What Is the American Rescue Plan?

The American Rescue Plan Act of 2021 was a $1.9 trillion coronavirus rescue package designed to facilitate the United States’ recovery from the devastating economic and health effects of the COVID-19 pandemic.

It was one part of President Biden's Build Back Better plan, which also included the American Jobs Plan and the 澳洲幸运5官方开奖结果体彩网:American Families Plan. Neither the jobs nor family plan passed Congress, but parts of each made their way into the 澳洲幸运5官方开奖结果体彩网:Inflation Reduction Act, passed in August 2022.

Plan Benefits

• Direct Financial Payments: The plan provided $1,400 stimulus payments to people making $75,000 or less annually. Individuals with adjusted gross incomes (AGIs) of $75,000 or less—and couples with AGIs of $150,000 or less—received the full amount.
• Extended Unemployment Benefits: The American Rescue Plan Act extended Pandemic Unemployment Assistance (PUA) benefits of $300 a week through Sept. 6, 2021, and increased the total number of weeks available from 50 to 79. Federal Pandemic Unemployment Compensation (FPUC) benefits of $300 were also extended through Sept. 6, 2021. The first $10,200 in 2020 benefits were tax-free for families making $150,000 or less.
• Eviction and Foreclosure: Eviction and 澳洲幸运5官方开奖结果体彩网:foreclosure moratoriums were not extended under the plan. However, additional funding provided relief to those behind on mortgages, rent, and utility bills. The legislation provided:
• Food Aid: The legislation extended the 15% increase in Supplemental Nutrition Assistance Program (SNAP) benefits through Sept. 30, 2021, and provided $1.15 billion to states for SNAP administration through Sept. 30, 2023, as well as $1 billion for nutrition assistance programs in the U.S.It allocated $490 million to the USDA to increase cash-value vouchers under the Women, Infants, and Children (WIC) program. In addition, the plan allocated $390 million to increase participation in WIC through Sept. 30, 2024.
• Child Tax Credit: The Act increased the 澳洲幸运5官方开奖结果体彩网:Child Tax Credit maximum to $3,000 a year for each child ages six to 17, $3,600 for each child under age six, for couples who make $150,000 or less, and for single parents who make $112,500 or less. The law provided one year of credit payments. The regular payments helped families pay for ongoing costs instead of claiming credit when they filed their taxes. The credit was refundable, meaning everyone who qualified got it no matter their tax situation.
• Student Loan Forgiveness: While the plan did not include student loan forgiveness, it did include a provision that any student loan forgiveness passed between Dec. 30, 2020, and Jan. 1, 2026, will be tax-free. Normally, loan forgiveness counts as taxable income.
• Block Grants: The plan set aside $122 billion for K–12 education to help reduce class sizes, improve ventilation, purchase personal protective equipment, and fund other steps to help schools reopen safely. Almost $40 billion was allocated to colleges and universities to provide emergency financial aid grants for students through Sept. 30, 2023. An additional $15 billion went to childcare providers through the Child Care and Development Block Grant program through Sept. 30, 2021. The act also included $1 billion for the Head Start program through Sept. 30, 2022.
• Business Assistance: The Restaurant Revitalization Fund allocated $28.6 billion in pandemic assistance grants. The grants could provide up to $10 million per company with a limit of $5 million per physical location and be used to cover payroll, rent, utilities, and other expenses. The 澳洲幸运5官方开奖结果体彩网:Paycheck Protection Program (PPP) received an additional $7.25 billion, and more nonprofits were allowed to apply for forgivable loans to help cover payroll and other operating expenses.
• Pandemic Response: About $50 billion paid for additional COVID-19 testing and contact tracing and $7.66 billion helped increase the size of the public health workforce. About $16 billion funded vaccine distribution and supply chains. The bill provided $47.8 billion to expand federal, state, and local testing for COVID-19 and $14 billion to accelerate the distribution and administration of COVID-19 vaccines.
• State and Local Government Aid: The Plan included $350 billion in aid to states, cities, tribal governments, and U.S. territories to help replace lost tax revenue due to the pandemic.

CARES Act and Consolidated Appropriations Act

The American Rescue Plan Act (ARPA) was the third in a series of three major pieces of COVID-19 relief legislation. The CARES Act was first, followed by the Consolidated Appropriations Act (CAA), and finally, the American Rescue Plan Act (ARPA). The table below compares base funding in several key areas for each law.

The Bottom Line

The American Rescue Plan was part of Biden's Build Back Better Plan. The Plan aimed to improve the lives of Americans from the effects of the COVID-19 pandemic. Highlights of the plan include direct stimulus payments, extending unemployment, and child tax credits.