We will receive testimony from the secretary of the check treasury as required under title iv of the cares act congress has appropriated 3 trillion to protect to fight the pandemic and to stabilize the infrastructure of our economic system. A large portion of this funding is from the title iv of the cares act which has significant resources for loans and loan guarantees and other investments from the Federal Reserve with the emergency lending facilities in the states and municipalities and tribes. The title iv provided 454 billion as the infusion into the Stabilization Fund to support the emergency lending facilities that facilitated the qualities to support eligible businesses, states, local governments and tribes. And to be authorized under section 13 and to stabilize those markets but the Federal Reserve announced the establishment of the intent to establish to support the Financial Markets and businesses including some that are supported by the cares act. Last week other members of this committee and i have a robust discussion with these facilities to stress the importance like the main Street Lending programs and the Municipal Liquidity facility of stress the importance with broad access is also a disk should be successful to take into the special purpose vehicles various programs they are a critical component of a strong economic recovery which reinforces the need and flexible as possible. It contains robust oversight revisions. It is critical each federal agency follow all reporting and oversight requirements and then to ensure appropriate oversight. And then favorably out of committee and then the Congressional Oversight Committee with that oversight of title iv. And the biggest rescue package in the history of congress i look forward to hearing more on the status of the treasury loan programs those emergency programs and the Paycheck Protection Program the steps they have taken and will continue to go that way under the cares act. And how those unused funds will be prioritized and leverage to have additional liquidity to the economy. Will not part of have worked around the clock for the Paycheck Protection Program four. 3 million loans to Small Businesses mountie 515 billion according is 118,000 and during the funding it has been around 70000 on april 28 treasury and sba announced they would review all pp loans to make sure the borrowers Self Certification is appropriate sba in treasury have a safe harbor for under 2 million Commerce Committee chairman sent a letter to secretary mnuchin for the Payroll Support Program with a detailed report on the status of the program to announce those new transparency measures i encourage you to continue your work with the applicants as those funds are disbursed. I commend each of you and staff for extraordinary actions to stabilize the economy and provide support during this trying time. Thank you for joining us today in response to covid19. Thank you for following the best advice to hold a virtual hearing to prevent the spread of coronavirus. Thank you for joining us. Im so outraged by mcconnells reckless decision to keep senate in session including Capital Police officers, custodials staff cafeteria workers and everybody at risk. With those Public Health authorities advice and has no plan to get additional help for families and communities the house passed a bill that incorporates our plans the American People are rising to the challenge the leaders are failing them leader mcconnell says he sees no urgency. Those are his words would like to pause for a moment to recognize all the workers who lost their lives on the job during this pandemic. Coronavirus has brought out the best in the communities the spirit of solidarity and inspired to empower the Civil Rights Movement that spirit of solidarity applies for hospital workers and play dates as millions of individual americans pull together to do their part to flatten the curve but this pandemic how corporations claim they are now they are a cost to be minimized with the bailout of the financial crisis and how the country rewords wall street into often ignores those who make the country work. We are told we cant afford and have to raise prices nevermind ceos nevermind those prices dont do you good if your wages stay low economy has paid the price with lower Economic Growth now it is pretty clear when millions of americans are workers are laid off to make low wages to begin with now worried about the future the economy grinds to a halt. This is American Workers those who stock our shells and deliver packages and fill prescriptions. Ago she store worker in ohio said i feel safe at work and they dont pay me much i dont feel essential but expendable asking people to show up for work to risk their Family Safety finally realizing the words of doctor king ringing true that one day society will come to respect the sanitation worker picks up the garbage in the final analysis and diseases are rampant all labor has dignity you may think we are demanding more from essential workers than ever before people to take care of our families and mostly women often black and Brown Workers to get a huge way to raise. And those that are in high demand. And as essential workers after a long stressful day they wonder how they pay their rent and afford another week of groceries those are the ones that are working what about the first 35 million americans that have been laid off because of the crisis . And we try to make sure the trillions of dollars in spending like it usually does we want to make sure the fed and the treasury got this money directly into workers pockets was does it go to gas and Oil Companies with that existential threat chairman powell i appreciate your recent comments if congress does not act now to put money in the hands of people who power the economy workers and families and mainstream businesses leader mcconnell needs to let and to argue and fight with the same do Something Congress has an important responsibility also that the 500 billion already of proof from the fed and treasury is getting to workers what we know so far it does not appear this administration or the Federal Reserve are making workers their priority i look forward to hearing from both of you mr. Secretary not only what you are doing for big banks and big corporations how to make sure the money and Authority Congress gave you actually helps the people who make this country work i want to hear how it will be different this time and what you will do to transform our economy so it works for everyone not just the wealthy and powerful. Your plans to make our economy work for essential workers now and in the future and those who lost their jobs to get back to work. Now we move to the testimony secretary mnuchin your full written statements are a part of the record will go to your testimony. German crapo Ranking Member and members of the committee thank you for the opportunity to highlight how the department of treasury and the Federal Reserve are working together to provide liquidity to the Financial System the Program Support the flow of muchneeded credit families states and municipalities. And then to go forward in a safe way with proper social distancing and then to have the unprecedented challenges they are experiencing due to the covid19 pandemic. And through no fault of their own the American People are also in during economic challenges i am inspired by the medical professionals and First Responders on the front lines taking care of fellow citizens thanks to their efforts any unwavering commitment to the communities i am confident the nation will emerge from the pandemic stronger than ever before. President trump in the entire administration are provided to have necessary relief to help people get through this time the Treasury Department is working hard to implement the cares act we appreciate Congress Working with us to enact a statute that is the single long largest Economic Relief effort in the history of our country we appreciate the feedback from members of congress on both sides of the aisle as we implement a number of the critical programs established by the cares act we work closely with the Small Business administration on the Paycheck Protection Program with over 500 to keep tens of millions of hardworking americans on the payroll 400 community develop Financial Institutions many small banks in nonbanks are participating in the program more than 140 million Economic Impact payments to provide direct relief to millions of americans. The typical family of four received approximately 3400 we have distributed 150 billion to states, local and tribal governments through the Coronavirus Relief fund and also approved 25 billion of support to protect this critical sector of the economy. Turning to the central focus of the hearing today they cares act provided authority with 454 billion for the lending facilities to provide liquidity to the system and the primary Credit Facility that Money Market Fund facility, assetbacked securities, loan facilities and the secondary market. Main street Business Funding program. Municipal liquidity facility and the ppe facility. And with 200 billion with credit support under the cares act we have the remaining money and we continue to monitor a variety of sectors closely and are prepared to support these programs of the Federal Reserve as we move forward. We are sympathetic to hardworking americans in business during tremendous challenges the from covid19 we have to take unprecedented steps to shut down significant parts of the economy in the interest of Public Health we see large unemployment and other negative indicators the large number represents real people and to bring people back to work as we listen to medical experts we are optimistic about antiviral therapies and testing working system closely with the governors in a way that minimizes risk to customers and workers we expect Economic Conditions into next year. I want to conclude by thanking the hardworking People Treasury and Federal Reserve under the leadership working with all of you on a bipartisan basis with hardworking americans and businesses as quickly as possible this is unprecedented in difficult times these make a major positive impact in peoples lives together we will destroy covid19 virus in the country will emerge from this pandemic stronger than ever i look forward to your questions spent thank you secretary mnuchin. Chairman and Ranking Members of the committee thank you for the opportunity to testify today the First Quarterly hearing on the cares act. Of worldwide Public Health crisis and to be the First Responders to encourage the determination with a lasting gratitude. And those up at themselves at risk every day. And then to slow the spread of the virus. Economy has been effectively closed since march and then to make an arm the sacrifices for the loved ones and neighbors and then to make an investment as policymakers we should continue to do what we can to cushion the blow. The scope and speed of the downturn without modern president since world war ii we see a severe decline in Economic Activity and already the job gains from the last decade more than 20 Million People have lost their jobs and Research Shows what others have found that they are being hardest hit this reversal of economic fortune has caused a level of pain thats hard to capture they are upended with great uncertainty about the future. And in this challenging time they are so far falling into four categories. Outright purchases of treasuries and mortgagebacked securities. And those funding measures with the discount window measures and with those facilities with a smooth money market function so with to support the flow of credit to households and businesses in state and local governments the temporary regulatory adjustments to allow them to expand the Balance Sheets to support the business customers so far we have created 11 facilities under section 13 to support the flow of credit is all been undertaken with the treasury secretary and those that are supported from the cares act i discussed these facilities and greater length in my statement which i provided to the committee and at the fed we are committed to transparency that depends on the transparency. Thank you i will be happy to answer questions. I begin with you mr. Chairman. With regard to the municipal facility the threshold for cities and counties are established but at such a level that many of the small cities and counties across the United States do not apply for individual loans. You have indicated the states to apply for loans for the smaller cities and counties and there is a lot of concern out there. Like to ask you to clarify that these dollars do reach the small cities and counties and tell us the process by which that can be accomplished. We have been gradually expanding the scope of potential borrowers in this world and there are 50000 identities we need to draw some lines and in the first instance we said we always be willing to lend to a state to allow the purpose of down streaming to cities and counties of the governmental authority. And then continuing to look at ways to accommodate it with those relatively low populations in looking at ways to make sure to address the needs of another borrower or to. And secretary mnuchin with regards to those facilities with 500 billion with the exchange Stabilization Fund to help facilitate the implementation by the Federal Reserve. Most of that has not yet played out. Correct . Of the 500 billion approximately 50 billion was indirect lending programs for the treasury and 450 billion with those facilities i allocated half of that and i am prepared and then we are just getting these facilities up and running and with that potential for adding additional facilities. But only the suppercaseletter was given to us. In the way these work and then to a particular story and implements the facility than that money can be a leverage with that situation that is addressed. Depending on the credit risk on the leverage with the existing capital and 3 trillion in existing facilities. And whether the treasury is willing to take risk and with that i say absolutely yes. The way these work in the facilities that dont have any credit risk such as the ppe that without capital allocated by definition any facility i do put it up so it is at risk we are fully prepared to take classes in certain scenarios on the capital. There have been some allegations that those that are benefited by the facility. The announcement of the Corporate Bond facility without putting one dollar of taxpayer money but the primary and secondary markets. Companies such as boeing would need to borrow from us on a direct basis to borrow 25 billion in the primary markets so i would say in the best Case Scenario the markets open up and we dont need to use these facilities. In the case of main street facility to be up and running and to have a big impact on both of those markets. Those who of cap this country running the essential workers we all Pay Lip Service are the lowest paid workers in the economy disproportionately black and Brown Workers too often they dont have a union and lowwage workers who prepare our food and put the lives on the line to keep the country running still worried about paying the bills and stay healthy is that fair . Just for the technical issues i do not hear the beginning of your question. The people we call the essential workers are often the lowest paid workers the custodians insecurity people they prepare our food for very low wages. Is that fair . I just want to thank all the essential workers whether the healthcare people. Thanking them is great. But is it fair the economy to play so little and work conditions . Some people are paid less than others. Is that fair . Again i dont know what specific workers you are referring to. Is it fair those workers and those that make low wages we call them essential by all definition. Is that fair . And with the service sector. But there is a lot of in person contact. But all of the efforts to help those people to create conditions of the best possible chance to get back to work is to support that pandemic and to support another recovery act that has more dollars for the lowpaid workers that co