May 4 (UPI) -- The Treasury Department announced Monday that it will borrow nearly $3 trillion to support the U.S. economy this fiscal quarter due to the effects of the COVID-19 pandemic.
In a statement, the Treasury said it expects to borrow $2,999 billion in privately-held net marketable debt between April and June.
"The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April-June until July and an increase in the assumed end of June Treasury cash balance," the agency said.
The Treasury added that it borrowed $477 billion in the first quarter of 2020 and plans to borrow $677 billion in the third quarter.
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Congress has approved about $3 trillion in funding for programs to provide economic relief for individuals and businesses affected by state and local government efforts to slow the spread of the coronavirus.
On Sunday, National Economic Director Larry Kudlow said the Trump administration has entered a "pause period" in regards to plans for additional funding for the Paycheck Protection Program which designated $454 billion in funding for small business loans in the Coronavirus Aid, Relief and Emergency Services Act, and an additional $310 billion in the third coronavirus stimulus bill passed by Congress last week.
House Speaker Nancy Pelosi and other congressional Democrats have also called for a fourth stimulus bill including a proposal for $1 trillion in funding for state and local governments.
