Welcome, everybody. Today, i will our select subcommittee is focusing on hearing were some members will appear in person and others may appear remotely via webex. Since members are appearing in person, let me first remind everyone that pursuant to the latest guidance, all individuals attending this hearing in person must wear a Face Covering. Wearing a Face Covering are not permitted to remain in the hearing room and will not be recognized to speak. Let me also make a few reminders about hybrid hearings. For those appearing in person who will be able to see members appear remotely on the two monitors in front of you. On one monitor, you will see all the members appearing remotely in once, in what is known webex as view mode. On the other monitor, you will see each person when they are speaking, including other members appearing remotely. You can also see each other, each person speaking, during the hearing, whether they are in personal remote, if you have your webex set to active speaker mode. If you have any questions about this, please, Contact Committee staff immediately. Let me also remind everyone the house procedures apply to hybrid hearings. Person,ers appearing in a timer is visible in the room directly in front of you. Youthose all may be remote, have a timer that should be visible on your screen when you mode, andive speaker you have the timer. For members appearing remotely, the house rules require that we see you. So please have your cameras turned on at all times, not just when youre speaking. Members who were not recognize will remain muted it minimize background noise to minimize background noise and feedback. Members will be recognized in Security Order for questions. If you are remote and want to be recognized outside of regular order, you may identify that in several ways. You may use the chat function to send the request. You may send an email to the majority staff. Unmute your mike to seek recognition year recognition. Eek thatttee staff will ensure i am made aware of the request and i will recognize you. We will begin the hearing in just a moment, when they tell me they are ready to begin the live stream. Good afternoon. The committee will come to order. Without objection, the chair is authorized to declare a recess of the committee at any time. Myself for mye opening statement. Today, this subcommittee welcomes secretary of the treasury, Steven Mnuchin. Secretarye first time mnuchin has testified before the subcommittee. I thank him for his appearance here today. On july 29, the Federal Reserve the path of the economy will depend significantly on the course of a virus. Jerome powell, appointed by president trump, and this point, is so fundamental, i think we cant say it enough. Tragically, seven months since the first case was discovered on our shores, the course of this coronavirus continues to be devastating. Nearly 6 million americans have tested positive for more than 182,000 and more than 180,000 americans have died. For more than any other nation on earth. This summer, while most of the countries were successfully containing the virus, the u. S. Saw a surge in cases and deaths. And, we know why. Instead of leading with a national strategy, the white house pushed states to reopen without a plan to keep people safe. Instead of communicating sciencebased Public Health guidance, the president claimed the virus would just disappear, i hope. The statements are costing hundreds of americans lives everyday. Federal reserve described it, the crisis is also causedd an unprecedented economic crisis with families struggling to feed their families and pay housing costs. The most recent data showed that theyment rate Unemployment Rate was 10. 2 at the end of july, higher than the worst month of the Great Recession and its aftermath. As of august 1, 29 million americans were receiving or waiting for an employment benefits. Unemployment claims are more than 10 times higher than they were at the beginning of the year and show little sign of returning to normal levels anytime soon. Jobs lost at the beginning of the pandemic have returned as certain businesses have real opened. That is a good thing. The administration has cla imed we are guaranteed a vshaped economic recovery where the economy returns to full strength quickly. But the evidence does not show that. We continued to see roughly one million americans file employment claims every week. File new unemployment claims every week. The economy remains in serious trouble. Vshaped recovery, warnedonomists have we face an uneven recovery. The rich return to prosperity while the lowerclass families continue to suffer harm. Janet yellen testified before the subcommittee. Quoting from the written lower paid workers, women and minorities, are represented in the most effective sectors, and thus, borne the disproportionate share of losses. Todays hearing is a call to action. The most important step we can take to fix the economy in the long term is to get the pandemic under control. But American Families are hurting now. And there are urgent steps the Administration Must take to prevent our nations economic crisis from becoming a catastrophe. Additional fiscal stimulus is urgently needed. Things in the cares act have expired. Millions of americans now are now facing eviction, debt, and hunger. States, cities, and businesses warn more layoffs may be coming. More than three months ago, House Democrats past a comprehensive bill passed a comprehensive bill to address these problems. The heroes act would extend 600 weekly Unemployment Benefits, help families with house and food assistance, and support states and local governments and the millions of essential workers they employ. Republicans rejected the bill. When the house offered to meet them in the middle with a compromise proposal, republicans rejected that, too. Instead, the president offered a fake solution, executive orders that give the appearance of action, but were clearly insufficient to address the economic peril americans face. I hope younuchin, will return to the negotiating table prepared to find common meetson legislation that the present needs of americas families and communities that are hurting from this crisis. The Treasury Department must improve its implementation byrelief programs passed congress. So far, the administration has prioritized big businesses over Small Businesses and the American Workers that congress intended to protect. The Administration Needs to the Paycheck Protection Program, payroll support for the Airline Industry, and other relief programs to ensure they are preserving jobs, not lining their pockets the pockets of wealthy executives. Third, the treasury must improve oversight and accountability to ensure taxpayers dollars or not squandered. Today, this committee is releasing a staff report raising serious concerns about potential thee, fraud, and abuse in Paycheck Protection Program based on and analysis of the treasury data. The subcommittee identified more oans to companies that received multiple ppp loans, in violation of the programs terms. Thousands of other loans were awarded to companies that were ineligible for the program or had red flags of potential fraud. Secretary mnuchin, given the need to get relief money out ity, was inevitable was inevitable that the treasury ran into a lot of issues. That is a false economy. Taxpayers should not have to choose between quickly getting aid to those who needed and wasting federal funds. Need it and wasting several funds. There are several steps that could have been taken to improve oversight and reduce fraud. Our report makes recommendations for steps that the treasury can still take to safeguard taxpayer money, including improving the plan for ppp. As i have said before, the notose of our oversight is to cast blame for past failures, but to make improvements to ensure future success. Hearing will be an opportunity for democrats and republicans to come together to acknowledge the Serious Problems americans face, and identify real solutions. Thank you. In the Ranking Members absence, i know yield to mr. Jordan or a republican member he may designate for an opening statement. Mr. Jordan, i think you may need unmute. At need to we cant hear you. Please, unmute. Thank you, mr. Chairman. Thank you for joining us. Its unfortunate the chairman criticizes your work in this unprecedented time. I want to thank you for the great work that you have done. It is unfortunate the chairman did not take into account the fact that the Ranking Member was unavailable for todays hearing. We up or should the fact that you are here, mr. Secretary we appreciate the fact that you are here, mr. Secretary. The trump administrations work combating this virus was unprecedented from the beginning. Democratslosi and the stood in the way of the president. The democrats were focus on impeachment and the president was starting a task force to combat the virus. When myra de blasio said one mayor deblasio said go but your lives, the president was starting research on a vaccine. We have heard from dr. Fauci himself about how the president s actions saved lives. With a lot about science and following the recommendations of the cdc and the guidelines they put forward. For 46 days, Governor Cuomo sent positive patients back o nursing homes, sent positive Covid Patients back into nursing homes. It was difficult. People could not go to church, go to school, the president knew help was required. Working in 10 days, Congress Passed the largest spending relief bill in the history of the country. Was the Paycheck Protection Program, which toended 5 million loans businesses and individuals across this country. Stood up and hours and run out of money in two weeks. To Speaker Pelosi to ask for money, but she wanted to bail a democrat run cities instead of helping Small Businesses. Mitch mcconnell had a bill, it didnt get a vote. Introduced a. Roy bill that would replenish the fund and make it even more helpful to businesses on the ground. The ppp programs supported millions of jobs and businesses in america. How many more have faltered while the democrats held Additional Support hostage . 15 days after the cares act, director checks to families and families. You successfully implement of the people support program. Loans to the Airline Industry. This program was ready in a matter of hours. Again, unprecedented. The speaker continues to say states dont have the money, but they do. They have money available to them because of the trump administration. Is not to say everything was perfect. But we need to remember its the federal government. Response we get and what we achieve, theres going to be a few mistakes in the. In that. What should be commended as the hard work done to fix the mistakes. These programs save and continue to save jobs. The best way to stimulate an economy and grow our economy is to let people go back to work. When it was time, the president led the charge to reopen the country and get americans back to work and get our kids back to school. We are seeing a decrease in unemployment and a steady increase in jobs. Mr. Secretary, thank you. I look forward to having questions. I yelled back. I ask unanimous consent that we enter the republican report on the Paycheck Protection Program supported 51 million jobs across the country. I ask for unanimous consent that be made part of the record. Without objection, it will be done. Thank you, mr. Jordan. Introducew like to our witness. Today, the select committee is pleased to welcome the honorable stephen t. Mnuchin, secretary of the treasury. And you for being here today. Will you please stand so i may swear you in . Thank you for being here today. Will you please stand so i may swear you when . Do you swear or from the testimony you are about to give is the truth, the whole truth, and nothing but the truth, so help you god . You may be seated. Please let the record show the witness answered in the affirmative. Yourut objection, written statement will be made part of the record. You are now recognized for your opening statement. Sec. Mnuchin of chairman, members of the subcommittee, i am pleased to join you here today to discuss the covid19 pandemic. The treasury has been working hard to provide direct economic assistance to American Workers and the families. We remain committed to making sure that every american gets back to work as quickly as possible. The bipartisan cares act is the biggest Economic Relief package in american history. Nearlyc relief totaling 3 trillion, approximately 15 of gdp, is having a tremendous impact on the economy, leading to increases in jobs, retail sales, business activity, and home sales. I also want to thank chairman powell and the Federal Reserve for substantial work executing 13 unique lending facilities. Exceededreport forecasts with a gain of 1. 8 million jobs in july. The springs of three months total to more than 9 million jobs. This brings the threemonth total to more than 9 million jobs. The job openings suggest the job market has continued to strengthen. We also see signs of strength ing economic recovery in the retail industry, signaling Consumer Spending on goods has recovered. The isn Manufacturing Survey indicated that for the second consecutive month. The Housing Market has nearly returned to prepandemic levels, field by strong Housing Starts and existing home sales in july. Hospitality firms, among the business hardest hit, hired thousands of workers in july, signaling confidence in the economy reopening. To see signsinue of recovery, we are sensitive to the fact there is more work to be done in certain areas of the economy that require additional relief. When it became clear previous negotiations were not moving forward, the president took executive action to provide clinical relief to america critical relief to americans. We will continue to work with the senate and house on a phase 4an basis for relief package. A bipartisan agreement still should be reached and would provide substantial funds for pppols, testing, vaccines, for Small Businesses, continued enhanced Unemployment Benefits, child care, nutrition, agriculture, and the u. S. Postal service, along with Liability Protection for universities, schools, and business. We have released a significant amount of information on our treasury. Gov, and are providing more information on usa spending dot gov. This marks my fifth appearance before congress for a cares act hearing. Where cooperating with various Inspector Generals and the gao. The Department Heads disclosed all payroll support payments to airlines and other programs on treasury. Gov. We have also posted extensive documentation related to Coronavirus ReliefFund Payments to state, local, and tribal governments in our website. We are also pleased the Federal Reserve has posted one information on their website regarding its learning facilities its lending facilities. Its lending facilities. We remain committed to working with you to accommodate Congress Legislative need and further the whole of government approach to defeating covid19. I would like to thank the members of the committee for working with us to provide vital Economic Relief to the American People. I would be pleased to answer any questions you may have. Thank you very much. Mr. Secretary, i wish to yield myself five minutes. Before we can fix the economy, we have to acknowledge the scale of the problem. Declared, ourp economy is roaring back. It is coming back extremely strong. He also predicted that the economy would have a fantastic Third Quarter. Today, we begin the last month of the Third Quarter. St with aly 1 wall small percentage of people. Shows that there are 27 million American Workers still receiving Unemployment Insurance. Of august 8. Three weeks ago. The is more than 10 times number of americans receiving Unemployment Benefits before the pandemic. 8, more than 2 million American Workers have filed new unemployment claims. Secretary, do these unemployment numbers indicate that our economy is coming back extremely strong, with a fantastic Third Quarter . Sec. Mnuchin mr. Chairman, let me first say, we are in an unprecedented situation where we closed down the entire u. S. Economy. This is not like a normal economic crisis. Im having a tough time reading your graph from here, but let me just comment. There are 16 Million People unemployed, down from 24 Million People unemployed. Wit