Mnuchin and Powell ask Congress to reallocate $300B in unused COVID-19 funds to aid households, small businesses


According to, the leftover funds from the CARES Act include:

  • More than $130 billion in funds left from the expired Paycheck Protection Program (PPP)  that was never allocated
  • $75 million in funds remaining from the Fed’s Main Street Lending Program
  • Around $200 billion in funds allocated to the Treasury to support central bank loans were also not committed

Mnuchin and Powell express a sense of urgency

The ongoing standoff in Congress over a new stimulus package prompted Mnuchin and Powell to tell lawmakers that it is urgent to reallocate those monies. The Federal Reserve Chairman claimed that reallocating those unused funds could make a difference amid a slower economy.

He said households are spending leftover money from their stimulus checks and unemployment benefits. He added that “the risk is they will go through that money, ultimately, and have to cut back on spending and maybe lose their home or their lease.”

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Earlier this month Trump signed an eviction moratorium. The CDC ordered to stop all evictions until December 2020. The Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19 is a temporary but effective measure to help those that are struggling with paying rent. 

The economy is recovering but still fragile

The top U.S. economic policymakers were attempting again to open the door to further aid for small businesses and individual households hit hardest by the coronavirus pandemic.