The US Government has proposed to send US$500 billion (AUD$859 billion) in cheques to individual Americans as part of a USD$1 trillion (AUD$1.7 trillion) economic support package.
In a memorandum issued today, the Treasury has called for two $250 billion cash infusions to individuals.
The first set of checks issued would start from 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 US$50 billion (AUD$85bn) to stabilise the airlines, US$150 billion (AUD$257bn) to issue loan guarantees to other struggling sectors, and US$300 billion (AUD$515bn) to for small businesses.
The plan appears to anticipate that many of the loans would not be repaid.
The plane comes as analysts have warned the country is surely entering a recession, the government is grappling with an enormous political undertaking with echoes of the 2008 financial crisis.
At the Capitol on Wednesday, Senate Majority Leader Mitch McConnell prepared his colleagues for unprecedented steps to deal with the epidemic’s body slam to the economy.
“I will not adjourn the Senate until we pass a far bolder package,” McConnell said. “We aren’t leaving until we deliver.”
Economists have so far doubted that the massive economic rescue package being drafted would enough to stop millions of jobs losses, even if in the short term.
Meanwhile, Senate Democrats produced their own $750 billion proposal, which includes $400 billion to shore up hospitals and other emergency operations in response to the global pandemic and $350 billion to bolster the safety net with unemployment checks and other aid to Americans.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.