Former President Donald Trump’s administration has paved the way for the federal government to quickly deliver the $ 1,400 stimulus checks in President Joe Biden’s $ 1.9 billion bailout plan by leaving a massive pile of cash behind in preparation for further spending.
Under the Trump administration, then-Finance Minister Steven Mnuchin tentatively increased the government’s borrowing and raised more than $ 1 trillion, according to Politico. The rainy day fund has been piled up before possible future relief measures due to the uncertainty of the economy amid the pandemic.
“Early in the Covid crisis, I made sure we always had enough funds on hand to be prepared for the necessary economic response,” Mnuchin told the outlet by email.
When Americans began receiving the $ 1,400 stimulus checks in their bank accounts this weekend, some were surprised at how quickly the Internal Revenue Service (IRS) was able to deliver the first series of direct payments.
“Well, it was fast! Stimulus check arrived and my internet banking services did not crash this time!” tweeted Sara Ackerson of Portland, Oregon.
Joe Raedle / Getty Images
In addition to the assurance that the checks will go out quickly, the cash pile that Trump leaves behind also means that the Treasury may not need to draw up loans to pay for Biden’s extensive legal aid legislation.
“There are enormous implications for everyone else, but the Treasury was in favor of this nine months ago,” said Lou Crandall, chief economist at research firm Wrightson ICAP.
The House passed the stimulus package largely according to party lines in a final vote of 220-211 earlier this week, with all Republicans and one Democrat – Rep. Jared Golden of Maine – Against the Bill. Biden signed the measure Thursday afternoon.
Over the past week, Republicans have stepped up their attacks at the high price attached to spending on aid. However, the massive pile of cash left behind by Trump shows that his own government expected the economy to probably need another big boost.
Recent polls suggest that the stimulus package has received significant dual support among voters. A Wednesday Morning Consult / Politico poll found that 74 percent of voters, including 59 percent of Republicans, support the bill. A survey by Quinnipiac University in February found that $ 1,400 direct payments were the most popular provision among IDP voters, with 64 percent supporting it.
In an interview with PBS NewsHour last Thursday, Senate Majority Leader Mitch McConnell said the favorable public response was “not surprising” as voters do not really know what’s in the bill.
“The thought that many Americans get a $ 1400 check, why would they not want it?” he said. “What they do not know is how much the bill has nothing to do with the pandemic.”
Newsweek came out to McConnell’s office for comment.