Mnuchin said that he is requesting that the Fed return to Treasury the unused funds appropriated by Congress for operation of the programs.
Treasury Secretary Steven Mnuchin called on the Federal Reserve Thursday to let several of its emergency lending programs expire at yearend, and return unused funds appropriated by the Coronavirus Aid, Relief and Economic Security Act to backstop the facilities.
In a letter to Fed Chairman Jay Powell on Thursday, Mnuchin said the central bank held some $455 billion from the COVID-relief package passed back in March.
The central bank said it "would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy".
"While portions of the economy are still severely impacted and in need of additional fiscal support, financial conditions have responded and the use of these facilities has been limited", Mnuchin said.
"Luckily, whatever the Trump Treasury does, the Biden Administration has the authority to ask the Fed to restart these lending programs next year", he added.
"We made that decision and you'll hear that just before or just after Thanksgiving", Biden told reporters, referring to the November 26 holiday.
The uncertainty in markets will hamstring risk assets.
Yields on 10-year Treasuries dropped about two basis points amid the news to end Thursday at 0.83%.
But Fed officials have emphasised in recent days that the broad economy is not yet out of the woods, with the pandemic spreading, millions unemployed and important business sectors suffering Depression-level downturns.
Treasury Secretary Steven Mnuchin said it was legislators' intention for the Federal Reserve to return unused CARES Act funds by yearend.
The programmes, particularly the "Main Street" and local government landing programmes, raised the prospect of trillions of dollars in central bank credit flooding into an economy that had been partially shut down in the spring because of the pandemic.
Neither program has lived up to its potential so far, with the Municipal Lending program making just one loan, while the Main Street program has made loans totaling around $4 billion to about 400 companies.
He as essentially rejected the central bank's request for a 90-day extension for four emergency lending programs.
Some Republicans in Congress now felt it was time for the Fed to retrench, even with coronavirus infections at record levels and deployment of a vaccine likely months off.
Financial sources close to Biden have named Federal Reserve governor Lael Brainard as a frontrunner among people the president-elect is considering.
"These facilities ... have successfully achieved their intended objective", he said. "How many times will Washington trip on its shoelaces in response to this crisis?"