Sen. Joni Ernst on Wednesday told Newsmax she is calling for a halt and full audit of a federal small-business contracting program, saying the Small Business Administration’s 8(a) business development initiative has been plagued by abuse and should be paused until investigators can determine where the money has gone.
"The 8(a) contracting program was designed to help small businesses that are socially and economically disadvantaged, but it is rampant with fraud," the Iowa Republican said on "National Report."
"What I've proposed is that we stop sending those funds out through that program until we can do a full audit, exposing what has gone to those businesses that truly do need assistance, and then exposing those fraudsters who have claimed dollars that should not be theirs."
Ernst, who chairs the Senate Small Business Committee, said she has focused for years on oversight efforts.
"I have spent the past 11 years working on exposing fraud, waste and abuse within the federal government," she said, adding that the committee is expanding that work under her leadership.
She also pointed to what she described as broader scrutiny of fraud tied to pandemic-era relief, including business-aid programs such as the Paycheck Protection Program and disaster loans.
“We have rampant COVID fraud, as we all know,” Ernst said. "And I'll give you one example: $333 million went out through the Paycheck Protection Program and the Disaster loan program to individuals who were 115 years of age and older."
Ernst said the Small Business Committee planned to address fraud issues at a hearing later on Wednesday.
The Iowa senator also discussed the economy and politics heading into next year’s election cycle, saying President Donald Trump should continue making public appearances focused on affordability and that the issue remains central for voters.
"Americans love it when the president comes to their hometown," Ernst said. "We know that affordability is one of those issues."
Ernst criticized economic conditions under former President Joe Biden and credited Trump with improvements.
"Under the four years where we had President Biden, we saw Americans' purchasing power drop by $3,000," the senator said. "Just 10 months into President Trump's administration, we are seeing that overall, Americans' wages have increased by about 1,000 bucks."
She also argued that energy prices are key to reducing costs.
"Everything comes back to energy," Ernst said.
Looking toward the 2026 midterms, Ernst said Trump remains a major factor in motivating Republican voters.
"We have seen this when President Trump is not on the ballot, you know, folks aren't as motivated to get out," she said, adding that Trump would campaign to help Republican candidates.
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