Pentagon Doesn’t Know What Happened to $1.3 Billion in Afghanistan

Pentagon Doesn’t Know What Happened to $1.3 Billion in Afghanistan

REuters/Abdul Qodus/Files
By Brianna Ehley, The Fiscal Times

The Pentagon isn’t able to tell federal auditors what happened to more than $1.3 billion in funds intended for construction projects in Afghanistan. 

The money was dispersed through a program established to speed up the rebuilding process in Afghanistan by giving money directly to military officers to build roads, bridges, dams and other projects to avoid the lengthy bureaucratic procurement process. 

But in the rush to spend and build, much of the money paid out by the Commander’s Emergency Response Program (CERP) between 2004 and 2014 has gone unaccounted for, according to auditors who spent the last year trying to find it. 

Related: 7 Threats to U.S. Rebuilding Efforts in Afghanistan 

A new report released Friday by the Special Inspector General for Afghanistan Reconstruction says the Defense Department could only provide its office with documentation for $890 million, or roughly 40 percent, of the total $2.2 billion in funds. 

The auditors blamed the Pentagon’s financial and project management process for not sufficiently tracking spending, saying DoD’s system doesn’t contain enough data or comprehensive information relating to the actual costs of the projects. 

The auditors took the information the Pentagon did provide and divided it up into categories like education, health care, water and sanitation. Aside from transportation, the item that had the most expenses was labeled “unknown.”

 Humanitarian and Reconstructive Projects

U.S. Central Command responded to the inspector general’s findings, or lack thereof, by saying that some of the unaccounted for CERP funds had been shifted to other military needs. “Although the report is technically accurate, it did not discuss the counterinsurgency strategies in relationship to CERP,” the Central Command said.

In total, the U.S. has doled out about $3.7 billion through CERP funds, with $2.2 billion coming from the Defense Department. 

This is just the latest report from SIGAR highlighting the Pentagon’s problems keeping track of the enormous amount of money flowing into Afghanistan. Earlier reporting suggested the U.S. has lost some $100 billion in the reconstruction efforts. 

Marco Rubio Says There’s No Proof Tax Cuts Are Helping American Workers

U.S. Republican presidential candidate Marco Rubio speaks during a rally at the Texas Station Hotel and Casino in North Las Vegas, Nevada
STEVE MARCUS
By The Fiscal Times Staff

Sen. Marco Rubio (R-FL) told The Economist that his party’s defense of the massive tax cuts passed last year may be off base: “There is still a lot of thinking on the right that if big corporations are happy, they’re going to take the money they’re saving and reinvest it in American workers,” Rubio said. “In fact they bought back shares, a few gave out bonuses; there’s no evidence whatsoever that the money’s been massively poured back into the American worker.”

For Richer or Poorer: An Updated Marriage Bonus and Penalty Calculator

iStockphoto/The Fiscal Times
By The Fiscal Times Staff

The Tax Policy Center has updated its Marriage Bonus and Penalty Calculator for 2018, including the new GOP-passed tax law. The tool lets users calculate the difference in income taxes a couple would owe if filing as married or separately. “Most couples will pay lower income taxes after they are married than they would as two separate taxpayers (a marriage bonus), but some will pay a marriage penalty," TPC’s Daniel Berger writes. “Typically, couples with similar incomes will be hit with a penalty while those where one spouse earns significantly more than the other will almost always get a bonus for walking down the aisle.”

Trump Administration Wants to Raise the Rent

Secretary of Housing and Urban Development Ben Carson speaks to employees of the agency in Washington, U.S., March 6, 2017. REUTERS/Joshua Roberts
JOSHUA ROBERTS
By The Fiscal Times Staff

Housing and Urban Development Secretary Ben Carson will propose increasing the rent obligation for low-income households receiving federal housing subsidies, as well as creating new work requirements for subsidy recipients. Some details via The Washington Post: “Currently, tenants generally pay 30 percent of their adjusted income toward rent or a public housing agency minimum rent not to exceed $50. The administration’s legislative proposal sets the family monthly rent contribution at 35 percent of gross income or 35 percent of their earnings by working 15 hours a week at the federal minimum wage -- or approximately $150 a month, three times higher than the current minimum.” (The Washington Post

New Push for Capital Gains Tax Cut

iStockphoto/The Fiscal Times
By The Fiscal Times Staff

Anti-tax activists in Washington are renewing their pressure on lawmakers to pass new legislation indexing capital gains taxes to inflation. The Hill provided an example of such indexing that Grover Norquist recently sent to Treasury Secretary Steven Mnuchin: “Under current policy, someone who made an investment of $1,000 in 2000 and sold it for $2,000 in 2017 would pay capital gains taxes on the $1,000 difference. But if capital gains were indexed, the investor would only pay taxes on $579, since $1,000 in 2000 would be equivalent to $1,421 in 2017 after adjusting for inflation.” Proponents of indexing say it’s just a matter of fairness, but critics claim that it would be just another regressive tax cut for the wealthy. Indexing would cost an estimated $10 billion a year in lost revenues. (The Hill)

Bernie Sanders to Propose Plan Guaranteeing a Job for Every American

U.S. Sen. Bernie Sanders is interviewed by Reuters reporters at his office on Capitol Hill in Washington
ERIC THAYER
By The Fiscal Times Staff

Sen. Bernie Sanders (I-VT) is preparing to announce a plan for the federal government to guarantee a job paying $15 an hour and providing health-care benefits to every American “who wants one or needs one.” The jobs would be on government projects in areas such as infrastructure, care giving, the environment and education. The proposal is still being crafted, and Sanders’ representative said his office had not yet come up with a cost estimate or funding plan. Sen. Kirsten Gillibrand (D-NY) last week tweeted support for a federal jobs guarantee, but Republicans have long opposed such proposals, saying they would cost too much. (Washington Post)