Former President Donald Trump’s administration paved the way for the federal government to quickly deliver President Joe Biden’s $ 1.4 trillion US $ 1.4 trillion bailout check, leaving behind a huge pile of cash. in preparation for further aid spending.
Under the Trump administration, then Treasury Secretary Steven Mnuchin preemptively increased government loans and accumulated well over $ 1 trillion, according to Politico. The rainy day fund was built up before possible future relief measures due to the uncertain economy in the midst of the pandemic.
“At the start of the Covid crisis, I made sure that we always had enough funds to be prepared for any necessary economic response,” Mnuchin told the vehicle via email.
When Americans started receiving $ 1,400 stimulus checks into their bank accounts this weekend, some were surprised at how quickly the Internal Revenue Service (IRS) was able to deliver the first batch of direct payments.
“Well, that was quick! The stimulus check came and it didn’t crash my online bank this time!” tweeted Sara Ackerson of Portland, Oregon.
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In addition to ensuring that checks come out quickly, the pile of money left by Trump also means that the Treasury may not need to increase loans to pay Biden’s extensive bailout legislation.
“There are huge implications for everyone else, but the Treasury was ahead of it nine months ago,” said Lou Crandall, chief economist at research firm Wrightson ICAP.
The House narrowly approved the stimulus package largely along the lines of the party in a final vote of 220-211 earlier this week, with all Republicans and a Democrat – the deputy. Jared Golden of Maine – opposing the bill. Biden sanctioned the measure on Thursday afternoon.
Last week, Republicans stepped up their attacks with the high price associated with spending on humanitarian aid. However, the huge pile of money left by Trump shows that his own government had anticipated that the economy would probably need another big boost.
Recent polls show that the stimulus package has gained significant bipartisan support among voters. A Wednesday Morning Consult / Politico poll found that 74 percent of voters, including 59 percent of Republicans, supported the project. A February Quinnipiac University poll found that direct payments of $ 1,400 were the most popular provision among Republican voters, with 64% support.
In an interview with PBS NewsHour Last Thursday, Senate minority leader Mitch McConnell said the public’s favorable reaction “was not surprising” as voters don’t really know what is in the bill.
“The thought of many Americans getting a check for $ 1,400, why wouldn’t they like that?” he said. “What they don’t know is how much of the project has nothing to do with the pandemic.”
Newsweek contacted McConnell’s office for comment.