US plans to give $1000 in cash to adults, $500 to kids amid Covid-19 crisis

The Trump administration is planning to give $1000 per adult and $500 per child in direct money transfer as part of its efforts to help Americans mitigate the economic impact of the coronavirus crisis.

US Treasury Secretary Steven Mnuchin on Thursday told Fox News that the government would transfer cash of $1,000 per adult and $500 per child as part of its massive $1 trillion stimulus package.

The cash transfer plan alone is expected to cost $500 billion.

"So, for a family of four, that's a $3,000 payment. As soon as Congress passes this, we get this out in three weeks. And then six weeks later, if the president still has a national emergency, we'll deliver another $3,000. So that's a lot of money to hardworking Americans who are at home for no fault of theirs," Mnuchin said.

Noting that the administration has announced a trillion-dollar plan, Mnuchin said it includes a $300 billion package for small businesses.

That money, he said, is needed to be used to hire people, keeping people on the payroll. And if the firms do this, there will be loan forgiveness on that afterward, he said.

The government wants 40 per cent of the private workforce employed, he said.

"And the third component is $200 billion that we can use for more facilities with the Fed, like we've been doing, for secured lending to airlines and for other critical industries," he said.

Asserting that President Donald Trump is determined to go big and support the American economy, Mnuchin said for big companies, like the airlines, the government is planning secured loans on market terms.

"So, we'll see whether that includes equity or doesn't include equity. We're not going to force things on people. But people who need liquidity, we're going to make sure that the taxpayers are compensated fairly," he asserted.

Meanwhile, President Trump in a press conference at the White House said in worst case scenario, there could be large scale job losses.

He, however, exuded confidence that that is unlikely to happen.

"You know worst-case scenario you would have terrible job numbers. If we can get this thing wrapped up and finished earlier things will go very nicely," Trump said.

"I think the economy is going to be fantastic," he said in response to a question.