KEY POINTS

  • Mnuchin plans to move $455 billion of COVID-19 relief back into the Treasury's general fund
  • A transferral could only be done "on or after Jan. 1, 2026"
  • Porter slammed Mnuchin for "play-acting to be a lawyer"

California’s Democratic Rep. Katie Porter and Treasury Secretary Steven Mnuchin got into a heated exchange over coronavirus relief during a House Financial Services Committee hearing on Wednesday.

Porter questioned Mnuchin about his plan to move $455 billion in unspent coronavirus relief funding back into the Treasury Department’s general fund. The funds, which were reserved under the CARES Act, could only be transferred back to Treasury “on or after Jan. 1, 2026,” according to the legislation, HuffPost reported.

“On or after Jan. 1, 2026, any funds that are remaining shall be sent back to the general fund,” Porter read aloud.

“Senator Mnuchin, is it currently the year 2026? Yes or no?” the California representative asked.

“You’re putting words in my mouth that are not correct,” Mnuchin replied. “Of course it’s not 2026. How ridiculous to ask me that question to waste our time.”

Porter then blasted Mnuchin for “play-acting to be a lawyer” and asked him whether he had a legal degree.

“Well, Secretary Mnuchin, I think it’s ridiculous that you’re play-acting to be a lawyer when you have no legal degree,” the congresswoman said. “Are you in fact a lawyer?”

“I do not have a legal degree. I have lawyers that report to me,” Mnuchin answered.

Democrats have previously questioned Mnuchin’s plan and his handling of the coronavirus relief funding from Congress. Moving the funds back to the Treasury Department would require the Biden administration to get congressional authorization to access the funds.

Bharat Ramamurti, a Democratic member of the congressional committee overseeing the stimulus funding, slammed Mnuchin’s move, calling it “illegal,” The Hill reported.

“This is Treasury’s latest ham-handed effort to undermine the Biden Administration,” Ramamurti tweeted. “The good news is that it’s illegal and can be reversed next year.”

Mnuchin was previously called out for holding back $679 million in federal aid for Native American tribes. U.S. District Federal Judge Amit Mehta ordered the Treasury secretary to release the full amount, which he held back while a case determined whether tribal businesses were eligible to receive federal aid.

“The Secretary has now taken more than twice as much time as Congress directed to distribute all CARES Act funds,” Mehta wrote.

Democrats have accused outgoing Treasury secretary Steven Mnuchin of trying to sabotage the economy by removing unused loan money from the Federal Reserve
Democrats have accused outgoing Treasury secretary Steven Mnuchin of trying to sabotage the economy by removing unused loan money from the Federal Reserve POOL / Al Drago
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