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Ross: 'I don't quite understand' why federal workers need food banks during shutdown
Commerce Secretary Wilbur Ross said Thursday that he was confused why thousands of federal workers, who've already missed one paycheck, are relying on food banks during the partial government shutdown.
Ross said on CNBC's "Squawk Box" that he didn't understand why some of the roughly 800,000 unpaid federal workers have flocked to food banks for meals instead of taking out loans against back pay guaranteed by a bill President Trump signed last week.
"I know they are and I don’t really quite understand why," said Ross, who's reportedly worth roughly $700 million.
"So the 30 days of pay that some people will be out, there’s no real reason why they shouldn’t be able to get a loan against it, and we’ve seen a number of ads of financial institutions doing that."
Hundreds of banks and credit unions have offered low- or no-interest loans against back pay to federal workers who will not be paid until the shutdown ends. But thousands of those employees are still struggling to cover basic expenses, and furloughed federal contractors may not receive backpay at all.
The shutdown, now in its 34th day, could take a steep toll on the U.S. economy. The president's top economist said Wednesday that the shutdown could wipe out all of the country's first quarter gross domestic product growth if it lasts through March.
Ross: 'I don't quite understand' why federal workers need food banks during shutdown
Commerce Secretary Wilbur Ross said Thursday that he was confused why thousands of federal workers, who've already missed one paycheck, are relying on food banks during the partial government shutdown.
Ross said on CNBC's "Squawk Box" that he didn't understand why some of the roughly 800,000 unpaid federal workers have flocked to food banks for meals instead of taking out loans against back pay guaranteed by a bill President Trump signed last week.
"I know they are and I don’t really quite understand why," said Ross, who's reportedly worth roughly $700 million.
"So the 30 days of pay that some people will be out, there’s no real reason why they shouldn’t be able to get a loan against it, and we’ve seen a number of ads of financial institutions doing that."
Hundreds of banks and credit unions have offered low- or no-interest loans against back pay to federal workers who will not be paid until the shutdown ends. But thousands of those employees are still struggling to cover basic expenses, and furloughed federal contractors may not receive backpay at all.
The shutdown, now in its 34th day, could take a steep toll on the U.S. economy. The president's top economist said Wednesday that the shutdown could wipe out all of the country's first quarter gross domestic product growth if it lasts through March.
