Biden’s $1,400 Stimulus Checks Aided by Trump Leaving $1Tn Cash Pile for Further Relief Spending
Former President Donald Trump’s administration paved the way for the federal government to quickly deliver the $ 1,400 stimulus checks in President Joe Biden’s $ 1.9 trillion US bailout plan by leaving a massive pile of money to prepare for further relief spending .
Under the Trump administration, then Treasury Secretary Steven Mnuchin preemptively increased the government’s borrowing and raised well over $ 1 trillion, according to Politico. The Regentag fund was amassed in advance of possible future relief efforts due to the uncertainty of the economy amid the pandemic.
“Early on in the Covid crisis, I made sure that we always had enough funds available to be prepared for the necessary economic reactions,” Mnuchin told the sales outlet in an email.
When Americans started receiving the $ 1,400 stimulus checks in their bank accounts this weekend, some expressed surprise at how quickly the Internal Revenue Service (IRS) was able to deliver the first batches of direct payments.
“Well, that was quick! The stimulus check arrived and didn’t crash my online banking this time!” tweeted Sara Ackerson from Portland, Oregon.
Former President Donald Trump speaks at the Conservative Political Action Conference at the Hyatt Regency on February 28, 2021 in Orlando, Florida.
Joe Raedle / Getty Images
The pile of cash left by Trump not only ensures checks run out quickly, but also means the Treasury Department may no longer need to borrow to pay Biden’s sweeping relief laws.
“There’s a huge impact on everyone else, but the Treasury Department was nine months ago,” said Lou Crandall, chief economist at Wrightson ICAP.
Parliament passed the stimulus package in a final vote between 220 and 211 earlier this week with all Republicans and one Democrat – Rep. Jared Golden of Maine – against the bill. Biden signed the measure on Thursday afternoon.
Over the past week, Republicans have stepped up their attacks at the high price associated with the aid spending. However, Trump’s massive pile of money shows that his own administration had anticipated that the economy would likely need another massive rebound.
Recent polls show that the stimulus package has received substantial support from both parties among voters. A Wednesday Morning Consult / Politico poll found that 74 percent of voters, including 59 percent of Republicans, supported the bill. A February poll by Quinnipiac University found the $ 1,400 direct payments was the most popular provision among GOP voters, backed by 64 percent.
In an interview with PBS NewsHour last Thursday, Senate Minority Chairman Mitch McConnell said the positive response from the public was “not surprising” as voters don’t really know what the bill is about.
“The thought of a lot of Americans getting a check for $ 1,400, why shouldn’t they like it?” he said. “What they don’t know is how much of the bill has nothing to do with the pandemic.”
Newsweek reached out to McConnell’s office for comment.