U.S. Sen. Doug Jones, D-Alabama, asked the Treasury Secretary on Tuesday to expedite direct assistance payments to citizens amid the COVID-19 outbreak.
In a letter to Treasury Secretary Steven Mnuchin, Jones and Sen. Tom Cotton, R-Ark., expressed concern that CARES Act payments made through paper checks to some citizens would not be mailed until April 24. The senators asked that debit cards be mailed instead, thereby speeding up assistance.
“It is our understanding that payments made electronically can be distributed quickly, but the Internal Revenue System (IRS) must print paper checks and mail them separately. As a result, we encourage the Treasury Department to offer a targeted group of Americans the option of receiving their direct assistance payment on the Direct Express debit cards, which are used for other federal benefits like Social Security and Veterans Affairs benefits,” the senators wrote.
“While a slight lag between Congressional action and the support arriving to workers is understandable, the Treasury Department must act expeditiously to get these funds to their intended recipients,” the letter continues.
The $2 trillion COVID-19 relief package includes payments of up to $1,200 per adult and $500 per child. The first round of payments are likely to begin around April 13 and will be directly deposited into the accounts of those who filed taxes in 2018 or 2019.
Social Security beneficiaries who did not file taxes in recent years but who receive their benefits through direct deposit are to receive the emergency payments around 10 days after the first round of payments, also through direct deposit. Paper checks will then be mailed to other individuals.
The letter’s full text:
April 7, 2020
The Honorable Steven T. Mnuchin
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Avenue NW
Washington, D.C. 20220
Dear Secretary Mnuchin,
The Coronavirus Aid, Relief, and Economic Security (CARES) Act included economic relief to Americans in the form of direct cash payments to provide support during this unprecedented public health and economic crisis. In order to provide this much-needed assistance directly and quickly, we request the Treasury Department utilize its Direct Express debit card as one method, at the option of the individual, for disbursing these payments as an alternative to paper checks.
We were alarmed by the Washington Post report on April 2, 2020, that “$30 million in paper checks for millions of other Americans won’t start being sent out until April 24, as the government lacks their banking information. And some of those checks won’t reach people until September.”[1] Americans should not have to wait five months to receive their checks.
While a slight lag between Congressional action and the support arriving to workers is understandable, the Treasury Department must act expeditiously to get these funds to their intended recipients. These direct assistance payments are aimed at assisting American workers in covering the cost of essentials household items, including rent and mortgage payments, outstanding bills, and food to feed their families.
It is our understanding that payments made electronically can be distributed quickly, but the Internal Revenue System (IRS) must print paper checks and mail them separately. As a result, we encourage the Treasury Department to offer a targeted group of Americans the option of receiving their direct assistance payment on the Direct Express debit cards, which are used for other federal benefits like Social Security and Veterans Affairs benefits.[2] Using debit cards could be limited to Americans eligible for this program not already signed up for direct deposit, have a bank account, or require a paper check.
As Americans across the country practice social distancing to contain the spread of COVID-19, we support delivering benefits automatically to as many people as possible and request that debit cards be offered as an option to distribute the assistance payment. Debit cards are a safer method of delivery than paper checks. Paper checks will force Americans to leave their homes to deposit the funds and can be a source of fraud. We appreciate your consideration of this request to keep Americans safe during these challenging times.
