect that these provisions likely will survive any further negotiations and votes in both houses of Congress.

Special Inspector General for Pandemic Recovery

The bill establishes a Special Inspector General for Pandemic Recovery within the Department of the Treasury.  The Special Inspector General will be presidentially appointed, as was the Special Inspector General for TARP.  They will be responsible for conducting, supervising, and coordinating audits and investigations of the making, purchase, management, and sale of loans, loan guarantees, and other investments by the Treasury under this Act.  Like the Special Inspector General for TARP, the Special Inspector General for Pandemic Recovery will also be responsible for providing quarterly reports to Congress.

Pandemic Response Accountability Committee

The bill establishes a Pandemic Response Accountability Committee through the Council of Inspectors General on Integrity and Efficiency to enhance government-wide protection for taxpayer dollars, and appropriates $80,000,000 for the Committee.  TARP created a similar oversight board, called the Financial Stability Oversight Board, which was comprised of the Chairman of the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, the Director of the Federal Housing Finance Agency, the Chairman of the Securities Exchange Commission, and the Secretary of Housing and Urban Development.

Congressional Oversight Commission

The bill authorizes the creation of a bipartisan Congressional Oversight Commission charged with the oversight of the Department and Treasury and Federal Reserve as they work to provide economic stability in the wake of the Coronavirus.  Like the TARP Congressional Oversight Panel, the Oversight Commission will consist of five congressionally appointed members:

  1. 1 member appointed by the Speaker of the House of Representatives;
  2. 1 member appointed by the House Minority Leader;
  3. 1 member appointed by the Senate Majority Leader;
  4. 1 member appointed by the Senate Minority Leader; and
  5. 1 member appointed by the Speaker of the House and Senate Majority Leader, after consultation with the Senate Minority Leader and House Minority Leader.

Also like the TARP Congressional Oversight Panel, the CARES Congressional Oversight Commission will have significant authority to conduct oversight and investigations.  It will be allowed to hold hearings, take testimony, and make requests for information.  It will also be required to submit reports to Congress every 30 days, like the TARP Oversight Panel.  The reports must specify the following:

  • The impact of purchases made on the financial wellbeing of people, financial markets, and financial institutions;
  • The extent to which the information made available on transactions has contributed to market transparency; and
  • The effectiveness of loans, loan guarantees, and investments made in minimizing long-term costs to taxpayers and maximizing the benefits for taxpayers.

The Commission will terminate on September 30, 2025.  We expect the Commission to be very active in that time, based on its predecessor.  The TARP Congressional Oversight Panel held twenty-six hearings over two-and-a-half years on the causes, symptoms, and effects of the economic crisis and government response and reform efforts.

Given the significance of these newly proposed oversight functions, we will revisit this topic in greater detail once CARES is enacted.

—Updated 4/6/2020

Photo of Robert Kelner Robert Kelner

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads …

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads the firm’s prominent congressional investigations practice.

Rob’s political law compliance practice covers federal and state campaign finance, lobbying disclosure, pay to play, and government ethics laws. His expertise includes the Federal Election Campaign Act, Lobbying Disclosure Act, Ethics in Government Act, Foreign Agents Registration Act, and Foreign Corrupt Practices Act.

He is also a leading authority on the arcane rules governing political contributions and marketing activities by registered investment advisers and municipal securities dealers.

Rob’s political law clients include numerous multinational corporations, many of which are household names.  He counsels major banks, hedge funds, private equity funds, trade associations, PACs, political party committees, candidates, lobbying firms, and politically active high-net-worth individuals. He has represented the Republican National Committee, National Republican Congressional Committee, and National Republican Senatorial Committee.  He also advises Presidential political appointees on the complex vetting and confirmation process.

As a partner in the firm’s White Collar Defense & Investigations practice group, Rob regularly defends clients in congressional investigations before virtually every major congressional investigation committee.  He also defends corporations and others in investigations by the Federal Election Commission, the Public Integrity Section of the U.S. Department of Justice, federal Offices of Inspector General, and the House & Senate Ethics Committees.  He has prepared many CEOs and corporate executives for testimony before congressional investigation panels. He regularly leads the Practicing Law Institute’s training program on congressional investigations for in-house lawyers.  In addition, he is frequently retained to lead internal investigations and compliance reviews for major corporate clients concerning lobbying and campaign finance law issues.

Rob has appeared as a commentator on political law matters on The PBS News Hour, CNBC, Fox News, and NPR, and he has been quoted in the New York Times, Washington Post, Wall Street Journal, Associated Press, Legal Times, Roll Call, The Hill, Politico, USA Today, Financial Times, and other publications.

Rob is Chairman of Covington’s Professional Responsibility Committee and a General Counsel of the firm.  He also currently serves as Chairman of the District of Columbia Bar’s Legislative Practice Committee, and he previously was appointed by the President of the American Bar Association to serve on the ABA’s Standing Committee on Election Law.

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Photo of Brian D. Smith Brian D. Smith

Brian Smith assists clients with challenging public policy matters that combine legal and political risks and opportunities.

Brian represents companies and individuals facing high-profile and high-risk congressional investigations and hearings, and other criminal, civil, and internal investigations that present legal, political, and public…

Brian Smith assists clients with challenging public policy matters that combine legal and political risks and opportunities.

Brian represents companies and individuals facing high-profile and high-risk congressional investigations and hearings, and other criminal, civil, and internal investigations that present legal, political, and public relations risks. He assists companies and executives responding to formal and informal inquiries from Congress and executive branch agencies for documents, information, and testimony. He has extensive experience preparing CEOs and other senior executives to testify before challenging congressional oversight hearings.

Brian develops and executes government relations initiatives for clients seeking actions by Congress and the executive branch. He has led strategic efforts resulting in legislation enacted by Congress and official actions and public engagement at the most senior levels of the U.S. government. He has significant experience in legislative drafting and has prepared multiple bills enacted by Congress and legislation passed in nearly every state legislature.

Prior to joining Covington, Brian served in the White House as Assistant to the Special Counsel to President Clinton. He handled matters related to the White House’s response to investigations, including four independent counsel investigations, a Justice Department task force investigation, two major oversight investigations by the House of Representatives and the Senate, and several other congressional oversight investigations.

Brian is a Professorial Lecturer in Law at the George Washington University Law School.

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Photo of Morgan Schreurs Morgan Schreurs

Morgan Schreurs helps clients develop and execute public policy strategies, counsels clients through cultural change and political risk, and builds and manages coalitions to accomplish clients’ objectives.

Morgan primarily works with wireless technology, health technology, financial technology, and other companies on public policy…

Morgan Schreurs helps clients develop and execute public policy strategies, counsels clients through cultural change and political risk, and builds and manages coalitions to accomplish clients’ objectives.

Morgan primarily works with wireless technology, health technology, financial technology, and other companies on public policy matters important to highly regulated industries.

Morgan is a skilled legislative drafter with experience drafting bills and amendments on a wide variety of topics introduced and enacted by the U.S. Congress and state legislatures.

Drawing on her experience in Minnesota State government relations, Morgan co-leads the firm’s state policy practice, advising clients on complex multistate legislative and regulatory policy matters and managing state advocacy efforts.

Morgan is on the forefront of social justice issues. As the Policy Director of Invent Together—an alliance of universities, nonprofits, companies, and other stakeholders dedicated to broadening participation in inventing and patenting—she has successfully advocated for the enactment of legislation to close the inventor diversity gaps. She serves on Working Group for the Council for Inclusive Innovation led by the Department of Commerce. She is also a member of the Leadership Advisory Committee (LAC) of the National Women’s Law Center (NWLC) and the Chair of the NWLC LAC Public Policy Subcommittee. In addition, Morgan maintains an active pro bono practice focused on matters related to equity and inclusion.

Prior to joining Covington, Morgan worked for the U.S. Senate Committee on Health, Education, Labor & Pensions (HELP) under former Ranking Member Patty Murray (D-WA). She also supported federal, state, and local political campaigns and served on the Hillary for America National Advance Team.

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