Americans will receive stimulus checks as soon as next week, according to Treasury Secretary Steven Mnuchin.
He said that those who qualify for direct payments in the new Covid stimulus bill could see that cash arrive in their bank accounts in a matter of days.
“The good news is this is a very, very fast way of getting money into the economy. Let me emphasize: People are going to see this money at the beginning of next week,” Mnuchin said in an interview with CNBC host Jim Cramer.
“So it’s very fast, it’s money that gets recirculated in the economy,” he added. “People go out and spend this money, and that helps small business and that helps getting more people back to work.”
Mnuchin’s statements came hours before Congress’ expected vote to seal the $900 billion Covid-19 relief bill.
The US Senate has passed a coronavirus stimulus package worth $2 trillion, the largest economic stimulus in the history of the country.
The main provisions of the bill aim to provide economic relief to households and small businesses, including payments of $600 to most Americans, 11 weeks of federal unemployment benefits, an inclusion of $284 billion into the Paycheck Protection Program, $300 per week for enhanced unemployment insurance benefits, $25 billion for rental assistance and an eviction moratorium extension, $82 billion for education providers like schools and colleges, including aid to help reopen classrooms safely, $7 billion to widen broadband access to help Americans connect remotely, and $10 billion to help with child care assistance.
Democrats said that the deal is just the start and that they will call for more legislation once Biden takes office.
"It is packed with targeted policies that help struggling Americans who have already waited entirely too long," Senate Majority Leader Mitch McConnell said.
In a joint statement, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said, "We are going to crush the virus and put money in the pockets of the American people."
Individuals including children can expect $600 in direct payments. A family of four could get $2,400. The payments drop for people who made more than $75,000 during 2019. They would further decline for people who made above $99,000 that year.
Mnuchin preferred more targeted spending legislation that prioritized efforts on helping industries hardest affected by the pandemic like airlines and restaurants.
“Unemployment has come way down,” Mnuchin said in the telephone interview on “Squawk on the Street.” “This is now much more targeted. I expect it’s needed in a short period of time, and I think this will take us through the recovery.”
The stimulus deal came after months of delays from legislators over the size and scope of the relief package.
Meanwhile, House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer said the package “delivers urgently needed funds to save the lives and livelihoods of the American people as the virus accelerates”.
While the bill did not include substantial support for local governments, a priority among Democrats, Senator Schumer said it will still indirectly help local governments by providing funds for schools, Covid-19 testing, and other expenses.
