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For Immediate Release
January, 16 2020, 11:00pm EDT
Contact:
Email:,coord(at)jubileeusa.org
IMF Chief Warns of Financial Disaster Driven by Inequality
WASHINGTON
IMF Head Kristalina Georgieva warns of a return of the Great Depression driven by inequality and financial sector instability in a speech delivered at the Peterson Institute of International Economics. Georgieva highlighted new IMF research that compares the current economy to the "roaring 1920s" economy that culminated in the great market crash of 1929.
"The IMF delivered a stark message about the potential for another massive financial disaster that we last experienced during the Great Depression," noted United Nations finance expert and Jubilee USA Director Eric LeCompte. "With inequality on the rise and concerns of stability in the markets, we need to take this warning seriously."
In addition to financial sector stability and growing inequality, Georgieva shared that we face additional challenges in the current economy.
"Trade problems and climate-driven weather events pose additional risks at this time," said LeCompte. "It's imperative that we ensure the financial sector is free of risky behavior and corruption if we want to protect ourselves from another global financial crisis."
Read Georgieva's full speech here.
Jubilee USA Network is an interfaith, non-profit alliance of religious, development and advocacy organizations. We are 75 U.S. institutions and more than 750 faith groups working across the United States and around the globe. We address the structural causes of poverty and inequality in our communities and countries around the world.
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'We Need Calls Now!' Republicans Slip Nonprofit Killer Bill Into Tax Package
"If Democrats capitulate to the wanton destruction of crucial civil society institutions, they had better expect civil society to burn them to the ground for that betrayal."
May 13, 2025
House Republicans on Monday quietly revived a proposal that would grant the Trump administration broad authority to crush nonprofits it views as part of the political opposition, from environmental justice organizations to news outlets.
Fight for the Future and other advocacy groups called attention to the measure, which was buried in the final pages of the House Ways and Means Committee's draft reconciliation bill, starting on page 380.
A markup hearing for the legislation is scheduled to take place on Tuesday at 2:30 pm ET.
The proposal would empower the U.S. Treasury Department to revoke the tax-exempt status of nonprofits deemed material supporters of terrorism, with only a hollow simulacrum of due process for the accused organizations. It is already illegal for nonprofits to provide material support for terrorism.
"The House is about to hand the Trump administration the ability to strip nonprofits of their 501(c)3 status without any reason or recourse. This is a five-alarm fire for nonprofits nationwide," said Lia Holland, campaigns and communications director at Fight for the Future. "If the text of last autumn's H.R. 9495 is passed in the budget, any organization with goals that do not line up with MAGA can be destroyed with a wink from Trump to the Treasury."
The measure passed the Republican-controlled House late last year with the support of more than a dozen Democrats, but it never received a vote in the Senate.
"This terribly thought-out legislation means that under the current administration, every environmental, racial justice, LGBTQ+, gender justice, immigration justice, and—particularly—any anti-genocide organization throughout the country may be on the chopping block," said Holland. "If Democrats capitulate to the wanton destruction of crucial civil society institutions, they had better expect civil society to burn them to the ground for that betrayal."
WE NEED CALLS NOW! HR 9495, now known as Section 112209, if passed, would give the Trump administration unprecedented power in suppressing nonprofits, by allowing the administration the power to strip organizations of their tax exempt status! Call 319-313-7674
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— Fight for the Future (@fightforthefuture.org) May 12, 2025 at 7:53 PM
The GOP's renewed push for what opponents have called the "nonprofit killer bill" comes as the Trump administration wages war on nonprofit organizations, threatening to strip them of their tax-exempt status as part of a sweeping attack on the president's political opponents.
"In the months since inauguration, Trump and his Cabinet have found other means of cracking down on political speech—particularly speech in favor of Palestinians—by deporting student activists and revoking hundreds of student visas. He has already threatened to attempt to revoke the tax-exempt status of Harvard University, part of his larger quest to discipline and punish colleges," journalist Noah Hurowitz wrote for The Intercept late Monday.
"But the nonprofit clause of the tax bill would give the president wider power to go after organizations that stand in his way," Hurowitz added.
Robert McCaw, government affairs director at the Council on American-Islamic Relations, said Monday that "this provision is the latest in a growing wave of legislative attacks on constitutional rights."
"CAIR is urging every member of the Ways and Means Committee to VOTE NO on the inclusion of this provision and to support an expected amendment to strike the language," the group said in a statement. "Three Democratic members of the committee—Reps. Brad Schneider (Ill.), Tom Suozzi (N.Y.), and Jimmy Panetta (Calif.)—previously voted in favor of the Nonprofit Killer Bill on the House floor last year. They must reverse course and vote to oppose it in committee."
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Critics Decry Trump-GOP Tax Bill as 'Trickle-Down Economics on Steroids'
"I'll tell you what's coming: handouts for billionaires, healthcare cuts for the people," warned one Democratic lawmaker.
May 12, 2025
House Democrats and civil society groups led condemnation of legislation introduced Monday by congressional Republicans and backed by President Donald Trump that one lawmaker said is "about tax breaks for billionaires and kickbacks to corporate donors" at the expense of working class families.
The 389-page bill includes trillions of dollars in tax cuts that would disproportionately benefit the ultra-wealthy and corporations, largely by extending Trump's first-term reductions in taxation mainly for top earners derided as the "GOP tax scam." The proposal also broadens the estate tax exemption for the superrich and makes permanent a massive tax break on offshore corporate profits, a top wish-list item for Big Business.
The proposal would reduce government revenue by trillions of dollars and swell the national debt—currently a staggering $36.2 trillion, or the equivalent of 127% of U.S. gross domestic product—and cost over $5 trillion.
The bill partially offsets the revenue loss by sharply slashing social spending, including on the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. The legislation would impose work and cost-sharing requirements on many Medicaid beneficiaries and increase eligibility checks. Critics warn that millions of people would lose their health insurance coverage if the bill is passed in its current form.
Former Democratic U.S. Labor Secretary Robert Reich called the proposed legislation "trickle-down economics on steroids."
The Trump-GOP tax bill proposal: -Extend 2017 cuts for top earners -Increase the "pass-through" loophole for big businesses -Expand the estate tax exemption for the ultra-rich -Make a huge tax break for offshore corporate profits permanent Trickle down economics on steroids.
— Robert Reich (@rbreich.bsky.social) May 12, 2025 at 11:32 AM
On the positive side, the popular Child Tax Credit would grow for many households under the proposal. So would the standard deduction. There would also be temporary tax breaks for overtime pay, car-loan interest, and tips. The proposal also establishes a new tax-preferred savings account for children younger than 8 years old under which the government would contribute the first $1,000 for kids born between 2025-28.
However, critics noted that millions of families would receive no benefit from the Child Tax Credit increase, wealthy business partnerships would get an even bigger passthrough deduction than in an earlier draft of the bill, and taxes on many tips and overtime work remain.
"This bill isn't about balancing the budget—it's about tax breaks for billionaires and kickbacks to corporate donors and billionaires, while silencing public voices," said Rep. Melanie Stansbury (D-N.M.). "We see the grift and we're calling it out."
Rep. Brendan Boyle (D-Pa.), the ranking member of the House Budget Committee, noted that "Trump loves to call his budget the 'big, beautiful bill.'"
"It is—for billionaires," he added. "While Trump's billionaire donors get trillions in tax cuts, working Americans get the largest Medicaid cuts in American history."
House Ways and Means Committee Ranking Member Rep. Richard Neal (D-Mass.) warned, "I'll tell you what's coming: handouts for billionaires, healthcare cuts for the people."
The GOP agenda: rip health care away from millions of Americans to pay for massive tax breaks for the ultra-rich. This is the moment to fight back with everything we’ve got.
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— Elizabeth Warren (@elizabeth-warren.bsky.social) May 12, 2025 at 1:50 PM
Civil society groups also sounded the alarm over the bill.
"Families across the country are struggling now more than ever to get food on the table, visit the doctor, and afford lifesaving medication," ParentsTogether Action executive director Ailen Arreaza said Monday. "But instead of finding ways to offer some relief, Republicans in Congress are racing to pass a bill to hand massive new tax breaks to the ultra-wealthy."
"Even worse? Their plan is to pay for it by ripping healthcare and nutrition aid away from millions," Arreaza added. "One thing is clear: Gutting Medicaid and SNAP to fund tax breaks for the rich is cruelty disguised as policy—and parents across the country will take note of how their representatives vote this week as evidence of who they're fighting for, their constituents or their wealthy donors."
David Kass, executive director of Americans for Tax Fairness, said in a statement that "the House GOP has revealed in broad daylight that their tax bill is a clear scam—one that hands out massive giveaways to their billionaire and corporate donors off the backs of their constituents with a price tag of over $5 trillion."
"The plan's massive cuts to vital programs like Medicaid and SNAP will drive up healthcare and food prices for millions of workers and families, while billionaires pocket the money and the national debt soars," Kass added. "Working and middle-class families—and future generations—shouldn't have to pay higher prices simply to enrich billionaire elites and the politicians in their pocket."
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'Oligarchy In Action': Energy Portion of House Budget Bill Slammed as Gift to Big Oil
"The idea that corporate polluters can pay a fee to freely pollute our communities is beyond the pale," said one environmental advocate.
May 12, 2025
Lawmakers and green groups on Monday sounded the alarm on the energy and environmental provisions in the U.S. House Energy and Commerce Committee's section of a Republican-backed tax and spending megabill, which is slated to be marked up in a committee meeting on Tuesday.
Critics are warning the proposal will harm regular Americans by seeking savings through a take back of funds from various programs in the Inflation Reduction Act (IRA), the signature climate legislation signed into law under former U.S. President Joe Biden, and includes "giveaways" for oil and gas companies.
Congressional Republicans are pressing ahead with a spending and tax cuts bill that will primarily benefit the wealthy and would be paid for in part through steep cuts to Medicaid, despite widespread opposition. Those cuts were first fleshed out in a House budget blueprint earlier this year and are part of the budget bill from the House Energy and Commerce Committee, the text of which was unveiled on Sunday. But Medicaid cuts are not the only aspect of the bill drawing scrutiny.
"Giving giant tax breaks to billionaires while increasing electric bills for American families is wrong. Republicans are sacrificing America's energy dominance while setting up a 'pay to play' scheme for polluters to bribe the Trump Administration to obtain energy permits," said Energy Subcommittee ranking member Rep. Kathy Castor (D-Fla.) on Monday. "Dismantling our landmark Inflation Reduction Act will kill jobs, hurt businesses, and drive-up Americans' energy costs."
The legislation includes a provision that would allow energy developers to access an expedited permitting review if they pay $10 million or one percent of the anticipated cost of the construction of the project.
Another provision would have companies applying to export or import natural gas pay a nonrefundable $1 million fee and in return have their project "deemed to be in the public interest."
"The idea that corporate polluters can pay a fee to freely pollute our communities is beyond the pale," said Mahyar Sorour, a director of the Beyond Fossil Fuels Policy at the Sierra Club, on Monday.
"While it slashes much-needed support for clean energy and climate resilience, it would allow fossil fuel companies to pay to get their project approved. That's not just wrong, it's un-American," said Alexandra Adams, chief policy advocacy officer at the Natural Resources Defense Council.
According to E&E News, the legislation aims to rescind "the unobligated balance" of IRA funds for multiple Department of Energy programs, such as money meant for the Tribal Energy Loan Guarantee Program.
"Republicans just proposed cutting thousands of jobs, billions of dollars in clean energy funding, and billions of dollars in healthcare funding from their own districts. Why? Because Big Oil and healthcare CEOs told them to. This is not how a democracy should function. This is oligarchy in action," said Sunrise Movement executive director Aru Shiney-Ajay in a statement on Monday.
"Young people fought tooth and nail for the funding now on the chopping block," added Shiney-Ajay, invoking the organizing and activism that went into pressuring lawmakers to pass the IRA.
Republicans are also planning to rescind the unobligated balances from the Environmental Protection Agency's Greenhouse Gas Reduction Fund, an IRA program that is supposed to support clean energy projects primarily for historically marginalized and low-income communities, per E&E.
What's more, according to E&E, the plan would go after a variety of IRA programs, such as those designed to reduce air pollution at schools and ports and limit emissions from diesel engines. Also it takes aim at the IRA's methane fee, which levies a fee on oil and gas companies who produce too much planet-warming methane.
"House Republicans are bending over backwards to give handouts to big polluters while their constituents pay the price of worse pollution and higher energy bills," said Sorour. "This is a terrible bill for the American people. The House should get their priorities straight and reject this proposal."
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