economy
Treasury Secretary Steven Mnuchin said Monday that Americans who meet the requirements for direct payments in the new Covid-19 relief legislation could see the money reach their bank accounts in a matter of days.
“The good news is that it’s a very quick way to get money into the economy. Let me emphasize: people will see that money early next week,” Mnuchin told CNBC host Jim Cramer .
“People go out and spend that money and that helps small businesses and that helps get more people back to work,” he added. “So it’s very fast, it’s money being recirculated in the economy.”
Mnuchin’s comments came hours before Congress is expected to pass a new $ 900 billion Covid-19 aid bill. The latest bill includes provisions similar to those included in the original CARES Act, the $ 2.2 trillion assistance package passed by U.S. lawmakers in March.
People, including children, will receive $ 600 in direct payments. A family of four could end up with $ 2,400. Payments are declining for people who earned more than $ 75,000 during 2019. They would be phased out for people who earned more than $ 99,000 in income during that year.
Treasury Secretary Steven Mnuchin listens during a Senate Banking Committee hearing in Capitol Hill, Washington, USA, on December 1, 2020.
Al Drago | Reuters
Democrats said the bill would provide $ 284 billion in small business loans from the Payroll Protection Program. The new bill would also target another $ 20 billion in grants for small businesses and $ 15 billion in live event venues.
If passed, the legislation would include a $ 300 federal unemployment supplement and temporarily maintain pandemic-era programs that expand eligibility for unemployment insurance.
Earlier this year, the Treasury Secretary had led negotiations with top Democrats to reach a new stimulus deal. After the 2020 election, Senate Republicans led by majority leader Mitch McConnell took over the deliberations.
For his part, Mnuchin favored a more specific spending bill that focused on helping the sectors most affected by the pandemic, such as airlines and restaurants.
“Unemployment has come down a lot,” Mnuchin said Monday. “It’s a lot more focused now. I hope it’s needed in a short period of time and I think that will lead us to recovery.”
That view is likely to conflict with that of Democrats, including House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer, who have said the $ 900 billion bill is necessary. , but not enough.
Democrats say Congress may have to pass more stimulus in the coming months as the United States begins what is expected to be a record winter of Covid-19 infections. President-elect Joe Biden has said the current bill is a down payment for subsequent actions.
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