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White House, Senate reach historic $2 trillion stimulus package

White House, Senate reach historic $2 trillion stimulus package

Posted March. 26, 2020 07:47,   

Updated March. 26, 2020 07:47


White House and Senate leaders agreed Wednesday a massive 2-trillion-dollar stimulus deal to help the economy hit by the novel coronavirus.

"After days of intense discussions, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic,” Senate Majority Leader Mitch McConnell told reporters at 1:30 a.m. on Wednesday. Chuck Schumer, Democratic senator from New York, also commented that the “support would be sizable and executed quickly.” They worked with White House Director of Legislative Affairs Eric Ueland and Treasury Secretary Steven Mnuchin to finalize the deal.

The emergency stimulus package is designed to save companies from bankruptcy and massive unemployment risks and support workers with financial struggles. It accounts for 10 percent of the country's gross domestic production (GDP) and is the largest of its kind.

Details of the act were not disclosed, but The Washington Post said that the plan included cash payouts of 1,200 dollars per adult. A 367-billion-dollar loan program is also included to help small businesses impacted by the coronavirus outbreak. Meanwhile, 500 billion dollars has been secured to support industries such as the airline industry impacted from the virus as well as state governments. Audit committees will be formed to oversee financial support to businesses. Financial support will be also extended for unemployment insurance and medical institutions.

Right after congress has agreed to swiftly sign and implement the package, the Dow Jones index increased 11.37% on the New York Stock Exchange on the previous day amid growing expectations for the stimulus package, the largest since 1933.

Yong Park parky@donga.com