Treasury Secretary Steven Menuchin told CNBC on Monday that Americans qualifying for direct payments under the new Kovid Relief Act could see that the money reached their bank accounts within a few days.
CNBC host Jim Cramer said, “The good news is that this is a very quick way to get money in the economy. I must emphasize: people are going to see this money early next week.”
“People go out and spend this money, and it helps small business and it helps more people get back to work,” he said. “So it is very fast, it is money that regroups in the economy.”
Mnuchin’s remarks came hours before Congress approved the $ 900 billion Kovid-19 relief bill. The latest bill includes provisions for those in the original CARES Act, a $ 2.2 trillion relief package approved in March.
Individuals including children will receive $ 600 in direct payments. A family of four can end up with $ 2,400. Payments for people earning more than $ 75,000 have been reduced during 2019. They will be completely out that year for people above $ 99,000.
Treasury Secretary Steven Menuchin listens during a Senate Banking Committee hearing on December 1, 2020 in Capitol Hill, Washington, US.
Al Daroga | Reuters
Democrats said the bill would put $ 284 billion in a paycheck protection program small business loan. The new bill would also direct $ 20 billion for small business grants and $ 15 billion for a live event venue.
If passed, the law would include a $ 300 federal weekly unemployment supplement and temporarily keep epidemic-era programs that expanded unemployment insurance eligibility.
The Treasury Secretary earlier in the year led negotiations with top Democrats to reach a new stimulus deal. After the 2020 elections, Senate Republicans held discussions under the leadership of Majority Leader Mitch McConnell.
For his part, Mnuchin supported a more targeted spending bill that focused efforts on helping epidemic-hit industries such as airlines and restaurants.
“Unemployment has come down,” Mnuchin said in a telephone interview “Squeak on the Street.” “It’s a lot more targeted now. I expect that will be needed in a short period of time, and I think it will take us through recovery.”
The dispute is likely with Democrats including Speaker of the House Nancy Pelosi and Senate Minority Leader Chuck Shumer, who have said the $ 900 billion bill is necessary, but not sufficient.
Democrats say Congress may need to pass more stimulus in the coming months as the US began expecting winters to record Kovid-19 infections. President-Elect Joe Biden called the current bill a down payment for further action.
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