Senator Joni Ernst (R-IA), who chairs the Senate Committee on Small Business and Entrepreneurship, announced findings Monday alleging that Biden administration officials systematically concealed and forgave tens of millions of dollars in Paycheck Protection Program (PPP) loans to Planned Parenthood. Ernst has formally requested federal prosecutors open a criminal investigation, citing evidence that the Small Business Administration (SBA) distributed and later erased debt owed by Planned Parenthood, despite the agency having previously declared the organization ineligible for the funds.
The senator's allegations center on internal government communications where SBA officials purportedly replaced every written reference to Planned Parenthood with the word "Benghazi." According to Ernst, this substitution was a deliberate attempt to shield the transactions from congressional oversight and Freedom of Information Act (FOIA) requests, as any search for "Planned Parenthood" would yield no results.
The origins of the controversy date back to the initial months of the COVID-19 pandemic. Under the first Trump administration, the SBA disbursed over $80 million in PPP loans to Planned Parenthood and its affiliates. Congressional Republicans immediately raised objections, arguing that Planned Parenthood's workforce exceeded the 500-employee threshold stipulated for small business classification under the CARES Act, which established the PPP. Subsequently, the SBA issued formal letters to Planned Parenthood, declaring it ineligible and demanding repayment of the funds. Senator Ernst has stated that these funds were never returned.
When the Biden administration took office, Planned Parenthood affiliates reportedly received additional loan payments. As Republicans escalated their demands for explanations in April 2021 regarding the steps taken following the ineligibility determination, SBA officials allegedly intensified their efforts at concealment.
The paper trail highlighted by Senator Ernst leads directly to Peggy Hamilton, who served as the SBA’s top attorney under the Biden administration. In April 2021, Hamilton circulated an email to agency leadership with the subject line "Benghazi (PPP/PPH) Decisions." This message reportedly directed staff to evaluate nonprofit loan applicants for eligibility and specifically instructed them to keep the White House informed as determinations were reached. Hamilton's own direct messages further illustrate the alleged practice. "Can I schedule a meeting so we can decision Benghazi (Planned Parenthood)?" she wrote to a colleague, who replied, "Yes, let’s talk Benghazi."
Senator Ernst directly addressed Hamilton’s conduct in her letter to Acting Attorney General Todd Blanche. "That’s not something she is allowed to do under federal law, and, as a lawyer for almost three decades, she knew that," Ernst wrote.
SBA officials reportedly continued using the "Benghazi" codeword throughout the summer of 2021, even as congressional pressure mounted and a formal hearing took place. During a May 2021 hearing, Senator Rand Paul (R-KY) directly confronted SBA Administrator Isabella Guzman, citing $17 million in PPP funds that had reached Planned Parenthood after the ineligibility ruling. "You believe you are above the law. … It looks like you are specifically hiding this information from us," Paul told Guzman during the proceeding.
Just two days after that hearing, officials were reportedly back in the "Benghazi" email chain, this time to arrange a meeting to "discuss forgiveness." The following month, Administrator Guzman herself scheduled a Microsoft Teams meeting under the title "Benghazi (PPP/PPH) Decision," according to internal records surfaced by the investigation. Senator Ernst noted that "PPH" bears no resemblance to any recognized abbreviation for Planned Parenthood, such as PPFA (Planned Parenthood Federation of America). The invented acronym, much like the "Benghazi" label, would have ensured these meetings would not appear in standard records searches.
By the time the Biden administration concluded, approximately $90 million in PPP loans and accumulated interest owed by Planned Parenthood had been forgiven. Senator Ernst stated that the White House was kept informed throughout this process, raising the possibility that individuals currently serving in the executive branch may be implicated. She has formally called for an investigation under 18 U.S.C. §2017, a federal statute that carries a prison sentence of up to three years for anyone convicted of concealing government records.
This referral to the Justice Department follows a separate DOJ report released earlier this month, which concluded that the Biden Justice Department coordinated with abortion organizations, including Planned Parenthood, to pursue FACE Act prosecutions against pro-life activists. The combined allegations underscore ongoing tensions surrounding federal funding for organizations involved in abortion services and the transparency of government operations.
