Thursday, March 1, 2012

Small union receives $341 million federal loan despite legal questions

BY:

The Obama administration has awarded $341 million in loans to the Freelancers Union—a small organization with deep progressive ties whose board members have donated more than $11,000 to Democrats—despite a law suggesting the union should not be eligible for such a loan.

It was recently announced that health care cooperatives launching in eight states will be receiving a total of $638 million in federal loans. The White House hopes the program, created as part of Obama’s health care reforms, will create competitive alternatives to private insurers. Conservatives cite the program as another instance of cronyism.

The largest of these loans went to the Freelancers Union, a New York-based organization that helps independent workers gain access to health benefits, to start health insurance plans in three states.

Read more: http://freebeacon.com/freelance-cronyism/

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