What is in the American Rescue Plan?
Lawmakers have now passed a total of six major COVID relief bills at a cost of $5.3 Trillion to help our nation cope with the devastating health and economic impacts of the pandemic. The latest bill, the American Rescue Plan, comes with a $1.9 trillion price tag, and includes everything from direct payment to certain taxpayers and aid for local governments. Below is a breakdown of the major programs and their funding levels.
Direct Payment
Payments of $1,400 to taxpayers earning up to $75,000 (or $2,800 for married couples earning up to $150,000), plus an additional $1,400 per qualified child. Phaseout for income to $80,000 ($160,000 for Married Filing Joint)
Direct Aid to State, Local and Tribal Governments
$362 Billion to help various governments cover expenses and loss of revenue related to the pandemic.
Expansion of Unemployment Benefits
$203 Billion to expand unemployment programs, such as the enhanced weekly benefits of $300 through September 6th, 2021.
Tax Incentives
$176 Billion to expand and increase the Child Tax Credit, the Earned Income Tax Credit, the Employment Retention Credit, among other programs.
Public Health and Related Spending
$174 Billion funding for vaccine distribution, coronavirus testing, contact tracing and other public health measures.
Education Support
$170 Billion primarily to help K-12 schools safely reopen. Colleges and other higher education institutions would also receive funding.
Other Programs
$301 Billion for other programs such as food aid, small business support, emergency rental assistance and relief for homelessness.