Allentown, Pa. – U.S. Senator Pat Toomey (R-Pa.), Senate Banking Committee Chairman Mike Crapo (R-Idaho), and the Republican members of the Senate Banking Committee are applauding Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell for shutting down the CARES Act’s temporary emergency lending facilities by year-end, as Congress intended and the law requires.
In a letter to Secretary Mnuchin and Chairman Powell, the lawmakers said:
“As members of the Senate Banking Committee, we write to you regarding the temporary emergency lending facilities funded and authorized by the CARES Act (P.L. 116-136). These facilities, which were established in response to the unprecedented market turmoil caused by the COVID-19 pandemic earlier this year, have been extremely successful in achieving their intended purpose of stabilizing credit markets so businesses, states, and municipalities could access private capital. Congress’s intent was clear: these facilities were to be temporary, to provide liquidity, and to cease operations no later than the end of 2020. With liquidity restored, we strongly support Treasury Secretary Mnuchin’s decision to close these facilities by year-end, as Congress intended and the law requires, and the Federal Reserve’s decision to return unused CARES Act funds to Treasury.”
“With the CARES Act, Congress demonstrated a willingness to act swiftly to address the financial fallout from the pandemic. If a critical need arises again in the future for these facilities, Congress can once again take action to revive them.”
In addition to Senator Toomey and Chairman Crapo, the letter was also signed by every other Republican member of the Senate Banking Committee: Senators Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Martha McSally (R-Ariz.), Jerry Moran (R-Kan.), David Perdue (R-Ga.), Mike Rounds (R-S.D.), Ben Sasse (R-Neb.), Tim Scott (R-S.C.), Richard Shelby (R-Ala.), and Thom Tillis (R-N.C.).