Christ Yoder
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After President Donald Trump’s administration ruled in early April that small gaming companies would not be eligible for an emergency lending program, the state’s congressional delegation set to work to reverse the decision .
What appeared to be an easy and achievable solution to the rules of the Small Business Administration’s $ 350 billion paycheck protection program turned out to be a test of the effectiveness – and patience – of the six federal lawmakers. of State.
“This is perhaps the greatest pressure I have ever felt for you to exert for your district,” said Representative Mark Amodei, the only Republican on the delegation, in an interview in which he revealed his ties to the new White House chief. Staff Mark Meadows.
Interviews with lawmakers and aides in Nevada paint a picture of a court press in which lawmakers used all forms of leverage they had with the Trump administration and committee chairs. They pulled strings, cajoled White House officials, and in one case resorted to a rebuke from Treasury Secretary Steven Mnuchin in front of other lawmakers when a initial rewrite of the rules did nothing to help small businesses in Nevada that had been excluded from the program.
“I was just pissed off,” Amodei said. “You basically decided that these industries and these employees did not deserve to be helped in the worst economic crisis of modern times,” he recalls thinking.
The rampant lobbying began around March 27, the day President Trump enacted the $ 2.2 trillion economic stimulus package, suggesting the delegation had heard of eligibility issues for small businesses with operations. even before the rules become official. Democratic Representative Dina Titus, co-chair of the Congressional Gaming Caucus, to which members of the Nevada House belong, wrote a letter to SBA administrator Jovita Carranza, calling on the federal government to “help ALL small businesses” including including small gaming establishments. .
On April 3, Titus’ fears seemed well founded. The SBA unveiled its original rule for the Small Business Program which deemed ineligible businesses that made more than 33% of gaming revenue. Convenience stores, bars, taverns and the like with gaming systems in their facilities tend to generate a substantial portion of the revenues from these operations, often exceeding the 33 percent threshold and preventing them from participating.
“Small gaming businesses include many of our local bars, restaurants and convenience stores. They support the livelihoods of countless Nevada residents, ”a spokesperson for Representative Susie Lee said. “These jobs are vital to our economy, and the member could not stand aside and let Washington, DC leave our state behind.”
The Nevada delegation has moved up a gear. Senators Jacky Rosen and Catherine Cortez Masto, along with Representatives Steven Horsford, Lee, Titus and Amodei made urgent appeals and wrote letters to various officials.
Among them was Cortez Masto, a member of the Senate Banking and Finance Committees, who worked to gain the support of his colleagues in the Senate and to emphasize the importance of small gambling operations, including tribal games, in states across the country, not just Nevada.
“I am proud of the work I have done, along with the entire Nevada delegation, to bring the concerns of Nevada’s small gaming businesses to the attention of the administration and help secure the overthrow of a obsolete rule, ”she said in a statement provided. by his office.
Amodei relied on her relationship with Meadows, who was one of the first people called by Amodei. Meadows resigned his seat in Congress in March after serving four terms as chief of staff.
“As the only Republican with, I think, that kind of access to administration… it’s like ‘Hey, I have to have this,’” Amodei continued.
Meadows has already helped Amodei obtain a new postal code for the Tahoe-Reno industrial hub in 2018. Amodei said he had been trying to pass legislation for years and Meadows, who at the time was chair of a panel with jurisdiction over the US Postal Service, said asked the USPS to quickly establish the new zip code.
The zip code battle came to Amodei’s mind when he got a call from Meadows saying the PPP issue would be fixed.
“Look, this is just to get a zip code, thank you very much,” Amodei told Meadows.
“If Mark Meadows needs someone to mow his lawn, I’ll be there with my mower and do it for free,” Amodei said.
A White House official praised Amodei’s efforts when asked about Amodei’s back and forth trips with Meadows.
“Congressman Amodei has been a formidable advocate for Nevada on this issue and is in frequent contact with the White House, working in partnership with President Trump to meet the needs of Nevadans,” the official said.
At one point, Amodei’s frustration spilled directly with Mnuchin, who organized a series of separate calls with Republicans and Democrats in the House and Senate as they negotiated the second round of PPP funding.
“I want to know, by name, who is the person in the Treasury I’m fighting on this,” Amodei recalls telling Mnuchin on a conference call with Republicans in the House. “,
According to Amodei, Mnuchin responded by saying he would speak offline afterwards. Amodei gave his phone number and said curtly, “I’ll wait by the phone” before hanging up. A spokesperson for the Treasury did not respond to a request for comment on the situation.
“Look, I’m no asshole, but I got it,” Amodei said of his mood at the time. “I shouldn’t have to work so hard for them to implement the clear meaning of the law. “
After the call, Amodei said he received text messages and attack boy calls from some Republican colleagues in the House who were also frustrated with the administration over this and other issues.
At the time of this whole House GOP call with Mnuchin, the SBA had published, April 14, new PPP guidelines that say businesses that receive up to half of their income and earn more than $ 1 million from gambling are eligible for PPP loans. This was an improvement over the original rule, but still not enough to help a large majority of small gaming operations in Nevada. Analysts said that the change would likely help few or no Nevada businesses.
Rosen, who has worked to cultivate relationships across the aisle since being elected in 2018, also intervened. She used her seat on the Small Business and Entrepreneurship Committee to enlist the help of President Marco Rubio, a Republican from Florida, who then called Mnuchin. lobby for change. She called Rubio on a Sunday to say, “We are not asking for special treatment. We’re just saying equal access, like every other industry, ”Nevada aides said. Rubio had written the provision in the stimulus package that created the $ 350 billion program, so he had special influence.
Rosen has communicated directly with key decision makers, including SBA Administrator Carranza, Small Business Committee Chairman Rubio, Minority Leader Chuck Schumer and others about an immediate solution to lift the restrictions imposed by the SBA to small businesses that earn gaming revenue, ”his office said. . A spokesperson for Rubio confirmed that the senators had spoken.
Meanwhile, Amodei said he was getting even angrier. He had been told the week before that the Trump administration would relax eligibility rules to allow those with up to 50% of gambling revenue to benefit, but had fought back that the change was not enough. And then we learned that the initial $ 350 billion in PPP funding was about to run out.
“I’m like ‘This is bullshit,” Amodei said. “You burned a week and you came out with the same stuff. You said you take our comments to heart.
Ultimately, last week, staff at Meadows and Mnuchin assured Amodei that restrictions withholding money from gambling interests would be lifted, Amodei said. White House officials asked him to hold back his fire and he agreed. Mnuchin called Amodei the day before the new change was announced to tell him it was done.
This change was included in a announcement last week from the Trump administration that it would repeal restrictions on gambling revenue upon making funds available for the recent-second tranche approved financing PPP financing.
According to Amodei, Mnuchin said it was a “cleaner” solution rather than changing the rule in the first round of funding.
“This tells you something about what’s going on at the Treasury,” Amodei noted, adding that he disagreed with this rationale. Amodei said he suspected a possible anti-gambling bias within the Treasury Department, although he said he believed it was more of an institutional bias and that he did not blame not Mnuchin for the rule or the delay in its correction.
“I’m not going to put this at Mnuchin’s feet, because I know he was drinking from a fire hose and taking care of big issues,” Amodei said.
A Treasury spokesperson did not respond when asked to comment.
The Nevada delegation is now rallying around legislation introduced by Titus earlier this month to codify that small legal gambling businesses have access to all coronavirus relief programs created by the CARES Act and prior legislation. Rosen unveiled the Senate companion measure. Both bills send a signal to the Trump administration for the upcoming coronavirus relief program.
Horsford, who sits on the Ways and Means Committee, which has jurisdiction over the Treasury, also puts the White House on notice.
“We need a lot of oversight from this administration,” said Horsford, who said Ways and Means chairman Richard Neal agreed to ensure that Nevada’s gaming interests get some traction. money. “It doesn’t always require legislation. It requires our committees to come together and do our job. A spokesperson for the Ways and Means Committee confirmed that Horsford raised the issue with Neal.
After learning last Thursday – a day before the official announcement – that the restrictions would be lifted, Amodei did not announce this information. He said he was reluctant after being burned by the administration before.
“I kept my mouth shut, I got on a plane back to Nevada on Friday morning,” he recalls.
After the announcement, he sent thank you messages to Mnuchin and Meadows.
“I’m going to go back to being a low maintenance or no maintenance guy, solving my own problems,” Amodei said.
Disclosure: The Nevada Independent has been approved for a PPP loan.
This story was updated on April 30, 2020 at 7:10 a.m. to include confirmation by Democratic Rep. Richard Neal of his small casino discussions with Rep. Steven Horsford.
