Treasury races to send out stimulus payments

Billions in aid being paid in presidential transition

WASHINGTON — The Trump administration is scrambling to send one-time stimulus payments to millions of Americans starting as soon as this week, as the U.S. government races to implement a $900 billion coronavirus aid package that President Donald Trump signed after days of delays.

The schedule corresponds with Treasury Secretary Steven Mnuchin’s earlier promise to dispatch stimulus checks to families this week — a plan later thrown into

turmoil after Trump initially refused to sign the stimulus package.

Trump had attempted to secure last-minute changes to the bill after it passed the House and the Senate, but his own party did not support some of his demands and he relented Sunday.

The Treasury Department is able to move more swiftly than usual to deposit checks for as much as $600 into Americans’ bank accounts as a result of its earlier work this spring, when it disbursed larger sums under an earlier stimulus program. Americans who previously obtained their federal tax refunds through direct deposit were among the first to receive their payments at the time. Those receiving paper checks had a longer wait for the aid.

The electronic deposits could go out Wednesday and Thursday in large tranches, according to a senior official at the Internal Revenue Service, who spoke on the condition of anonymity to describe the agency’s early plans. It remains unclear, however, if other obstacles might ultimately result in delays — particularly given the holiday week and its impact on staffing at major banks. A senior Treasury official, who also spoke on the condition of anonymity, confirmed that the agency was sticking to the same targeted timeline as Mnuchin recently outlined — but signaled that the timing could change.

The last-minute rush to send the stimulus checks reflects the gargantuan task facing the U.S. government as it aims to deliver new financial assistance quickly enough to avert a deeper dip in an already battered U.S. economy.

Federal agencies had been bracing for the prospect of an abrupt government shutdown. Now, the Trump administration is racing to distribute a wide array of funds, including those that aim to boost cash-strapped businesses and help unemployed workers at risk of losing their benefits. Trump’s earlier standoff with Capitol Hill over the stimulus — which cleared the House and Senate with bipartisan support — has since jeopardized the swift delivery of some of those funds.

“While it’s a huge relief that the bill is being signed, Donald Trump’s tantrum has created unnecessary hardship and stress for millions of families,” Sen. Ron Wyden, D-Ore., said in a statement late Sunday.

The uncertainty about the programs reflects the urgent circumstances of the country’s recent economic decline. Many labor groups, businesses and state and local governments had pleaded with Congress and the White House since the summer to strike a deal on new stimulus funds. Programs authorized under the government’s last relief package, the $2 trillion CARES Act, began to expire in July.

Now, the process of distributing the $900 billion is set to start in the final days of the Trump administration, just as President-elect Joe Biden prepares to enter the White House. Trump, Vice President Mike Pence and Mnuchin are all vacationing this week, though a Treasury representative previously said Mnuchin and Trump have been in contact.

With the stimulus payments, the Treasury Department and IRS think they can move swiftly after ironing out all the glitches they encountered implementing the CARES Act in spring. Since then, more Americans have filed their tax returns electronically, meaning the government is expected to issue far fewer paper checks, according to the senior IRS official. Those who do receive paper checks are likely to see Trump’s name printed on them, similar to what occurred earlier this year, the source added.

In addition to the emergency relief funds, the newly enacted law directs the government to appropriate $20 billion for coronavirus testing, for example, and $8 billion for vaccine distribution. It allocates $13 billion in fresh money to help families afford food, and $10 billion to help parents cover the cost of child care.

There is new aid to boost arts programs and expand the availability of high-speed Internet access. And lawmakers set aside billions more to ensure that families can stay in their homes — and transit agencies could literally keep the trains running on time.

Even the mere availability of relief already appeared to offer the economy a slight jolt Monday, as Southwest Airlines announced it would not need to slash its workforce or reduce wages after Trump opted to sign the legislation. The Dow Jones industrial average rose 204 points, or 0.7 percent, as investors cheered the prospect of stimulus-aided economic growth.