On The Money: Cash assistance for Americans gains steam as coronavirus roils economy | Markets rebound on stimulus promises, Fed action | Trump officials get GOP pushback on stimulus

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THE BIG DEAL–Cash assistance for Americans gains steam as coronavirus roils economy: President Trump and lawmakers are embracing the idea of cutting checks to millions of Americans as they scramble to revive the economy. 

• Lawmakers are floating a myriad of potential proposals as the growing spread of coronavirus is taking a greater toll on financial markets and grinding key industries like restaurants and airlines to a halt. 
• In a boost to its prospects, Treasury Secretary Steven Mnuchin said that he wants to start sending checks out within two weeks, indicating it should be in the third coronavirus package that Congress is currently negotiating. He pitched GOP senators on a plan expected to top $1 trillion, but faced some fierce resistance.
• Sen. John Thune (R-S.D.), the No. 2 Senate Republican, said there is “a high level of interest” in the White House cash-payment proposal. And a slew of Democrats have already voiced support for direct payments, proposing even more ambitious plans.

Lawmakers say the payments could help Americans, particularly those who lose their job, cover short-term costs. The economic turmoil sparked by the coronavirus has fed fears of widespread layoffs, and impacted individuals unable to make rent or other monthly payments. 

But some Republicans have bristled at the idea, arguing that it won’t help stimulate the larger economy because Americans are likely to save the money over concerns about long-term economic stability. 

The Hill’s Jordain Carney and I break it down here.

Steep economic slowdown: While the U.S. enjoyed 50-year lows in unemployment and gradually rising wages before the coronavirus pandemic escalated, the relative strength of the economy before the outbreak may do little to counter the near-total shutdown of entire industries.

Restaurants, bars, retailers, hotels, sports leagues, theaters, gyms, and a slew of other non-grocery or pharmacy businesses have shuttered or severely restricted operations as public health officials urge Americans to adopt drastic social distancing measures.

More on the push for a fiscal stimulus plan: 

• Senate Majority Leader Mitch McConnell (R-Ky.) said Republicans will work out a deal among themselves on a third coronavirus funding package before negotiating with Democrats, but will pass the House’s second coronavirus funding package without changes.
• Speaker Nancy Pelosi (D-Calif.) on Tuesday said House Democrats demand that any subsequent legislation to help mitigate the economic impact of the coronavirus pandemic include an expansion of emergency paid leave. Advocacy groups hit Congress for not going far enough, saying legislation passed by the House and backed by President Trump leaves too many people behind.
• Federal Reserve Chairman Jerome Powell also urged Pelosi to “think big fiscally” as Congress rushes to craft and pass a massive economic rescue plan, according to a senior Democratic aide.
• The U.S. could already be entering a recession because of the coronavirus pandemic, according to a Tuesday analysis from S&P Global.

Stay informed on the coronavirus pandemic: 

• 12 things to know today about coronavirus
• Pentagon to give 5 million respirator masks, 2,000 ventilators to HHS in response to coronavirus outbreak

LEADING THE DAY

GOP lukewarm on talk of airline bailout: Pressure to extend tens of billions in federal relief to the struggling airline industry is being met with grumbles from top Republicans on Capitol Hill.

GOP senators appeared lukewarm to the idea of a bailout, though they also appeared to acknowledge that airlines are likely to need government assistance to weather the storm.

Carriers have largely grounded planes over growing concerns about the extent of the coronavirus outbreak. The U.S. Travel Association is projecting that close to 5 million travel-related American jobs will be lost due to the coronavirus, according to an analysis the group released Tuesday.

The White House is pitching roughly $50 billion for airlines in a package that GOP senators estimated could top $1 trillion, dividing a party historically averse to bailouts.

Jordain Carney, Niv Elis and Alex Gangitano have more here.

Lawmakers welcome Treasury move to extend tax deadlines: Treasury Secretary Steven Mnuchin on Tuesday provided more information about the administration’s plan to extend tax deadlines due to the coronavirus, a development welcomed by lawmakers on both sides of the aisle.

• Mnuchin said during a press conference at the White House that individuals who owe the IRS money will be able to defer up to $1 million in payments for 90 days without interest or penalties, while corporations will be able to defer up to $10 million.
• Lawmakers and other stakeholders spoke favorably about the move, saying that extensions will be beneficial for individuals and small businesses that are seeing a loss of income due to the pandemic.

Still, Mnuchin’s comments leave some unanswered questions, and lawmakers and tax experts are eagerly awaiting formal guidance from the Treasury Department and IRS.

The Hill’s Naomi Jagada explains here.

GOOD TO KNOW

• U.S. stocks rebounded Tuesday after one of their worst drops in history a day earlier, as President Trump and Congress advanced economic stimulus plans and the Federal Reserve took actions to shore up the financial system in the face of the coronavirus pandemic.
• The Morning Consult Index of Consumer Sentiment fell to 103.19 on Tuesday morning, falling 1.81 percent from the day before, and bringing the ICS to a new low point since Morning Consult began tracking over two years ago.
• Rep. Ayanna Pressley (D-Mass.) said Tuesday that she and Sen. Elizabeth Warren (D-Mass.) will call on congressional leadership to include student debt cancellation in the next coronavirus relief package.
• The New York governor and attorney general offices on Tuesday announced the suspension of the collection of state medical and student debt as the coronavirus continues to rock the country.
• Marriott International Inc. will begin to furlough tens of thousands of employees amid the coronavirus pandemic, a Marriott official confirmed Tuesday.

ODDS AND ENDS

• Sens. Elizabeth Warren (D-Mass.) and Sherrod Brown (D-Ohio) asked the Consumer Financial Protection Bureau (CFPB) to step up oversight of the $1.3 trillion in auto loans held by Americans as the economy faces a deep slowdown due to the global coronavirus pandemic.