On The Money: Trump signs $484B coronavirus relief package | CBO projects 39.6 percent quarterly GDP drop, $3.7T deficit | IRS says it issued $158B in coronavirus payments through April 17
Happy Friday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
See something I missed? Let me know at email@example.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here.
THE BIG DEAL — Trump signs $484 billion coronavirus relief package: President TrumpDonald John TrumpNew Mexico governor extends stay-at-home order: ‘We’re not ready to ease up’ Coronavirus culture war over reopening economy hits Capitol Hill Challenge China and the WHO—but not while the pandemic rages MORE on Friday signed legislation providing $484 billion to replenish a popular small business lending program and support hospitals and COVID-19 testing amid the coronavirus pandemic.
The Hill’s Morgan Chalfant has more here.
More on coronavirus relief funding:
LEADING THE DAY
CBO projects 39.6 percent quarterly GDP drop, $3.7 trillion deficit: The economy will shrink at an annualized rate of 39.6 percent in the second quarter, according to the latest projections from the nonpartisan Congressional Budget Office (CBO), its first to take into account the effects of the coronavirus pandemic.
“The economy will experience a sharp contraction in the second quarter of 2020 stemming from factors related to the pandemic, including the social distancing measures put in place to contain it,” CBO Director Phillip Swagel wrote.
- The CBO projects that things will rebound somewhat in the third quarter, with 23.5 percent annualized growth, followed by a projection of 10.5 percent growth in the final quarter of the year.
- All in all, it predicts the economy will shrink by 5.6 percent for the year, and return to growth of about 2.8 percent in 2021.
- But, Swagel added, “challenges in the economy and the labor market are expected to persist for some time.”
The Hill’s Niv Elis tells us why.
IRS says it issued $158 billion in coronavirus payments through April 17: The Internal Revenue Service (IRS) said Friday that it issued about 88 million coronavirus relief payments to households through April 17, with the payments totaling almost $158 billion.
The new figures are in line with comments Treasury Secretary Steven Mnuchin made last week about the IRS having already issued more than 80 million payments via direct deposit.
The agency has issued additional payments this week, including paper checks. The IRS plans to issue additional payments in the coming days and weeks, including to people who are not required to file tax returns or receive certain federal benefits, such as Social Security.
GOOD TO KNOW