Treasury, IRS Deliver Economic Impact Payments to 130 Million Americans in Record Time

WASHINGTON—The U.S. Department of the Treasury and IRS today announced that nearly 130 million Americans have received Economic Impact Payments, worth more than $218 billion, in less than five weeks. These totals do not include the more than $2.5 billion delivered to U.S. territories for payment to territory residents.

“This Administration has delivered Economic Impact Payments to Americans in record time,” said Secretary Steven T. Mnuchin. “More payments are on their way as we continue to deliver this much-needed relief to the American people.”

Treasury expects to deliver more than 150 million Economic Impact Payments in total.

Secretary Mnuchin to Attend G20 Finance Ministers and Central Bank Governors Meeting in Saudi Arabia

WASHINGTON – The U.S. Department of the Treasury today announced that Secretary Steven T. Mnuchin will travel to Saudi Arabia to attend the G20 Finance Ministers and Central Bank Governors Meeting in Riyadh from February 22-23, 2020.

“This trip will focus on advancing the Trump Administration’s economic agenda and working with international partners to address key economic and security issues to strengthen global growth,” said Secretary Mnuchin. “Meetings at the G20 provide an opportunity to continue productive engagement on a range of important issues, including international taxation, debt transparency and sustainability, digital assets, and efforts to combat terrorist financing.”

In Riyadh, Secretary Mnuchin will participate in the official G20 program and meet with his international counterparts, including with leaders from Saudi Arabia, Argentina, Canada, the European Union, Japan, Mexico, South Korea, and the United Kingdom.

Following the G20 meetings, Secretary Mnuchin will visit Abu Dhabi and Doha, where he will participate in bilateral meetings focused specifically on countering the financing of terrorist activities.

NOTE: Details are subject to change. Further information regarding the Secretary’s schedule will be made available in the days ahead. The U.S. Department of the Treasury’s Public Engagement Schedule.

Upcoming Event: Asian Financial Forum

Asian Financial Forum
January 13-14, 2020
Wan Chai, Hong Kong
Hong Kong Convention & Exhibition Centre

  • Participate in Deal Flow Matchmaking Session’s, one-on-one meetings.
  • Meet project owners, private equity firms, investors, high net-worth individuals, and senior professionals from intermediaries and professional service providers.
  • Contact AICC: usa@aiccus.org
  • Contact U.S. Commercial Service: Peter Sexton

Treasury International Capital Data for March

Washington – The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for March 2019. The next release, which will report on data for April 2019, is scheduled for June 17, 2019.

The sum total in March of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC outflow of $8.1 billion. Of this, net foreign private inflows were $13.6 billion, and net foreign official outflows were $21.7 billion.

Foreign residents decreased their holdings of long-term U.S. securities in March; net sales were $30.3 billion. Net sales by private foreign investors were $20.6 billion, while net sales by foreign official institutions were $9.7 billion.

U.S. residents decreased their holdings of long-term foreign securities, with net sales of $1.9 billion.

Taking into account transactions in both foreign and U.S. securities, net foreign sales of long-term securities were $28.4 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, overall net foreign sales of long-term securities are estimated to have been $40.6 billion in March.

Foreign residents increased their holdings of U.S. Treasury bills by $23.9 billion. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $69.7 billion.

Banks’ own net dollar-denominated liabilities to foreign residents decreased by $37.2 billion.

Amazon is acquiring home Wi-Fi start-up Eero

CNBC.com reported, Amazon said on Monday that it’s acquiring Eero, a developer of internet routers that can be easily connected in the home. Terms of the deal weren’t disclosed.

It’s Amazon’s latest push into the smart home, following the acquisition of video doorbell maker Ring last year for $1 billion. Amazon’s primary home device is its own Echo smart speaker, powered by Alexa.

In the router market, Google has a competing product called Google Wifi. Apple discontinued AirPort home routers last year, and Cisco sold Linksys to Belkin in 2013. Netgear stock was down as much as 5 percent after hours following the announcement.

Eero, based in San Francisco, was founded in 2014 by Nick Weaver, Amos Schallich and Nate Hardison with the goal of making Wi-Fi simple to use, easy to install and effective across many rooms in a house. In 2015, the start-up sold $2.5 million worth of products in its first two weeks after the company began accepting preorders, CNBC reported earlier.

“We have a shared vision that the smart home experience can get even easier, and we’re committed to continue innovating on behalf of customers,” Dave Limp, senior vice president of Amazon devices and services, said in a statement.

A single Eero device costs $199 and covers up to 1,500 square feet. Users can add a so-called beacon for another room for an additional $149 or can buy both combined for $299. The company also sells a security service for $99 a year.

“You have to be able to react quickly to customers, and at the same time, you have to think far enough ahead to think about what the hardware needs to do in the future,” Weaver said in a 2016 interview. A graduate of Stanford University and former venture capitalist, Weaver has been fixing home networking systems since he was 10.

More than 150 people are listed as Eero employees on LinkedIn. The company raised at least $90 million from investors including Index Ventures, Playground Global and Redpoint Ventures. Eero laid off one-fifth of its employees last year, TechCrunch reported.

Amazon previously dabbled in the Wi-Fi market as an investor. In 2016, the company backed a start-up called Luma as part of a $12.5 million round. Luma, which also raised money from GV (formerly Google Ventures), was acquired last year by First Alert, a unit of Newell Brands.

MBDA Awards Nearly $2 Million to Historically Black Colleges and Universities

WASHINGTON (December 3, 2018) – The U.S. Department of Commerce’s Minority Business Development Agency (MBDA), is announcing grant awards of nearly $2 million to four Historically Black Colleges and Universities (HBCUs). In June 2018, MBDA invited HBCUs to propose projects that will achieve one or more of the following objectives: increase their ability to compete for and receive Federal research and development funds; establish partnerships with Federal laboratories and other technology resources; increase Science, Technology, Engineering, and Mathematics (STEM) entrepreneurship; and compete for Federal contracts.

“Historically Black Colleges and Universities served as the catalyst to creating the black middle class in America and will continue to be the incubator for minority business talent, innovation, and leadership. These important schools generate billions in economic impact annually and are engines for job creation in their local economies across the United States,” said MBDA National Director Henry Childs II. “These grant awards will provide seed money for these institutions to pursue innovative projects and to build more revenue-generating infrastructures to better serve our nation’s future entrepreneurs and workforce.”

The HBCUs that received grant awards include:

Clark Atlanta University ($499,497) to develop a STEM entrepreneurship curriculum that increases student interest in the innovation economy at three Atlanta University Center Consortium campuses.

Howard University ($359,891) to design a technical support model for 11 HBCUs in the mid-Atlantic region to compete for Federal research and development funds and leverage partnerships with Federal laboratories.

South Carolina State University ($404,992) to launch regional training sessions for HBCUs to compete for Federal research and development funds.

Tougaloo College ($695,412) to establish a partnership among multiple HBCUs, private companies, federal labs, and research institutions to increase capacity for HBCUs to participate in federal research and contracting opportunities.

These programs are part of the 2018 MBDA Broad Agency Announcement, a new initiative this year. More than $13 million was awarded for 35 projects focused on Department of Commerce and MBDA priorities from resources that increase disaster preparedness and relief to programs that increase access to capital. For a full listing of MBDA’s 2018 grant awards, visit http://www.mbda.gov/news.

Tax Cuts Act a Win for American Business and the American Worker

Photo of White House event celebrating passage of the Tax Cuts and Jobs Act.

Earlier this week, Congress passed the first overhaul of the U.S. tax system in more than three decades. The historic Tax Cuts and Jobs Act will cut taxes across the board for working families and businesses both large and small. The Act also will make American more competitive, will bolster continued job creation and will help increase wages for American workers.

“President Trump’s tax plan will make our tax code more simple and fair, and help American business stay competitive. Accomplishing these objectives will lead to increased economic growth, and, most importantly, better jobs for the American worker.” – Secretary of Commerce Wilbur Ross.

Highlights of the Tax Cuts Act for include:

Bigger paychecks for American workers. The Tax Cuts Act provides $5.5 trillion in tax cuts by nearly doubling the standard deduction, doubling the child tax credit, protecting tax savings for higher education and retirement, and lowering rates across the board. It also repeals ObamaCare’s individual mandate tax, 80 percent of which hit households earning less than $50,000 a year in 2016.

Putting American businesses on a level playing field with foreign competitors. America’s corporate tax rate will go from being the highest in the developed world to below the average for Organisation of Economic Co-operation and Development (OECD) countries. A one-time tax on corporate earnings stashed overseas will end the incentive for companies to keep their profits outside of the United States.

Eliminating dozens of special interest tax breaks and loopholes. The Tax Cuts Act will raise $4 trillion in revenue to help offset tax cuts by closing the door on dozens of corporate accounting tricks. The bill eliminates a loophole used to deduct compensation for executives earning more than $1 million a year.