Politics

Trump administration wants an $850 billion stimulus plan to curb coronavirus damage

Key Points
  • The White House wants an $850 billion stimulus package to stave off economic destruction from the coronavirus pandemic. 
  • Treasury Secretary Steven Mnuchin is heading to the Capitol on Tuesday to discuss it with Senate Republicans. 
  • Congress has already passed emergency funding to slow the outbreak and is working on approving a plan that includes paid leave provisions.
U.S. President Donald Trump speaks during a news conference in the briefing room of the White House in Washington, D.C., U.S., on Monday, March 16, 2020.
Oliver Contreras | Bloomberg | Getty Images

Treasury Secretary Steven Mnuchin heads to the Capitol on Tuesday to discuss a third coronavirus response package with Senate Republicans as policymakers try to stave off economic calamity.

The Trump administration wants an $850 billion economic stimulus plan, two administration officials told NBC News. The White House's proposal would include about $50 billion in aid to an airline industry battered by the global pandemic, according to The Washington Post, which along with Politico reported the $850 billion figure earlier Tuesday.

VIDEO2:5202:52
Mnuchin: We want to get Americans emergency funds 'immediately'

Congress already passed $8.3 billion in emergency funding to help stop the coronavirus disease's spread. A separate plan to expand paid leave benefits, boost unemployment insurance and make testing more affordable is working its way through the Capitol this week. 

The outbreak has wreaked havoc on the economy, as restaurants, bars and event venues close down or limit service and stores take a hit from Americans staying inside. The travel and leisure industry, such as hotels and cruise lines, has taken a beating.

Washington has scrambled to blunt a potential economic free fall. The push includes efforts to protect workers who lose their jobs or wages because of the crisis. 

The Federal Reserve has also taken emergency steps such as cutting interest rates to zero and launching a quantitative easing program. Stocks had their worst day Monday since 1987.

Officials have put forward a bevy of options to inject cash into the economy. The White House has repeatedly mentioned the possibility of a payroll tax holiday. Several lawmakers have also floated giving money directly to Americans.

On Monday, Senate Minority Leader Chuck Schumer's office said the New York Democrat would propose a relief package of at least $750 billion. It would include measures such as forbearance on federal loans and a moratorium on evictions and foreclosures. 

— CNBC's Eamon Javers contributed to this report

Subscribe to CNBC on YouTube.