Sen. Ernst Alleges Legal Violations by Biden Administration Regarding Planned Parenthood Loans

Senator Joni Ernst (R-Iowa) stated on Monday that officials in the Biden administration might have broken the law by hiding pandemic-related loans to Planned Parenthood, a significant provider of abortion services.

Ernst, who oversees the committee responsible for the Small Business Administration (SBA), mentioned that evidence suggests agency staff granted and later forgiven Paycheck Protection Program (PPP) loans even after planning documents proved the organization ineligible. This was initially reported by Luke Rosiak.

She accused high-ranking agency officials, including SBA Administrator Isabella Guzman, of using the term “Benghazi” in emails to mask their dealings with Planned Parenthood.

“We know that after meetings about Benghazi, around $90 million in Planned Parenthood SBA PPP loans, along with interest, were forgiven by the current administration,” Ernst noted.

She requested the Justice Department to investigate these occurrences, citing a law that could impose a prison sentence of up to three years for those who try to hide federal records, according to information disclosed by a media outlet.

During the initial outbreak of COVID-19, the SBA, under former President Trump, had allocated more than $80 million in PPP loans to Planned Parenthood and its affiliates after they “self-certified” their eligibility.

This drew outrage from Republican lawmakers, who urged the agency to exclude major abortion providers from the program. Subsequently, the SBA informed Planned Parenthood and its affiliates that they were no longer eligible and demanded repayment.

Ernst claimed that the SBA has yet to recover those funds, even though the affiliates received another round of payments just as President Biden took office.

In April 2021, Republicans questioned SBA actions following the determination of Planned Parenthood affiliates’ ineligibility for loans. During that time, Peggy Hamilton, the SBA’s chief attorney, sent an email titled “Benghazi (PPP/PPH) Decision” outlining these discussions. The context implied that “Benghazi” was a code for family planning.

In one correspondence, Hamilton appeared to acknowledge the code, asking, “Can I schedule a meeting to decide on Benghazi?” To which a staff member replied, “Yes, let’s talk about Benghazi.”

In her letter, Ernst emphasized the absurdity of suggesting that Hamilton was not trying to shield Planned Parenthood records from scrutiny. “Federal law prohibits such actions, and she must be aware of it after nearly three decades as a lawyer,” she wrote.

Despite ongoing Republican pressure and congressional hearings, it was reported that SBA officials continued using the pseudonym in their communications into the summer of 2021. Arthur Prouse, who later became the SBA’s chief of staff, was reportedly among those involved.

Senator Rand Paul (R-Ky.) confronted Guzman during a May 2021 hearing about $17 million in PPP funds allocated to Planned Parenthood despite their ineligibility. Paul remarked, “You believe you are above the law… It seems you are deliberately hiding this information from us.”

Two days post-hearing, SBA officials discussed setting up a meeting to “discuss forgiveness” related to the loans. The following month, Guzman organized another meeting called the “Benghazi (PPP/PPH) Decision,” as recorded in internal documents.

Ernst commented that if someone had searched for government documents regarding Planned Parenthood loans, this meeting would have gone unnoticed, similar to the events surrounding Benghazi. She clarified, “PPH isn’t an abbreviation for abortion provider; it’s often referred to as PPFA, meaning Planned Parenthood of America.”

She raised concerns about the possibility of collusion among SBA Biden executives, asserting that Guzman’s alleged concealment of federal records represents clear violations of law and must be investigated.

Ernst added that individuals involved might still hold positions within the White House.

Her revelations came after the Justice Department released a report indicating that the Biden administration had collaborated with abortion organizations, including Planned Parenthood, to pursue pro-life activists under the FACE Act.