Treasury Secretary Steven Mnuchin told CNBC on Monday that Americans who qualify for direct payments in the new Covid aid legislation can see money ending up in their bank accounts within days.
“The good news is that this is a very, very quick way to get money into the economy. Let me emphasize, people will see this money early next week,” Mnuchin told CNBC presenter Jim Cramer.
“People go out to spend this 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 that is being recycled in the economy.”
Mnuchin’s comments came hours before Congress was expected to vote to pass the $ 900 billion in Covid-19 emergency relief bill. The latest bill includes provisions similar to those in the original CARES Act, the $ 2.2 trillion aid package approved in March.
Individuals, including children, receive $ 600 in direct payments. A family of four could end up in $ 2,400. Payments are falling for people who made more than $ 75,000 in 2019. They would disappear completely for people who made more than $ 99,000 that year.
Treasury Secretary Steven Mnuchin listens during a Senate Banking Committee hearing on Capitol Hill, Washington, USA, December 1, 2020.
Al Drago | Reuters
Democrats said the bill would put $ 284 billion into small business loans from the Paycheck Protection Program. The new bill would also spend an additional $ 20 billion in small business grants and $ 15 billion on live event venues.
If passed, the legislation would include a federal weekly unemployment benefit of $ 300 and temporarily perpetuate pandemic programs that increase the eligibility of unemployment insurance.
Earlier this year, the finance minister had led negotiations with leading Democrats to negotiate a new stimulus agreement. After the 2020 election, Senate Republicans led by majority leader Mitch McConnell took over the deliberations.
For his part, Mnuchin advocated a more focused spending bill aimed at helping industries most affected by the pandemic, such as airlines and restaurants.
“Unemployment has fallen dramatically,” Mnuchin said in the telephone interview about “Squawk on the Street.” “This is much more focused now. I expect it to be needed in a short period of time, and I think this will help us through the recovery.”
That view likely contradicts 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 need to take more stimulus measures in the coming months as the US embarks on an expected winter of record-breaking Covid-19 infections. President-elect Joe Biden has called the current bill a down payment for further action.
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