Mnuchin puts $ 455 billion in COVID-19 relief funds beyond the reach of his successor

Secretary of the Treasury Steven MnuchinSteven Terner MnuchinThe Hill’s Morning Report – Presented by the Embassy of the United Arab Emirates in Washington, DC – Trump OKs transition; Biden exploits Treasury and state money experiment: Democrats accuse Mnuchin of sabotaging the economy in conflict with the Fed | Trump administration’s proposal targets bank promises to avoid fossil fuel financing | JPMorgan: Economy to shrink in first quarter due to COVID-19 spike Democrats accuse Mnuchin of sabotaging the economy in dispute with Fed PLUS transferred $ 455 billion in COVID-19 relief from the Federal Reserve to the General Treasury Fund, making it more difficult for his successor to access emergency funding.

Mnuchin said last week he was closing a handful of the Fed’s emergency lending facilities, a move the central bank opposed in a rare critical statement. These facilities, although little used during the pandemic, were seen as boosting confidence in financial markets.

The amount returned by Mnuchin was part of a $ 500 billion allocation in the $ 2.2 trillion CARES Act that President TrumpDonald John Trump Minnesota certifies victory for Biden Trump tells allies he plans to forgive Michael Flynn: report Republican John James concedes in Michigan Senate race MORE signed at the end of March.

Mnuchin then asked the Fed to return the funding, which Congress allocated to cover potential losses from the pandemic, saying the CARES law sets a legal deadline for facilities to expire by the end of the year. year.

Putting the money back in the general fund would make it harder for the former Fed chairman Janet YellenJanet Louise Yellen The Hill’s Morning Report – Presented by the Embassy of the United Arab Emirates in Washington, DC – COVID-19 fears surround Thanksgiving Biden holiday: ‘Tough decision’ to staff House administration, Senate members Biden Cabinet largely chooses to unify Democrats – so far, President elect Joe bidenJoe BidenMinnesota certifies Biden victory Trump tells allies he plans to forgive Michael Flynn: Biden report says staff spoke with Fauci: ‘He’s been very, very helpful’The announced choice to lead the Treasury Department next year, to deploy the funds, and may require another act of Congress to do so.

Bharat Ramamurti, former adviser to Sen. Elizabeth warrenElizabeth WarrenBiden: “Tough Decision” to Staff Administration with House Staff and Senate Members The Hill’s Morning Report – Presented by the UAE Embassy in Washington, DC – Trump’s Transition OK; Biden Harnesses Treasury, State’s Money Experience: Biden Appoints Yellen as Treasury Secretary | The “COVID cliff” looms | Democrats face pressure to support more modest stimulus (D-Mass.) Who is now a member of the congressional committee appointed to oversee the funds, called Mnuchin’s decision “illegal.”

“This is the Treasury’s latest clumsy effort to undermine the Biden administration,” he said said on twitter.

Neither the Treasury Department nor Biden’s transition team immediately responded to a request for comment.

Republicans on the Senate Banking Committee applauded Mnuchin, saying he was faithfully following the intent and letter of the law.

“The intention of Congress was clear: these facilities were to be temporary, provide liquidity and cease operations no later than the end of 2020,” GOP lawmakers said in a letter led by the committee chair. Mike CrapoMichael (Mike) Dean Crapo Democrats accuse Mnuchin of sabotaging the disputed economy with Fed Shelton’s appointment to the Fed on the razor’s edge amid coronavirus-fueled absences. (Idaho) and Sen. Pat ToomeyPatrick (Pat) Joseph Toomey Court of Appeals declares NSA bulk telephone data collection illegal Dunford steps down as chair of coronavirus watch group GOP senators are pushing for swift and partial reopening of the PLUS economy (Pennsylvania.).

“With liquidity restored, we strongly support Secretary of the Treasury Mnuchin’s decision to shut down these facilities by the end of the year, as Congress intended and the law requires, and the Reserve’s decision federal government to return unused funds from the CARES law to the treasury, ”they added.

GOP senators said Congress could take action to “revive” the facilities if the need arises. But Congress has struggled to pass extensions for key provisions of the CARES Act, which expired on July 31, and congressional leaders have remained deadlocked on a new coronavirus relief bill for decades. month.

Updated at 13:35