Senate Republican Stimulus Bill Would Cut Off Fed Loans in January

A "skinny" stimulus bill unveiled Tuesday by Senate Majority Leader Mitch McConnell and the Republicans would end the Federal Reserve's 13(3) lending in January and curb the Fed's ability to widen coronavirus lending. The bill is unlikely to pass either chamber of Congress in its current form.

• The proposal would reduce a CARES Act appropriation passed in March from $454 billion to $250 billion, while the Fed has used $195 billion of that money to create lending programs already. That money is directed to the Treasury and is used in a first-loss position for Fed lending, such as in the Main Street Lending Program and Municipal Liquidity Facility.
• The Republican proposal would also set Jan. 4 as the deadline for application to Fed facilities and Jan. 18 as the last day for extension of credit.