If Democrat Joe Biden does wind up being inaugurated as president, despite what appears to be very obvious vote fraud, he’ll inherit a massive pile of COVID relief cash that he and his administration will be able to dispense virtually at will, via federal agencies that will fall under his Executive Branch country.
But Treasury Secretary Steve Mnuchin doesn’t want that to happen.
Why? What is the harm of handing a Biden administration some $455 billion in unspent CARES Act funds?
Because neither Mnuchin or President Donald Trump and tens of millions of taxpayers want to leave Biden with a stash of cash he can use to pay off political constituents – like bailing out blue states that have racked up billions in debt due to their lousy economic (and COVID-19 shutdown) policies.
Fox Business Network has more details:
Treasury Secretary Steven Mnuchin is expected to move $455 billion in unspent coronavirus stimulus money into a fund that the incoming Biden administration cannot deploy without congressional approval, Bloomberg reported.
The CARES Act funding will be placed in the agency’s General Fund, a Treasury Department spokesperson told Bloomberg. If Mnuchin’s successor — Biden is widely expected to pick former Federal Reserve Chair Janet Yellen to fill the role — wants to access that money, she will need to receive Congress’ blessing.
Last week, Mnuchin said he would not extend several emergency loan programs set up with the Federal Reserve, prompting a rare criticism from the U.S. central bank. While the lending facilities have been little used so far, they were viewed as a vital backstop for the pandemic-ravaged economy.
The money is part of the $500 billion Treasury Department fund created at the end of March by the CARES Act. The Treasury Fund set aside $46 billion for loans and loan guarantees to the airline industry, and the remainder was designated to support Fed lending programs to businesses, states and municipalities.
Democrats blasted the move, with one, Bharat Ramaurti, a former adviser to Sen. Elizabeth Warren of Mass., claiming the move was illegal.
“This is Treasury’s latest ham-handed effort to undermine the Biden administration,” he tweeted Tuesday. “The good news is that it’s illegal and can be reversed next year. For its part, the Fed should not go along with this attempted sabotage and should retain the CARES Act funds it already has.”
Uh, no, and no.
Treasury officials rejected his interpretation and said that Mnuchin’s interpretation ws the correct one.
Also, Republicans on the Senate Banking Committee were pleased.
“These facilities were to be temporary, to provide liquidity, and to cease operations no later than the end of 2020,” GOP lawmakers said in an open letter led by Committee Chairman Sen. Mike Crapo and Sen. Pat Toomey. “With liquidity restored, we strongly support Treasury Secretary Mnuchin’s decision to close these facilities by year-end, as Congress intended and the law requires, and the Federal Reserve’s decision to return unused CARES Act funds to Treasury.”