TOPLINE
Treasury Secretary Steve Mnuchin is taking an aggressive stance on the fifth coronavirus stimulus package, while the rest of the Trump administration remains in conflict over a way forward, all as Congress prepares for a frantic push in the next few weeks for legislation to hit the target. .
Steven Mnuchin, U.S. Secretary of the Treasury, speaks during a House Small Business Committee hearing on … [+]
KEY FACTS
The secretary asked Congress to approve a stimulus package before the end of the month during testimony in front of the House Small Business Committee on Friday: “Certain industries, such as construction, are recovering rapidly, while others, such as retail and travel face longer-term impacts and will require additional relief, “he said.
There is bipartisan support for a fifth bill, but Congress has only 11 days from July 20 to 31 to meet in a stimulus package before lawmakers break an August recess.
On Friday, Mnuchin called on Congress to extend the PPP program, which distributed billions of dollars in loans to American companies, and urged lawmakers to consider automatically forgiving small business loans (forgiveness currently depends on whether the company retains its employees).
The secretary has also expressed support for another round of stimulus checks and even to extend the expanded $ 600 unemployment program, which many Republicans continue to oppose, fueling an “epic shock” within the White House on the way forward. Fox Business reported Thursday.
While Mnuchin urges Congress to extend the PPP program and the deadline for the expanded unemployment program, other Trump Administration officials warn that the next bill “must” include a payroll tax exemption, a more conservative proposal. that President Trump has repeatedly endorsed, but Congress has so far rejected.
Mnuchin, who until now has served as the lead negotiator with Congress on stimulus bills, is privately “prioritizing” a next round of stimulus controls over payroll tax reduction, according to the Washington PostBecause she believes it is unrealistic to expect House Speaker Nancy Pelosi (Democrat of California) to endorse such a proposal.
Crucial quote
During testimony on Friday, Mnuchin said that the next stimulus package should “extend the PPP, but more specifically for smaller companies and those that are particularly affected, such as restaurants, hotels and other travel and hospitality businesses.” He also added that he would like to see companies have the opportunity to reapply for PPP loans, but that it should rely on a “proof of income.”
News pin
Millions of unemployed Americans will lose a $ 600 boost to state unemployment payments that is part of a coronavirus relief program that will expire later this month.
Tangent
Mnuchin said he did not know if anyone in President Trump’s family or company took loans from the Paycheck Protection Program: “I do not know if they took loans or not,” he said.
What to look at
A clash over federal aid to state and local governments. Democrats and Republicans disagree on whether Congress should provide more relief to states reeling from the pandemic’s impact on state tax revenues. “If there were financial conditions that states had gotten into this, it is not the role of the federal government to rescue them from that,” Mnuchin said on Friday. “I think the Trump Administration should be kept to the same standard as Congress on PPP.”
Disclosure: Forbes Media LLC confirmed on July 6 that it received a $ 5 million to $ 10 million Check Protection Program loan on April 15.
Further reading
Mnuchin asks to extend PPP but target it at ‘smaller companies’ and restaurants, hotels (Marketwatch)
Mnuchin suggests automatic forgiveness of loans from the paycheck protection program (Wall street journal)
Mnuchin asks Congress to approve more stimuli this monthNew York Times)
