Business & Economy

On the Money: Administration to ban TikTok, WeChat | House moves toward bill to avoid government shutdown | Coronavirus relief bills boosted GDP, CBO says

Happy Friday and welcome back to On The Money. I’m Niv Elis, filling in for Sylvan Lane, with your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL—Trump pulls the plug on TikTok

The Trump administration announced Friday that it will ban WeChat and TikTok from U.S. app stores starting Sunday. The order is a significant escalation against the two Chinese-owned apps that have massive user bases in the U.S.

WeChat users will also be banned from transferring funds and processing payments through the messaging apps starting Sunday.

The Commerce Department restrictions will also bar companies from providing internet hosting, content delivery networks or peering services for WeChat or use any of the app’s code, functions or services within the U.S. as of Sunday. The same restrictions will apply to TikTok starting Nov. 12.

The stock market did not react favorably to the news. 

Read more from Chris Mills Rodrigo here.

LEADING THE DAY: Lawmakers move toward government funding deal

Congressional leaders and the White House inched toward finalizing a stopgap spending bill on Friday to avert a government shutdown on Oct. 1.

House Democrats plan to introduce legislation later Friday that would fund the government through Dec. 11, two aides confirmed.

Lawmakers were aiming to reach a deal by midday Friday, but the House held a brief pro forma session at noon without any spending legislation filed.

The main hangups had included the expiration date and aid for farmers who’ve been impacted by the coronavirus pandemic.

Read more from Cristina Marcos here.

CBO: COVID-19 rescue packages saved 4.7 percent in GDP

A string of emergency COVID-19 relief bills passed earlier in the year added 4.7 percent to gross domestic product (GDP) in 2020 and will add another 3.1 percent to the economy in 2021, according to an analysis by the nonpartisan Congressional Budget Office (CBO).

The report could also give a boost to Democrats in stalled negotiations over an additional COVID-19 relief package.

The CBO found that direct assistance to state and local governments had the largest effect on the economy. For every dollar spent on state and local aid, the economy saw an 89 cent increase through 2023, well above the 59 cent average of all the measures.

Read more details from me here.

Trump administration announces $13 billion in aid to Puerto Rico

The Trump administration on Friday announced an additional $13 billion in assistance to help Puerto Rico rebuild its infrastructure in the aftermath of Hurricane Maria, which devastated the island in 2017.

The Federal Emergency Management Agency will award grants designed to bolster Puerto Rico’s electrical grid and spur recovery of its education system.

The move comes as President Trump seeks to win over as many voters as possible in must-win Florida, home to about a million former residents of Puerto Rico, many of whom still have family on the island. 

But that’s not all…

Trump also announced another $13B in aid to farmers affected by COVID-19

Virtual Event Announcement — Monday, Sept. 21: Ecommerce and the American Small Business

“Online everything” continues to be an essential component of daily life, especially now, as Americans take safety precautions in the ongoing fight against COVID-19. How will the introduction of more small businesses to the digital, global marketplace change the way we buy and sell goods? On Monday, Sept. 21 at 1PM, The Hill Virtually Live discusses steps that can be taken to improve our digital infrastructure, and by extension, our digital economy. House Small Business Committee members Adriano Espaillat (D-N.Y.) and Kevin Hern (R-Okla.) join The Hill’s Steve Clemons. RSVP now for event reminders.

GOOD TO KNOW

OPINION