How Congress plans to pay for Biden’s relief plan

President Joe Biden’s Covid relief plan is making its way through Congress.

The $1.9 trillion bill includes money for a myriad of programs, including enhanced unemployment benefits, vaccination efforts and $1,400 stimulus checks.

The direct payments alone are expected to cost over $400 billion.

Funding new relief spending involves an interesting way of borrowing and figuratively printing money, according to Sahil Bloom, a financial educator and vice president at Altamont Capital Partners. 

Bloom said the government can create money without actually printing physical currency. “We live in a digital age. So really money is just numbers on a screen,” he said. 

The undertaking involves three key players: Congress, the Department of the Treasury and the Federal Reserve. Check out this video to see who actually “clicks the button” and to learn how the process can backfire.  

More from Invest in You:

‘Predictably Irrational’ author says this is what investors should be doing during the pandemic
Coronavirus forced this couple into a 27-day quarantine amid their honeymoon cruise
How to prepare for a family member with Covid-19

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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