Trump Administration Proposes 1,870 Trillion Won Economic Stimulus Including Aviation Industry Support

[Asia Economy Reporter Yoo Byung-don] The Donald Trump administration in the United States has proposed an additional economic stimulus package worth up to $1.6 trillion (approximately 1,870 trillion KRW) to mitigate the impact of the novel coronavirus disease (COVID-19).

Steven Mnuchin, U.S. Treasury Secretary, reportedly made this proposal to House Speaker Nancy Pelosi, a Democrat, who is negotiating the size of the stimulus package, according to major foreign media on the 1st (local time).

Mark Meadows, White House Chief of Staff, who is leading the negotiations alongside Secretary Mnuchin, said last night, "This includes $20 billion (approximately 23.38 trillion KRW) in financial support for the airline industry."

Meadows explained, "This is to extend support for airlines for six months," adding, "There was an urgent need to rescue the airline industry."

Although he did not specify the exact size of the stimulus package proposed by the White House, he stated that it exceeds $1.5 trillion.

Negotiations between the Trump administration and the House on the stimulus package have shown sluggish progress so far.

Speaker Pelosi insisted that $2.2 trillion (approximately 2,572 trillion KRW) should be allocated for the stimulus, but the Trump administration maintained its position that it cannot spend more than $1.5 trillion, failing to narrow the gap in views on the size of the stimulus package.

Earlier, the two major U.S. airlines, American Airlines and United Airlines, decided to implement unpaid leave for about 32,000 employees starting from this day if financial support is cut off.