American Rescue Plan– 6thCoronavirus Stimulus Package
The American Rescue Plan passed the House and has been signed into law.
Signed into law by President Bidenon 3/11/21
$1.9 Trillion in new spending
9% addresses Coronavirus relief specifically
Much of this spending will likely not occur until long after the pandemic has ended.
Millions on food aid to foreign countries
The bill allocates funds for a third economic impact payment to qualifying Americans.
Individuals earning up to $75,000 and couples earning up to $150,000 will receive the full direct payments of $1,400 per person. Individuals will also receive an additional $1,400 payment for each dependent claimed on their tax returns.
$360 billion to help states who have mismanaged their budgets and for failing state pension funds.
Funding is said to offset financial losses of state, local, or tribal governments, not to directly combat the pandemic.
Under the Senate version that Biden signed, federal unemployment insurance payments will remain at $300 per week — down from $400 per week in the earlier package passed by the House.
The benefits will extend through Sept. 6. The Senate's bill makes the first $10,200 in unemployment payments nontaxable for households with incomes under $150,000.
Estimates say at least 58% of those unemployed will make more than if they were employed.
The legislation will temporarily expand the child tax credit, increasing the amount to $3,000 for children ages 6 to 17 and $3,600 for children under age 6.
Paycheck Protection Program
The bill includes $7.25 billion in new PPP funding and will allow more nonprofits to apply, including groups that engage in advocacy and some limited lobbying. It also allows larger nonprofits to be eligible.
There are over $128 billion in grants to state educational agencies, with 90% allocated to local educational agencies, plus $39 billion in grants to higher education institutions. Nearly $15 billion in funds are directed to the Child Care & Development Block Grant program to help support childcare facilities, particularly in high-need areas.
The Senate version signed by Biden added a provision to make any student loan forgiveness passed between Dec. 31, 2020, and Jan. 1, 2026, tax-free — rather than having the forgiven debt be treated as taxable income.
Energy and Food
The legislation includes $4.5 billion for the Low-Income Home Energy Assistance Program, known as LIHEAP, to help families with home heating and cooling costs.
One provision will give the agriculture secretary the authority and funding to temporarily boost the value of cash vouchers for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) up to $35 per month for women and children for a four-month period during the pandemic.
There is $1.4 billion in funding for programs authorized under the Older Americans Act, including support for nutrition programs, community-based support programs and the National Family Caregiver Support Program.
The bill provides $37 million to the Commodity Supplemental Food Program for low-income seniors.
The Centers for Disease Control and Prevention is set to receive $7.5 billion to track, administer and distribute COVID-19 vaccines.Another $46 billion will go toward diagnosing and tracing coronavirus infections, and $2 billion will go toward buying and distributing various testing supplies and personal protective equipment.
There's a variety of provisions in the legislation to offer support to different industries.
The Small Business Administration will get $25 billion for a new grant program for "restaurants and other food and drinking establishments." Grants will be up to $10 million per entity and $5 million per physical location, with a maximum of 20 locations.
The legislation sets aside $5 billion of the total money to be targeted to businesses with less than $500,000 in revenue in 2019.
The legislation includes another $1.25 billion for the Small Business Administration's Shuttered Venue Operators Grant program.
To support the transportation sector, the legislation allocates nearly $30 billion for transit costs, including payroll and personal protective equipment; $8 billion for airports; $3 billion for a temporary payroll support program to help support the aerospace manufacturing industry; and $1.5 billion to recall and pay Amtrak employees who were furloughed because of the pandemic and to restore various daily routes.
Another $15 billion will also be allocated to support workers in the airline industry.
There is $25 billion for emergency rental assistance, including $5 billion for emergency housing vouchers for people experiencing homelessness, survivors of domestic violence and victims of human trafficking.