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Treasury Secretary Mnuchin expects direct stimulus checks to be released next week, says he 'couldn't be more pleased' about deal

Dec 21, 2020, 23:04 IST
Business Insider
Jabin Botsford/The Washington Post/Getty Images
  • Americans who qualify for the next set of economic relief payments could see direct deposits arrive as soon as next week, Treasury Secretary Steven Mnuchin said Monday.
  • Congressional leaders on Sunday struck a deal on a $900 billion stimulus bill that includes $600 payments, bolstered unemployment benefits, and small-business aid.
  • Mnuchin told CNBC that he "couldn't be more pleased" with the new stimulus deal and that direct deposits could hit accounts "at the beginning of next week."
  • "The good news is this is a very, very fast way of getting money into the economy," Mnuchin added.
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Congressional leaders on Sunday reached an agreement on a $900 billion stimulus deal after months of legislative gridlock. The measure includes a second round of direct payments of up to $600 for qualifying adults and children.

Mnuchin told CNBC on Monday morning that he "couldn't be more pleased" with the legislation and that Americans could start receiving direct deposits "at the beginning of next week."

"The good news is this is a very, very fast way of getting money into the economy," Mnuchin said, adding, "People go out and spend this money, and that helps small business, and that helps getting more people back to work."

Under the deal, adults and children would receive up to $600. Like with the first round of checks, the payments would start to shrink for people who made more than $75,000 in 2019, and those who earned more than $99,000 won't receive a payment.

Read more: Here's what to know about the $900 billion package Congress plans to pass this week with checks for individuals and a boost to unemployment aid

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It's likely that the new round of payments could be rolled out faster than the first, as the IRS already has the tax information necessary to distribute the funds. The $1,200 payments established in the CARES Act took weeks to reach some Americans because of a backlog of tax-return reviews. There were even longer delays for mailed checks.

The stimulus package also includes $300 weekly federal unemployment benefits, funds for the Paycheck Protection Program, and aid for schools and universities. It comes as COVID-19 cases have surged to record highs and as economic indicators have pointed to a weakening pace of recovery.

The House is expected to vote on the package on Monday. The White House has indicated that it backs the compromise; a spokesman, Ben Williamson, told Politico on Sunday that the administration looked forward to Congress sending a bill to President Donald Trump's desk "imminently for signature."

Read more: BANK OF AMERICA: Buy these 26 cheap and fundamentally rock-solid stocks before the economic rebound sends them soaring in 2021

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