On The Money: Millions wait for virus relief checks in major test for IRS | Senate misses deadline to replenish small-business loan program | Fresh produce goes to waste as coronavirus snarls supply chains

by Sylvan Lane - 04/17/20 4:59 PM ET

Happy Friday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL—Millions wait for virus relief checks in major test for IRS: The IRS has started to issue coronavirus rebates to tens of millions of people but faces challenges in getting the payments to everyone.

Treasury Secretary Steven Mnuchin said Wednesday that more than 80 million Americans have already received their payments via direct deposit.
The Trump administration also announced Friday that recipients of benefits from the Department of Veterans Affairs (VA) will automatically receive $1,200 coronavirus rebates, without having to file tax returns.
But millions of people who haven’t previously given the IRS their bank information, or who may not typically file tax returns, are still waiting.

“The easy part is the direct deposit payments, and the IRS deserves high grades for what they’ve done so far,” said Mark Everson, vice chairman of alliantgroup, who served as IRS commissioner from 2003 to 2007. “Now, it gets more complicated.”

“The most difficult part will be getting the money to the people who are entitled to it but whom the service doesn’t have current addresses or banking information,” he added.

The Hill’s Naomi Jagoda explains why.

The log jam in a nutshell:

The IRS has started to issue payments to taxpayers who provided the agency with their direct-deposit information on their 2018 or 2019 tax returns and is expected to start sending paper checks next week.
Policymakers have been encouraging people to provide their bank account information to the IRS because they’re expected to get their rebates faster if they can get them through direct deposit than if they have to wait for a mailed paper check.
But millions of people have not previously provided their bank account information to the IRS, and reaching all of those people poses challenges.

LEADING THE DAY

Senate misses deadline to replenish small-business loan program, but talks go on: Senate negotiators haven’t given up on reaching a deal to add funds to a small-business lending program set up to help firms weather the coronavirus crisis after the program ran out of money Thursday.

While GOP leaders in the House and Senate have ripped Democrats over the impasse as unemployment claims spike, there were some signs that the two sides could still come together.

During a conference call with lawmakers from both parties, President Trump expressed hope “that Democrats and Republicans can work together to find a solution here,” according to Sen. Roy Blunt (R-Mo.).
Republicans are seeking a clean $250 billion in new money for the program, while Democrats want to reform the program and provide at least $250 billion for hospitals, state and local governments and the Supplemental Nutrition Assistance Program (SNAP) for low-income families.
Trump has said that he’s open to attaching money for hospitals and state and local governments to an additional $250 billion for the program, creating a window for a potential deal.

The Hill’s Alexander Bolton brings us up to speed here.

Fresh produce goes to waste as coronavirus snarls supply chains: Fresh produce is increasingly going to waste as the coronavirus outbreak wreaks havoc on the nation’s supply chains.

Farmers are finding it difficult to sell their products and distributors are struggling to redirect food quickly with restaurants, schools and offices closed.
The news is rife with stories about farmers leaving produce to rot in the fields, even as Americans see empty shelves at grocery stores and food banks say they are overwhelmed by requests for assistance.

Experts and industry groups say the changes brought on by the pandemic, which has shut down huge swathes of the economy and kept millions at home, can’t easily be accommodated by the complex supply chain networks already in place.

“I think what it demonstrates is that the food supply chain that we have set up now, it’s not set up to pivot … quickly to address this kind of shock to the system,” Brian Ronholm, director of food policy at Consumer Reports, told The Hill.

The Hill’s Alex Gangitano explains why here.

GOOD TO KNOW

Five takeaways on the White House’s coronavirus guidelines.
A group of Senate Democrats is urging Treasury Secretary Steven Mnuchin to exempt checks being issued as part of last month’s $2.2 trillion coronavirus relief bill from being subjected to garnishment by debt collectors.
Stocks jumped Friday morning following reports of a potentially effective treatment for the coronavirus.
Amazon has suspended more than 6,000 vendors, totaling more than 500,000 listings, from its website for price gouging during the coronavirus pandemic, CEO and founder Jeff Bezos told investors Thursday.
The Trump administration has been moving quickly to distribute CARES Act funding to hospitals and doctors, but providers at the front lines of the coronavirus pandemic are worried they will be shortchanged.

Recap the week with On The Money:

Monday: Trump claims he has power to decide when to reopen states | Governors forming groups to discuss reopening | Senate caught in standoff over relief bill

Tuesday: Trump set to unveil guidelines on reopening economy | Food supply worries grow after Smithfield meat plant closure | Business tax provisions in coronavirus relief law spark controversy