Rep. Hill Continues to Raise Red Flags about Treasury’s $700 Million Loan to Yellow
Release, April 30, 2021
Rep. French Hill (AR-02) today issued the following statement outlining his ongoing concerns with Treasury’s $700 million loan to Yellow, formally known as YRC, after the bipartisan Congressional Oversight Commission (COC) published their twelfth report:
“The $700 million taxpayer backed loan Treasury made to Yellow, formerly YRC, was a mistake. Based on the oversight work conducted by the Commission, there is no evidence to support Yellow being critical to national security which means these loans should never have been executed.
“The report released today by the Commission outlines inconsistencies, Yellow’s reliance on the government to bail them out, and poor transparency by the Department of Defense (DOD) and the Treasury. The DOD has been particularly nonresponsive which is disturbing. The American public deserves better accountability, and I will continue to search for answers from the DOD and Treasury and ensure the Commission conducts proper scrutiny over the life of the loans. It’s clear to me, for over a decade now since the start of the financial crisis and now in the midst of pandemic, Yellow has survived only through government intrusion and bailouts. American taxpayers should not have to keep underwriting debt to pay for Yellow’s poor financial decisions.”
The Commission has previously written about the Yellow loan in their seventh and eighth reports. This twelfth report is a continuation of the previous findings. In December 2020, Rep. Hill expressed his concerns with the loan provided to Yellow during the Commission’s third public hearing, which examined the funds authorized by the CARES Act that provide up to $17 billion for loans and loan guarantees to businesses critical to maintaining national security.