The White House announced major moves in coordination with the Federal Reserve to mitigate economic damage from the coronavirus pandemic which has brought some industries to a near halt.
In a briefing Tuesday, Treasury Secretary Steven Mnuchin announced he had approved the Fed’s emergency action to buy short-term loans from banks and companies and committed the Treasury to provide $10 billion in loans.
Before leaving the briefing to continue negotiations with senators, he also announced that the administration is working on a plan to send some Americans checks to help ease the financial burdens they are facing amid the outbreak.
“We are looking at sending checks to Americans immediately … Americans need cash now and the president wants to get cash now. And I mean now, in the next two weeks,” Mnuchin said. “The president has instructed me that this is no fault to American workers. For medical reasons, we are shutting down parts of this economy. We are going to use all the tools we have.”
For the tools he does not have, Mnuchin said he is going to Congress. Mnuchin, who relayed that he spoke to House Speaker Nancy Pelosi today, said the amount that will be sent to Americans “may be bigger than what’s out in the press” but that millionaires will likely not receive those payments. Mnuchin said the administration is looking to get cash in Americans’ pockets directly, rather than pushing for payroll tax cuts that will take months.
The Treasury Secretary also said the president had instructed him to allow tax payment deferrals, interest and penalty-free, for 90 days. Individuals can defer up to $1 million and corporations can defer up to $10 million, though he encouraged those who can file taxes to do so now to get tax refunds.
“We’re going big,” President Donald Trump said, adding that the administration will ask Congress for an $850 billion stimulus package. He urged Americans to follow guidelines to stay inside and cautioned against hoarding food.
The president also said the administration will coordinate with states and ask the Army Corps of Engineers for help in building makeshift hospitals if that becomes necessary.
Markets reacted positively to the president’s remarks Tuesday, up 300 points a few minutes into his remarks after sinking Monday. Just a few minutes later, Mnuchin said there are no plans to close markets but “we may get to a point where we shorten the hours.”
Additionally, the Families First Coronavirus Response Act made it to the Senate today, a bill that GOP Senators and the White House are reportedly trying to link with the president’s request for $850 billion in stimulus spending. That could create one large package for the Senate to approve in the coming days.
Healthcare Updates
During the briefing, health officials said the healthcare industry is in desperate need of ventilators, N95 masks, and help in minimizing the outbreak’s spread. The federal government will be expanding telehealth by lifting HIPAA restrictions and expanding Medicare patient access, asking construction companies to donate N95 masks and refrain from placing new orders, and reminding young people to stay indoors.
“We’re asking the younger generations to stop going out in public places,” White House Coronavirus Response Coordinator Deborah Birx said. She also suggested canceling elective surgeries when possible.
Trump again said the federal government has ordered a “massive number of ventilators,” although it is unclear exactly how many have been.
He also announced the Food and Drug Administration yesterday approved a regulatory change to give states the ability to go forward with lab-developed tests within their borders.
