Published 18:55 IST, March 20th 2020
Coronavirus: US plans $1000 cash transfer per adult in $1 trillion stimulus package
US Treasury Secretary Steven Mnuchin said that the Trump administration is planning to $1000 per adult and $500 per child amid the coronavirus crisis.
US Treasury Secretary Steven Mnuchin said that the Trump administration is planning to $1000 per adult and $500 per child amid the coronavirus crisis. Speaking to Fox News on March 18, the top White House official said that the direct money transfer will be a part of $1 trillion stimulus package that the administration has announced to absorb the shockwaves of the economic downturn due to the pandemic.
"So, for a family of four, that's a $3,000 payment. As soon as Congress passes this, we get this out in three weeks. And then six weeks later, if the president still has a national emergency, we'll deliver another $3,000,” said Mnuchin.
The White House is seeking a stimulus package of $1 trillion to battle the economic impact and the plan includes $300 billion for small businesses. Mnuchin said that the third component of the package is of $200 billion that can be used for more facilities with the Fed for secured lending to airlines and for other critical industries.
The announcement came after US President Donald Trump signed Families First Coronavirus Response Act. The Act provides for paid sick leave, paid family and medical leave, enhanced Unemployment Insurance, food security initiatives and free and widespread testing.
World Bank increases package
With economies hit hard due to the virus, the World Bank Group has approved an increased $14 billion package to help companies and countries prevent, detect and respond to the rapid spread of coronavirus. The original response package of $12 billion announced on March 3 included $6 billion in financing by the World Bank to strengthen health systems and another $6 billion by IFC to help provide a lifeline for micro, small and medium-sized enterprises.
“It’s essential that we shorten the time to recovery. This package provides urgent support to businesses and their workers to reduce the financial and economic impact of the spread of COVID-19,” said David Malpass, president of the World Bank Group, in a statement.
Updated 18:46 IST, March 20th 2020