Treasury proposal: $500B to Americans starting April

WASHINGTON » By a sweeping bipartisan tally, the Senate on Wednesday sent President Donald Trump a $100 billion-plus bill to boost testing for the coronavirus and guarantee paid sick leave for millions of workers hit by it. But lawmakers and the White House had already turned their focus to the administration’s far bigger $1 trillion plan to stabilize the economy as the pandemic threatens financial ruin for individuals and businesses.

Details on Trump’s economic rescue plan remain sparse — and it’s sure to grow with lawmaker addons — but its centerpiece is to dedicate $500 billion to start issuing direct payments to Americans by early next month. It would also funnel cash to businesses to help keep workers on payroll as widespread sectors of the $21 trillion U.S. economy all but shut down.

In a memorandum, the Treasury Department proposed two $250 billion cash infusions to individuals: a first set of checks issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size.

The Treasury plan, which requires approval by Congress, also recommends $50 billion to stabilize the airlines, $150 billion to issue loan guarantees to other struggling sectors, and $300 billion for small businesses. The plan appears to anticipate that many of the loans would not be repaid.

Taken together, the administration plan promises half of the $1 trillion to families and individuals, with the other half used to prop up businesses and keep employees on payroll.