Treasury outlines stimulus, includes direct payments to households

The WSJ has obtained a memo from Treasury Secretary Mnuchin regarding the stimulus legislation the White House is negotiating with Congress:

The Trump Administration is proposing two rounds of direct payments to Americans totaling $500 billion to respond to the economic impact of the coronavirus outbreak, with the amount of each check based on family size and income…

The direct payments in each round would begin on April 6 and May 18 as part of the potentially $1 trillion stimulus package being pulled together by the administration.

The IRS has the ability to deliver payments to many people via direct deposit and is working with electronic payment providers on other ways to deliver the payments electronically, Treasury Secretary Steven Mnuchin said in an interview on CNBC on Wednesday.

“That is money that we can get to hardworking Americans right away,” Mr. Mnuchin said.

Personally, I think limiting it by income is a bad idea, because you are going to penalize people that earn a lot but are essentially middle class because they live in a high-cost area. You are talking about some of the places with the highest levels of people affected by the pandemic and panic.

The proposal includes $50 billion for a lending facility to support the airline industry, with requirements for specified continuation of service and limits on executive compensation until the loans are repaid. Treasury would set the terms on the loans, which would be secured by collateral specified by the agency, according to the memo.

The proposal also includes $150 billion for what the memo calls “other severely distressed sectors of the U.S. economy.”

Should be interesting to find out which sectors they declined to name but intend to bail out.

I can’t imagine testing the software that calculates what each person is due and blasts direct deposits. Not fucking that up alone is a good reason to make the amount distributed a uniform number.

In Florida, Governor DeSantis authorized a small business lending facility that will offer small business owners bridge loans up to $50,000 in anticipation of federal aid.

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