Georgia Republican gubernatorial nominee Rick Jackson quietly loaned $20 million at 12 percent interest to a Texas oil refinery that President Donald Trump has hailed as a crown jewel of his “energy dominance” agenda – and that deal is now becoming a liability in one of the country’s tightest governor’s races.
The healthcare billionaire’s loan and ownership stake in America First Refining came to light during his U.S. Tax Court fight with the IRS over deductions tied to low-budget movie productions, Bloomberg News reported. Asked whether any of his firm’s loans had been especially successful, Jackson pointed to the Brownsville, Texas, refinery.
“One is that we’ve invested a loan of $20 million,” Jackson testified, according to a transcript reviewed by Bloomberg. “They’re paying 12 percent interest, 1 percent a month interest and it’s been working.”
“It is the first oil refinery in the United States in the last 50 years that’s going to turn on,” he added.
Jackson also said he owned 15 percent of the closely held company. He estimated it would be worth $2 billion once it goes public, which would make his stake worth $300 million.
The project is a Trump favorite. The White House website lists it as the single largest investment in U.S. manufacturing and industry, valued at $300 billion. Donald Trump Jr. has praised Jackson for helping finance it.
The disclosure comes at an awkward time, as wars in Iran and Ukraine have driven fuel prices sharply higher, and retail diesel has soared nearly 70 percent since late February. It hit a record above $6.50 a gallon last month.
Democrat Keisha Lance Bottoms, a former Atlanta mayor and Joe Biden White House adviser, has seized on the issue and is running ads accusing Jackson of profiting from high pump prices.
“We are watching our farmers across this state, our truck drivers across this state struggle to be able to afford to put gas, to put diesel fuel in their trucks,” Bottoms said in a Sept. 30 briefing.
Her campaign confirmed the attacks refer to Jackson’s America First investment. The refinery has a 20-year deal to sell fuel to India’s Reliance Industries, though it isn’t expected to begin production until 2029.
Jackson’s campaign and America First declined to comment, and the White House didn’t immediately respond to Bloomberg’s request for comment.
An Atlanta Journal-Constitution poll shows the race effectively tied heading into the Nov. 3 election.
Meanwhile, America First is raising more money. An executive said last week that Morgan Stanley is leading the company’s equity and debt fundraising. The company’s slide deck didn’t mention Jackson’s loan.