1. No one's creating money here, you're confusing monetary policy with fiscal policy. 2. Governments use fiscal policy to stimulate the economy when it's in a period of low demand, like when the country shuts down due to a pandemic. Inflation is not generally something you have to worry about when the economy is contracting (unless you live in the 70s). The government had a massive fiscal response to the 08 financial crisis, yet 2009 was our first year of deflation since the great depression. Similarly, we're actually seeing lower levels of inflation right now.
Fiscal stimulus is a sensible approach to an economic downturn, especially if it's in the form of direct cash payments or tax cuts that don't distort the market.