The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, is a
economic stimulus bill passed by the
117th United States Congress and signed into law by
President
President most commonly refers to:
*President (corporate title)
* President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese f ...
Joe Biden on March 11, 2021, to speed up the country's recovery from the
economic
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with t ...
and health effects of the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identified ...
and the ongoing
recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
. First proposed on January 14, 2021, the package builds upon many of the measures in the
CARES Act from March 2020 and in the
Consolidated Appropriations Act, 2021, from December.
Beginning on February 2, 2021,
Democrats in the
United States Senate
The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States.
The composition and ...
started to open debates on a
budget resolution that would allow them to pass the stimulus package through the process of
reconciliation which would not require support from
Republicans
Republican can refer to:
Political ideology
* An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law.
** Republicanism, the ideology in support of republics or agains ...
. The
House of Representatives
House of Representatives is the name of legislative bodies in many countries and sub-national entitles. In many countries, the House of Representatives is the lower house of a bicameral legislature, with the corresponding upper house often c ...
voted 218–212 to approve its version of the budget resolution. A so-called ''
vote-a-rama'' session started two days later after the resolution was approved, and the Senate introduced amendments in the relief package. The day after,
Vice President
A vice president, also director in British English, is an officer in government or business who is below the president (chief executive officer) in rank. It can also refer to executive vice presidents, signifying that the vice president is o ...
Kamala Harris
Kamala Devi Harris ( ; born October 20, 1964) is an American politician and attorney who is the 49th vice president of the United States. She is the first female vice president and the highest-ranking female official in U.S. history, as well ...
cast her first
tie-breaking vote as vice president in order to give the Senate's approval to start the reconciliation process, with the House following suit by voting 219–209 to agree to the Senate version of the resolution.
On February 8, 2021, the
Financial Services
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companie ...
and
Education and Labor committees released a draft of $1.9 trillion stimulus legislation. A portion of the relief package was approved by the
House Ways and Means
The Committee on Ways and Means is the chief tax-writing committee of the United States House of Representatives. The committee has jurisdiction over all taxation, tariffs, and other revenue-raising measures, as well as a number of other program ...
on February 11, setting it up for a vote in the House. The legislation was also approved by the
Transportation and Infrastructure,
Small Business, and
House Veterans Affairs committees. On February 22, the
House Budget Committee voted 19–16 to advance the bill to the House for a floor vote. The bill passed the House by a vote of 219–212 on February 27. All but two Democrats voted for the bill and all Republicans voted against the bill. A modified version passed the Senate on March 6 by a vote of 50–49. The final amended bill was passed by the House on March 10 by a vote of 220–211 with
one Democrat voting against it with all Republicans. The bill was signed into law by President Biden on March 11, 2021, which was the first anniversary of COVID-19 being declared a pandemic by the
World Health Organization
The World Health Organization (WHO) is a specialized agency of the United Nations responsible for international public health. The WHO Constitution states its main objective as "the attainment by all peoples of the highest possible level o ...
.
Background
Impact of the COVID-19 pandemic
By mid-2020, the United States was facing what the
National Bureau of Economic Research
The National Bureau of Economic Research (NBER) is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic c ...
determined was an economic recession, and by February 2021, 500,000 Americans had died of COVID-19. Over 29 million Americans had tested positive for
COVID-19
Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quickl ...
by March. The United States also faced eviction, unemployment, and hunger crises since the start of the pandemic. Over 30 to 40 million Americans faced a risk of being evicted from their homes by January 2021. Then-president
Donald Trump
Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
Trump graduated from the Wharton School of the University of ...
also faced criticism for not having a federal strategy to combat the pandemic, such as nationwide mask mandates on transportation, a mass testing strategy, health guidelines, providing medical-grade protective gear, and having an effective vaccine distribution strategy. On January 20, the day after
Joe Biden was
inaugurated, he warned that the death toll could exceed 500,000. According to
Snopes
''Snopes'' , formerly known as the ''Urban Legends Reference Pages'', is a fact-checking website. It has been described as a "well-regarded reference for sorting out myths and rumors" on the Internet. The site has also been seen as a source ...
, Biden inherited a vaccine distribution strategy from Trump, and disease expert
Anthony Fauci
Anthony Stephen Fauci (; born December 24, 1940) is an American physician-scientist and immunologist serving as the director of the National Institute of Allergy and Infectious Diseases (NIAID) and the chief medical advisor to the preside ...
said that his administration would incorporate some aspects of that Trump-era strategy in its ongoing work.
Previous COVID-19 pandemic legislation
Prior to the passing of the American Rescue Plan, the
CARES Act and
Consolidated Appropriations Act, 2021 were signed into law by then-
president
President most commonly refers to:
*President (corporate title)
* President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese f ...
Donald Trump
Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
Trump graduated from the Wharton School of the University of ...
in March and December 2020, respectively. Trump previously expressed support for direct payments of $2,000 along with
Joe Biden and many
Democrats. Even though Trump called for Congress to pass a bill increasing direct payments from $600 to $2,000, then-
Senate Majority Leader
The positions of majority leader and minority leader are held by two United States senators and members of the party leadership of the United States Senate. They serve as the chief spokespersons for their respective political parties holdin ...
Mitch McConnell
Addison Mitchell McConnell III (born February 20, 1942) is an American politician and retired attorney serving as the senior United States senator from Kentucky and the Senate minority leader since 2021. Currently in his seventh term, McConn ...
blocked the effort. Additionally, the House voted on the
HEROES Act in May 2020, which would operate as a $3 trillion relief package. Despite approval in the lower chambers, the Republican-led Senate would not consider such a bill, citing it to be "dead on arrival". Prior to the
Georgia Senate runoffs, Biden said that the direct payments of $2,000 would be passed only if Democratic candidates
Jon Ossoff
Thomas Jonathan Ossoff ( ; born February 16, 1987) is an American politician serving as the senior United States senator from Georgia since 2021. A member of the Democratic Party, Ossoff was previously a documentary filmmaker and investigative ...
and
Raphael Warnock
Raphael Gamaliel Warnock ( ; born July 23, 1969) is an American Baptist pastor and politician serving as the Seniority in the United States Senate, junior United States Senate, United States senator from Georgia (U.S. state), Georgia since 2021. ...
won; the promise of comprehensive COVID-19 relief legislation was reported as a factor in their eventual victories. On January 14, prior to being
inaugurated as president, Biden announced the $1.9 trillion stimulus package.
Legislative history
Negotiations
Ten Republican senators announced plans to unveil a roughly $600 billion COVID-19 relief package as a counterproposal to President Joe Biden's $1.9 trillion plan meant to force negotiations. The senators, including
Susan Collins
Susan Margaret Collins (born December 7, 1952) is an American politician serving as the senior United States senator from Maine. A member of the Republican Party, she has held her seat since 1997 and is Maine's longest-serving member of Con ...
of Maine,
Lisa Murkowski
Lisa Ann Murkowski ( ; born May 22, 1957) is an American attorney and politician serving as the senior United States senator for Alaska, having held that seat since 2002. Murkowski is the second-most senior Republican woman in the Senate, after ...
of Alaska,
Mitt Romney
Willard Mitt Romney (born March 12, 1947) is an American politician, businessman, and lawyer serving as the junior United States senator from Utah since January 2019, succeeding Orrin Hatch. He served as the 70th governor of Massachusett ...
of Utah and
Rob Portman
Robert Jones Portman (born December 19, 1955) is an American attorney and politician serving as the Seniority in the United States Senate, junior United States Senate, United States senator from Ohio since 2011. A member of the Republican Party ...
of Ohio, told Biden in a letter that they devised the plan "in the spirit of bipartisanship and unity" that the President has urged and said they planned to release a full proposal on February 1. On the same day,
House Speaker
The speaker of a deliberative assembly, especially a legislative body, is its presiding officer, or the chair. The title was first used in 1377 in England.
Usage
The title was first recorded in 1377 to describe the role of Thomas de Hungerfo ...
Nancy Pelosi
Nancy Patricia Pelosi (; ; born March 26, 1940) is an American politician who has served as Speaker of the United States House of Representatives since 2019 and previously from 2007 to 2011. She has represented in the United States House of ...
and
Senate Majority Leader
The positions of majority leader and minority leader are held by two United States senators and members of the party leadership of the United States Senate. They serve as the chief spokespersons for their respective political parties holdin ...
Chuck Schumer
Charles Ellis Schumer ( ; born November 23, 1950) is an American politician serving as Senate Majority Leader since January 20, 2021. A member of the Democratic Party, Schumer is in his fourth Senate term, having held his seat since 1999, and ...
introduced a
budget resolution co-sponsored by
Bernie Sanders as a step to pass the legislation without support from the
Republican Party
Republican Party is a name used by many political parties around the world, though the term most commonly refers to the United States' Republican Party.
Republican Party may also refer to:
Africa
*Republican Party (Liberia)
* Republican Part ...
. The next day, Biden met with Majority Leader Schumer and other
Democrats regarding the relief package.
On February 7,
Transportation Secretary Pete Buttigieg
Peter Paul Montgomery Buttigieg ( ; ; Sometimes pronounced or , but not by Buttigieg himself. born January 19, 1982) is an American politician and former military officer who is currently serving as the United States secretary of trans ...
and
Treasury Secretary Janet Yellen expressed support for the stimulus package. Yellen said that the funding would help millions of Americans and rejected concerns the colossal spending could cause inflation. Yellen also said that the stimulus package would restore full employment by 2022. On February 9, Biden met with
JPMorgan Chase
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the w ...
CEO Jamie Dimon
James Dimon (; born March 13, 1956) is an American billionaire businessman and banker who has been the chairman and chief executive officer of JPMorgan Chase – the largest of the big four American banks – since 2005. Dimon was previously on ...
and other CEOs to discuss the stimulus plan, with Yellen and Harris taking part in the meeting. On February 11, Pelosi said that she expects lawmakers to complete the legislation by the end of February, and for the legislation to be signed into law by March 14.
On February 16, Biden promoted his stimulus plan in a visit in
Milwaukee
Milwaukee ( ), officially the City of Milwaukee, is both the most populous and most densely populated city in the U.S. state of Wisconsin and the county seat of Milwaukee County, Wisconsin, Milwaukee County. With a population of 577,222 at th ...
,
Wisconsin
Wisconsin () is a state in the upper Midwestern United States. Wisconsin is the 25th-largest state by total area and the 20th-most populous. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake M ...
during his first official trip as president. He promoted it via a
CNN townhall meeting with voters. On February 18, Yellen called for major stimulus checks during an interview on
CNBC
CNBC (formerly Consumer News and Business Channel) is an American basic cable business news channel. It provides business news programming on weekdays from 5:00 a.m. to 7:00 p.m., Eastern Time, while broadcasting talk sh ...
, and said that stimulus checks would help the economy stage a full recovery.
Budget resolution passage
The
United States Senate
The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States.
The composition and ...
voted 50–49 to open debate on the resolution, which would allow
Democrats to pass the relief package without support from
Republicans
Republican can refer to:
Political ideology
* An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law.
** Republicanism, the ideology in support of republics or agains ...
through the process of
reconciliation. The
House
A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air ...
voted 218–212 to approve the budget resolution. On February 4, a vote-a-rama session began, and the Senate introduced amendments to the relief package, including an amendment in a 90–10 vote that would provide direct relief to the restaurant industry.
Vice President
A vice president, also director in British English, is an officer in government or business who is below the president (chief executive officer) in rank. It can also refer to executive vice presidents, signifying that the vice president is o ...
Kamala Harris
Kamala Devi Harris ( ; born October 20, 1964) is an American politician and attorney who is the 49th vice president of the United States. She is the first female vice president and the highest-ranking female official in U.S. history, as well ...
cast a
tie-breaking vote as President of the Senate for final Senate passage of the reconciliation bill, sending it to the House approval of the changes, and allowing drafting of the relief bill to begin in the committees. The House approved the resolution 219–209, with
Jared Golden
Jared Forrest Golden (born July 25, 1982) is an American politician and a Marine Corps veteran serving as the U.S. representative for Maine's 2nd congressional district since 2019. A member of the Democratic Party, his district, the largest ea ...
being the sole Democrat to join all Republicans in opposition to the bill due to a preference for a separate vaccine bill instead of the longer reconciliation process.
One of the many non-binding budget amendments in the vote-a-rama session was meant to prohibit people who are
in the country illegally from receiving pandemic relief checks. The non-binding amendments are not likely to have any effect on the final relief bill. The minority party uses the hundreds of non-binding votes in the hours-long vote-a-rama session to send messages. Under current law, people in the country unlawfully are already prohibited from receiving checks. The amendment passed with eight Democrats joining all Republicans. The amendment received criticism from progressive immigration activist
Greisa Martínez Rosas
Greisa Martínez Rosas is a Mexican immigrant rights activist based in Dallas. She is executive director of the advocacy organization, United We Dream.
Early life and education
Martínez Rosas was born in Hidalgo, Mexico to Elia Rosas and Luis ...
and Senator
Mazie Hirono
Mazie Keiko Hirono (; Japanese name: , ; born November 3, 1947) is an American lawyer and politician serving as the junior United States senator from Hawaii since 2013. A member of the Democratic Party, Hirono previously served as a member of th ...
(D-
HI). The
White House
The White House is the official residence and workplace of the president of the United States. It is located at 1600 Pennsylvania Avenue Northwest, Washington, D.C., NW in Washington, D.C., and has been the residence of every U.S. preside ...
later stated that it would continue to support legislation that would give all otherwise eligible individuals with
social security numbers stimulus checks.
Budget reconciliation passage
On February 8, a draft of the $1.9 trillion stimulus legislation was released by the
Financial Services
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companie ...
and
Education and Labor committees.
On February 11, the
House Ways and Means Committee advanced a portion of the $1.9 trillion relief package. The legislation was also approved by several other House committees such as the
Transportation and Infrastructure,
Small Business, and
House Veterans Affairs.
On February 19, the full text of the bill was released. It included an increase in the federal minimum wage, direct checks for Americans making $75,000 or less a year, an extension of $400 federal unemployment benefits and more money for small businesses.
On February 22, the
House Budget Committee voted 19–16 to advance the bill. The following day, House Majority Leader
Steny Hoyer
Steny Hamilton Hoyer (born June 14, 1939) is an American politician and attorney serving as the U.S. representative for since 1981 and as House Majority Leader since 2019. A Democrat, Hoyer was first elected in a special election on May 19, 19 ...
announced that the House vote would occur that Friday. On February 26, the House passed the trillion dollar relief package by a vote of 219–212; two Democrats,
Kurt Schrader (OR) and
Jared Golden
Jared Forrest Golden (born July 25, 1982) is an American politician and a Marine Corps veteran serving as the U.S. representative for Maine's 2nd congressional district since 2019. A member of the Democratic Party, his district, the largest ea ...
(ME) joined all Republicans in opposition.
Senate majority Leader
Chuck Schumer
Charles Ellis Schumer ( ; born November 23, 1950) is an American politician serving as Senate Majority Leader since January 20, 2021. A member of the Democratic Party, Schumer is in his fourth Senate term, having held his seat since 1999, and ...
predicted that the Senate would pass the bill before March 14. On March 4, Schumer introduced the Senate version of the bill on the floor, which had a few changes to the House bill. The Senate voted 51–50 to advance the relief bill and allow debates to begin, with Harris casting the tie-breaking vote.
Ron Johnson objected to Schumer's request to skip the reading of the bill, forcing the Senate clerks to read aloud the entire 628-page Senate bill, delaying the Senate amendment process for up to 15 hours.
On March 5, the Senate reconvened and had 3 hours of debate, and thereafter moved to the "vote-a-rama" session, where senators would have the opportunity to introduce, debate, and vote on amendments.
There were multiple amendments brought onto the Senate floor.
Bernie Sanders introduced the first amendment to raise the federal minimum wage to $15 per hour. All Republicans and eight Democrats voted against the amendment. After the vote, Sanders stated he was not surprised by the outcome and vowed that progressives would keep fighting on other fronts to raise the minimum wage.
[ Senator ]Tom Carper
Thomas Richard Carper (born January 23, 1947) is an American politician and former military officer serving as the senior United States senator from Delaware, having held the seat since 2001. A member of the Democratic Party, Carper served in ...
introduced an amendment which would extend the unemployment benefits through the end of September but would cut the benefits from $400 to $300. The amendment also did not tax the first $10,200 of unemployment benefits. Senator Joe Manchin, a key vote in the Senate, disagreed with Carper's amendment, stalling the Senate amendment process for hours while his Democratic colleagues and the White House pressured him to support Carper's amendment. Manchin had initially signalled he would support a GOP-backed amendment by Portman to cut off the unemployment benefits at July. After hours of negotiations between top Senate Democrats and the White House, Manchin stated he would back a revised version of Carper's amendment which would cut off the unemployment benefits at September 6. The final vote was 50 to 49 on party lines, and the bill was sent back to the House for final passage.
Minimum wage provision
President Biden doubted that his desire to increase the federal minimum wage
A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Most countries had introduced minimum wage legislation by the end of the 20th century. B ...
to $15 an hour would be included in the final coronavirus relief package. Biden predicted that Senate rules for budget reconciliation would prevent the increase from going forward. While recent polling indicates that support for increasing the minimum wage to $15 an hour ranges from 53 to 60%, Democratic Senators Joe Manchin
Joseph Manchin III (born August 24, 1947) is an American politician and businessman serving as the senior United States senator from West Virginia, a seat he has held since 2010. A member of the Democratic Party, Manchin was the 34th governor o ...
and Kyrsten Sinema
Kyrsten Lea Sinema (; born July 12, 1976) is an American politician and former social worker serving as the senior United States senator from Arizona since January 2019. A former member of the Democratic Party, Sinema became an independent in ...
opposed this provision and threatened to derail the bill over this issue.
On February 25, the day before the full House vote, the Senate Parliamentarian Elizabeth MacDonough ruled that the proposal to add the minimum wage provision to the stimulus bill was not compatible with the Senate's budget reconciliation process. Pelosi stated later that day that the House will still approve the bill with the minimum wage raise, although it will have to be amended out in the final Senate bill to comply with the parliamentarian's ruling. Progressive Democrats and liberal groups urged Harris to overrule MacDonough (which she has the constitutional power to do as president of the Senate) or for Senate Democratic leadership to replace her (which the Republicans did once before, firing Robert Dove in 2001 after he made a series of rulings blocking tax cuts from being considered under the 51-vote budget reconciliation process); however, neither course was taken. On March 5, eight members of the Senate Democratic caucus
The Democratic Caucus of the United States Senate, sometimes referred to as the Democratic Conference, is the formal organization of all senators who are part of the Democratic Party (United States), Democratic Party in the United States Senate. ...
joined all 50 Republican Senators to reject an amendment raised by Senator Sanders to increase the minimum wage to $15 in the bill.
In a budget analysis released in February 2021, the Congressional Budget Office
The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.
Inspired by California's Legislative Analyst's Office that manag ...
found that increasing the minimum wage to $15 would lift 900,000 people out of poverty and cumulatively raise the wage of all affected people by $333 billion, but also could increase the cumulative budget deficit, over the next decade, to $54 billion (and add $16 billion in interest costs) and reduce employment by 0.9% (1.4 million jobs) over four years.
Republican Senators Mitt Romney
Willard Mitt Romney (born March 12, 1947) is an American politician, businessman, and lawyer serving as the junior United States senator from Utah since January 2019, succeeding Orrin Hatch. He served as the 70th governor of Massachusett ...
and Tom Cotton introduced their own bill, which would raise the minimum wage to $10, phasing in gradually to 2025. The minimum wage would biennially rise with inflation, indexed to the chained consumer price index. Businesses would also be required to use the E-Verify system so to ensure that workers paid the higher wages are legal immigrants and eligible to work. Adult workers would have to provide a photo ID, states would be incentivized to share driver's-license data with the system, and the federal government would make more of an effort to block or suspend misused Social Security numbers.
Other excluded provisions
The House-passed bill included $1.5 million to cover operating shortfalls on the New York-Ontario Seaway International Bridge (caused by border closures), and $140 million for the Silicon Valley BART extension
The Silicon Valley BART extension is an ongoing effort to expand service by Bay Area Rapid Transit (BART) into Santa Clara County, California, Santa Clara County via the East Bay from its former terminus at the Fremont station (BART), Fremont st ...
. Both provisions were removed from the Senate bill due to Republican opposition.
Final passage
On March 10, 2021, the House passed the Senate bill on a near party-line (Jared Golden
Jared Forrest Golden (born July 25, 1982) is an American politician and a Marine Corps veteran serving as the U.S. representative for Maine's 2nd congressional district since 2019. A member of the Democratic Party, his district, the largest ea ...
voted against) vote of 220–211 (concurring in the Senate amendments), sending the bill to President Biden for his signature.[Emily Cochrane]
Congress Clears $1.9 Trillion Aid Bill, Sending It to Biden
''New York Times'' (March 10, 2021). Biden signed the bill the following day, on March 11, 2021. On March 15, 2021, the White House announced that Gene Sperling will oversee the implementation of the bill. Following the signing, Biden and his top messengers kicked off a "Help is Here" tour across the country to promote the legislation, with Harris visiting a COVID-19 vaccination site in Las Vegas
Las Vegas (; Spanish language, Spanish for "The Meadows"), often known simply as Vegas, is the List of United States cities by population, 25th-most populous city in the United States, the most populous city in the U.S. state, state of Neva ...
and First Lady Jill Biden
Jill Tracy Jacobs Biden (born June 3, 1951) is an American educator and the current first lady of the United States since 2021, as the wife of President Joe Biden. She was the second lady of the United States from 2009 to 2017 when her hus ...
visiting an elementary school in New Jersey
New Jersey is a U.S. state, state in the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. It is bordered on the north and east by the state of New York (state), New York; on the ea ...
. On March 16, Biden promoted the bill in Chester, Pennsylvania
Chester is a city in Delaware County, Pennsylvania, United States. Located within the Philadelphia Metropolitan Area, it is the only city in Delaware County and had a population of 32,605 as of the 2020 census.
Incorporated in 1682, Chester ...
.
Amendment
Preliminary injunctions issued in federal district court cases halted section 1005 payments, which related to socially disadvantaged farmers and ranchers In the United States, socially disadvantaged farmers and ranchers, for the purposes of USDA outreach and assistance, are defined under the 1990 farm bill as members of a socially disadvantaged group, which is defined to mean those whose identity in ...
. Section 1005 was repealed by the Inflation Reduction Act of 2022
The Inflation Reduction Act of 2022 (IRA) is a landmark United States federal law which aims to curb inflation by reducing the deficit, lowering prescription drug prices, and investing into domestic energy production while promoting clean ener ...
.
Key elements
The Act also allocates $60 billion to counties and $10 billion for a Coronavirus Capital Projects Fund.[ (The bill initially passed by the House would have instead allocated $65 billion to counties and $65 billion to municipalities; rather, the Senate formula was adopted).][ Key elements and provisions of the Act include:
]
Employment
* Extending expanded unemployment benefits with a $300 weekly supplement through Labor Day
Labor Day is a federal holiday in the United States celebrated on the first Monday in September to honor and recognize the American labor movement and the works and contributions of laborers to the development and achievements of the United ...
(September 6, 2021), preventing benefits from expiring on March 31, 2021[Emily Cochrane]
Divided Senate Passes Biden's Pandemic Aid Plan
''New York Times'' (March 6, 2021).
** Most Democrats favored a higher amount (with the bill initially passed by the House providing for $400 weekly supplement) and some favored a longer duration (through early October); however, the final bill contained a scaled-back provision, at the insistence of Senator Joe Manchin
Joseph Manchin III (born August 24, 1947) is an American politician and businessman serving as the senior United States senator from West Virginia, a seat he has held since 2010. A member of the Democratic Party, Manchin was the 34th governor o ...
of West Virginia
West Virginia is a state in the Appalachian, Mid-Atlantic and Southeastern regions of the United States.The Census Bureau and the Association of American Geographers classify West Virginia as part of the Southern United States while the ...
, and other moderate Senate Democrats.[Tony Romm, Jeff Stein and Erica Werner]
Senate passes Biden's $1.9 trillion coronavirus relief bill after voting overnight on amendments, sends measure back to House
''Washington Post'' (March 6, 2021).[Tami Luhby & Katie Lobosco]
CNN (March 6, 2021).
*The act makes the first $10,200 in unemployment benefits for 2020 not taxable for households with incomes below $150,000, thus avoiding the risk of many workers incurring surprise federal tax liability.[
*$1,400 direct economic stimulus payments to individuals.][
**Under pressure from Manchin, Biden agreed to have the direct payment start to phase out for high-income taxpayers, including some who received stimulus checks in previous stimulus rounds.][Li Zhou & Emily Stewart]
The Senate just passed the $1.9 trillion stimulus package. Here's what in it.
''Vox'' (March 6, 2021). The stimulus benefit begins to phase out for taxpayers making $75,000 for individuals, $112,500 for single parents, and $150,000 for couples; taxpayers making more than $80,000 for individuals, $120,000 for single parents, and $160,000 for households will not receive any payment.[ (House Democrats and Biden had favored less stringent caps; the bill initially passed by the House set income caps $100,000 for individuals and $200,000 for couples).][
*Unlike in past rounds of stimulus payments, otherwise eligible adult dependents will receive payments,][ including college students,][ SSI recipients, and SSDI recipients.][More than stimulus checks: All the tax breaks parents and retirees should know]
''CNET'' (March 5, 2021).
*Emergency paid leave for over 100 million Americans
*The Act provides a tax credit
A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or a form of state "disc ...
, through October 1, 2021, to employers who choose to offer paid sick leave and paid family leave benefits. However, the Act did not require employers to provide the benefit, as Biden initially proposed.[
*Extends a 15% increase in ]food stamp
In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for low- and no-income people. It is a federal aid program, ad ...
benefits (the increase, passed in previous rounds of stimulus; was set to expire at the end of June 2021; the bill extends it through September 2021).[
]
Tax provisions
*Expands the child tax credit
A child tax credit (CTC) is a tax credit for parents with dependent children given by various countries. The credit is often linked to the number of dependent children a taxpayer has and sometimes the taxpayer's income level. For example, in t ...
[ from $2000 per child, by allowing qualifying families to offset, for the 2021 tax year, $3,000 per child up to age 17 and $3,600 per child under age.][ The bill expanded the credit to families with very low-incomes or no taxable income who did not previously qualify because of the minimum income requirement, while the size of the benefit will gradually diminish for single filers earning more than $75,000 per year, or married couples making more than $150,000 a year.][ Additionally, this credit is now fully refundable, and half of the benefit can be sent out to eligible households in 2021 in the form of monthly payments of $250-$300 per child. ]Senator
A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the e ...
Mitt Romney
Willard Mitt Romney (born March 12, 1947) is an American politician, businessman, and lawyer serving as the junior United States senator from Utah since January 2019, succeeding Orrin Hatch. He served as the 70th governor of Massachusett ...
of Utah
Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to its ...
introduced a similar bill four days earlier, but did not vote in favor of the bill.
*Expands the child and dependent care credit by making the credit fully refundable and increasing the maximum benefit to $4,000 for one eligible individual and $8,000 for two or more eligible individuals.[ Additionally, the value of this credit will now be based on 50% of the value of eligible expenses. The income limit for receiving this credit is also increased to $125,000 for households. These changes are also for 2021 only.
*Expands the ]earned income tax credit
The United States federal earned income tax credit or earned income credit (EITC or EIC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends ...
by removing the upper age limit and lowering the lower age limit to 19. The maximum benefit for adults not claiming a qualifying child will also be increased to $1,502. These provisions are for 2021 only. A permanent change was made to raise the limit on investment income from $3,650 to $10,000, furthermore indexed by inflation; and to allow adults with children who do not qualify to claim the credit, to claim it only for themselves.
*Forgiven student loan debt is made tax-free, should Biden or Congress decide to cancel any debt.[
** Reduction of reporting requirement threshold ( 1099-K) for third party settlement organizations (e.g. PayPal) from over $20,000 and 200 transactions to over $600 and no minimum number of transaction, effective from tax year 2022. This is expected to impact gig workers, ]independent contractors
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any ot ...
, casual eBay
eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became ...
sellers, among others. This amendment is projected to generate $8.4 billion over the next decade.
*Three tax increases on large corporations and wealthy individuals, collectively raising $60 billion in revenue.[Brian Faler]
A $60 billion surprise in the Covid relief bill: Tax hikes
''Politico'' (March 10, 2021). These are:
**Limits publicly traded companies' ability to deduct executive compensation
Executive compensation is composed of both the financial compensation (executive pay) and other non-financial benefits received by an executive from their employing firm in return for their service. It is typically a mixture of fixed salary, variab ...
(for employees more than $1 million) from their corporate taxes (will generate $6 billion in tax revenue).[
**Repeals an obscure provision in the tax code that gave multinational corporations additional discretion in accounting for interest expenses (will generate $22 billion in tax revenue).][
**Extends "loss limitation" restrictions on unincorporated businesses (will generate $31 billion in tax revenue)][
*Grants to small businesses,] specifically:
**$28.6 billion for the Restaurant Revitalization Fund
The Restaurant Revitalization Fund is a $28.6 billion fund administered by the U.S. Small Business Administration
The United States Small Business Administration (SBA) is an independent agency of the United States government that provides suppor ...
, a new grant program for restaurants and bars to meet payroll and other expenses. Individual businesses will be eligible for $5 million each.[Tory Newmyer]
The business winners in Biden's relief package: Restaurants, concert venues and airplane manufacturers
''Washington Post'' (March 7, 2021).[
**$15 billion for Emergency Injury Disaster Loans (a long-term, low-interest loan program of the ]Small Business Administration
The United States Small Business Administration (SBA) is an independent agency of the United States government that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and str ...
); priority for some funds would go to "severely impacted small businesses with fewer than 10 workers".[
**An additional $7 billion for the ]Paycheck Protection Program
The Paycheck Protection Program (PPP) is a $953-billion business loan program established by the United States federal government during the Donald Trump administration in 2020 through the Coronavirus Aid, Relief, and Economic Security Act (CAR ...
, and an expansion of the eligibility criteria to some non-profit organizations previously excluded from the program.[
**$3 billion for a payroll support program for aviation manufacturers. The industry itself will be responsible for funding half of the program, and the program will last six months.][
**$1.25 billion in funding for the Shuttered Venue Operators Grant for music halls and other concert venues][
**$175 million for a Community Navigator Program to reach out to eligible businesses.][
**Funding for the Recovery Startup provision of the Employee Retention Tax Credit (ERTC), a refundable payroll tax credit. Small businesses that launch a new offering after February 15, 2020, can claim up to $7,000 per employee per quarter in Q3/Q4 2021, capped at $100,000.]
State, local, and tribal government aid
*$350 billion to help state, local, and tribal governments bridge budget shortfalls and mitigate the fiscal shock.[Tami Luhby]
With Congress poised to give states and local governments $350 billion, pandemic budget hit for many was smaller than predicted
CNN (March 5, 2021).
*A total of $195 billion would be allocated among the states and the District of Columbia
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan ...
, and the tribes and territories would be allocated about $25 billion.[
]
Education
*$122 billion for K-12
K-1 is a professional kickboxing promotion established in 1993, well known worldwide mainly for its heavyweight division fights and Grand Prix tournaments. In January 2012, K-1 Global Holdings Limited, a company registered in Hong Kong, acquir ...
schools,[ to safely reopen most schools within 100 days.]
**T K-12 school funds may be used to improve ventilation in school buildings, reduce class sizes to make social distancing
In public health, social distancing, also called physical distancing, (NB. Regula Venske is president of the PEN Centre Germany.) is a set of non-pharmaceutical interventions or measures intended to prevent the spread of a contagious dise ...
possible, purchase personal protective equipment
Personal protective equipment (PPE) is protective clothing, helmets, goggles, or other garments or equipment designed to protect the wearer's body from injury or infection. The hazards addressed by protective equipment include physical, ...
, and hire support staff.[Tami Luhby and Katie Lobosco]
Here's what's in the Senate stimulus plan
CNN (March 6, 2021).
**At least half of the money to colleges and universities must go to emergency grants to students.[Kery Murakami]
$40 Billion for Colleges
''InsiderHigherEd'' (March 8, 2021).
**20% of school funding must be directed to programs to help counteract "learning loss" for students who missed school during the pandemic.[
*Almost $40 billion for colleges and universities,][ including:
**Over $10 billion to over 1,000 community colleges]
**Over $2.7 billion to Historically Black Colleges and Universities (HBCUs)[
**Over $190 million to Tribally Controlled Colleges and Universities (TCCUs)][
**About $11 billion to Hispanic-serving institutions (HSIs)][
**About $5 billion to Asian American and Native American Pacific Islander-serving institutions (AANAPISIs)][
**Almost $1 billion to Predominantly Black Institutions (PBIs)][
]
Housing
*$21.6 billion for rental assistance programs. This fund will provide money to states and local governments, which will then provide grants to eligible households. These grants can be used to pay for rental assistance as well as utility fees.
*$10 billion for the Homeowner Assistance Fund. This fund will allocate money to states and local governments, which will then give grants to homeowners to prevent them from defaulting on their mortgage or foreclosing on their home. These grants can also be used to pay for flood insurance premiums, HOA
The Hoa people (Vietnamese: ''Người Hoa'', or ) are citizens of Vietnam of full or partial Chinese origin. Chinese migration into Vietnam dates back millennia but most Hoa today derive their recent ancestral Chinese heritage from the 18th ...
fees, utility bills, and any other necessary payments to prevent the homeowner from losing their home.[
*$5 billion for the Section 8 Housing Choice Voucher Program. These funds must go to those who are or were recently homeless, as well as individuals who are escaping from domestic violence, sexual assault, or human trafficking.][
*$5 billion to support state and local programs for the homeless and at-risk individuals. These funds can be used for rental assistance, housing counseling, and homelessness prevention services.][ Additionally, these grants can be used by state and local governments to buy and convert commercial properties into permanent shelters or affordable housing.]
*$4.5 billion for the Low-Income Home Energy Assistance Program, which will assist homeowners with the costs of heating and cooling.[
*$750 million for housing assistance for tribes and Native Hawaiians. These grants can be used by tribal nations or Native Hawaiians to pay rent or stay housed.][
*$500 million in grants for low-income homes to help with water services.][
*$139 million for rural housing assistance programs.][
*$120 million for housing counseling services.][
]
COVID-19 Provisions
The bill contains the following COVID-19
Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quickl ...
funding (including for COVID-19 vaccine
A COVID19 vaccine is a vaccine intended to provide acquired immunity against severe acute respiratory syndrome coronavirus 2 (SARS‑CoV‑2), the virus that causes coronavirus disease 2019 (COVID19).
Prior to the COVID19 pandemic, an est ...
s, testing, and contact tracing
In public health, contact tracing is the process of identifying persons who may have been exposed to an infected person ("contacts") and subsequent collection of further data to assess transmission. By tracing the contacts of infected individua ...
) and other healthcare-related funding:
*$50 billion to the Federal Emergency Management Agency
The Federal Emergency Management Agency (FEMA) is an agency of the United States Department of Homeland Security (DHS), initially created under President Jimmy Carter by Presidential Reorganization Plan No. 3 of 1978 and implemented by two Exe ...
for vaccine distribution and assistance. Additionally, FEMA will reimburse up to $9,000 for a funeral held for a COVID-19 victim.
*$47.8 billion on COVID-19 testing, mitigation, and transmission prevention, including diagnosis, tracing, and monitoring.[U.S. House Passes American Rescue Plan – 15 Provisions for Healthcare Providers](_blank)
McGuireWoods LLP/''JDSupra'' (March 2, 2021).
*$13.48 billion for Department of Veterans Affairs
The United States Department of Veterans Affairs (VA) is a Cabinet-level executive branch department of the federal government charged with providing life-long healthcare services to eligible military veterans at the 170 VA medical centers and ...
healthcare programs through September 30, 2023.
*$10 billion under the Defense Production Act
The Defense Production Act of 1950 () is a United States federal law enacted on September 8, 1950 in response to the start of the Korean War.Congressional Research ServiceThe Defense Production Act of 1950: History, Authorities, and Considerati ...
for personal protective equipment
Personal protective equipment (PPE) is protective clothing, helmets, goggles, or other garments or equipment designed to protect the wearer's body from injury or infection. The hazards addressed by protective equipment include physical, ...
and other medical gear, and for response to pathogen
In biology, a pathogen ( el, πάθος, "suffering", "passion" and , "producer of") in the oldest and broadest sense, is any organism or agent that can produce disease. A pathogen may also be referred to as an infectious agent, or simply a ger ...
s that could become future public health emergencies.
*$7.66 billion for workforce programs for state, local, and territorial public health departments and certain nonprofits, including funds to hire and train "case investigators, contact tracers, social support specialists, community health workers, public health nurses, disease intervention specialists, epidemiologists, program managers, laboratory personnel, informatician
Informatics is the study of computational systems, especially those for data storage and retrieval. According to ACM ''Europe and'' '' Informatics Europe'', informatics is synonymous with computer science and computing as a profession, in which ...
s, communication and policy experts, and any other positions as may be required to prevent, prepare for, and respond to COVID-19."
*$7.6 billion to community health centers
A healthcare center, health center, or community health center is one of a network of clinics staffed by a group of general practitioners and nurses providing healthcare services to people in a certain area. Typical services covered are family pr ...
and Federally Qualified Health Center
A Federally Qualified Health Center (FQHC) is a reimbursement designation from the Bureau of Primary Health Care and the Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services. This designation is s ...
s to combat COVID-19, including promotion, distribution, and administration of the COVID-19 vaccine; COVID-19 tracing and mitigation; COVID-19-related equipment; and COVID-19 outreach and education.
*$7.5 billion to the Centers for Disease Control and Prevention
The Centers for Disease Control and Prevention (CDC) is the national public health agency of the United States. It is a United States federal agency, under the Department of Health and Human Services, and is headquartered in Atlanta, Georg ...
(CDC) for COVID-19 vaccine
A COVID19 vaccine is a vaccine intended to provide acquired immunity against severe acute respiratory syndrome coronavirus 2 (SARS‑CoV‑2), the virus that causes coronavirus disease 2019 (COVID19).
Prior to the COVID19 pandemic, an est ...
distribution, administration, and tracking, including preparation of community vaccination centers and mobile vaccine units and acceleration of vaccine deployment. The bill funds 100,000 public health workers for vaccination outreach and contact tracing.
*$6.05 billion for "expenses related to research, development, manufacturing, production and purchase of vaccines".
*$5.4 billion to the Indian Health Services
The Indian Health Service (IHS) is an operating division (OPDIV) within the U.S. Department of Health and Human Services (HHS). IHS is responsible for providing direct medical and public health services to members of federally-recognized Native ...
.
*$3.5 billion in block grant
A block grant is a grant-in-aid of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms ...
s to states, evenly split between the Community Mental Health Services Block Grant program and the Substance Abuse Prevention Treatment Block Grant program.
*$1.75 billion for genomic sequencing, analytics, and disease surveillance
Disease surveillance is an epidemiological practice by which the spread of disease is monitored in order to establish patterns of progression. The main role of disease surveillance is to predict, observe, and minimize the harm caused by outbreak ...
.
*$1 billion to the U.S. Department of Health and Human Services
The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is " ...
for vaccine confidence programs to increase vaccination rates.
*Approximately $750 million on global health security to fight COVID-19 and other emerging infectious diseases.
*$500 million to the Food and Drug Administration
The United States Food and Drug Administration (FDA or US FDA) is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food ...
to evaluate vaccine performance and facilitate vaccine oversight and manufacturing.
*$330 million for teaching health centers with graduate medical education
Graduate Medical Education (GME) refers to any type of formal medical education, usually hospital-sponsored or hospital-based training, pursued after receipt of the M.D. or D.O. degree in the United States This education includes internship
A ...
programs.
*$500 million to the CDC for public health surveillance Public health surveillance (also epidemiological surveillance, clinical surveillance or syndromic surveillance) is, according to the World Health Organization (WHO), "the continuous, systematic collection, analysis and interpretation of health-relat ...
and analytics, including a modernization of the U.S. disease warning system to predict COVID-19 "hot spots" and emerging public health threats.
*$200 million for nursing loan repayment programs.
*$100 million for the Medical Reserve Corps
The Medical Reserve Corps (MRC) is a network in the U.S. of community-based units initiated and established by local organizations aimed to meet the public health needs of their communities. It is sponsored by the Office of the Assistant Secreta ...
.
*$100 million for a Behavioral Health Workforce Education and Training Program.
*$80 million for mental
Mental may refer to:
* of or relating to the mind
Films
* ''Mental'' (2012 film), an Australian comedy-drama
* ''Mental'' (2016 film), a Bangladeshi romantic-action movie
* ''Mental'', a 2008 documentary by Kazuhiro Soda
* ''Mental'', a 2014 O ...
and behavioral health
Mental health encompasses emotional, psychological, and social well-being, influencing cognition, perception, and behavior. It likewise determines how an individual handles stress, interpersonal relationships, and decision-making. Mental health ...
training.
*$86 billion for a rescue package/bailout for approximately 185 multiemployer pension fund
A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.
Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...
s (usually pension plans set up by a union and industry) that are close to insolvency. The pension funds collectively cover 10.7 million workers.
Transportation
*$30.5 billion in grants to public transit and commuter rail
Commuter rail, or suburban rail, is a passenger rail transport service that primarily operates within a metropolitan area, connecting commuters to a central city from adjacent suburbs or commuter towns. Generally commuter rail systems are co ...
agencies across the country to mitigate major decreases in ridership and fare revenue due to the COVID-19 pandemic. This includes $6 billion to the MTA in the New York area (the U.S.'s largest public transit agency) and $1.4 billion to WMATA, VRE and MARC in the D.C. area.[
*$15 billion for airlines and airline contractors for a third extension of Payroll Support Program (which would otherwise have expired at the end of March 2021). The extension will prevent the furlough of more than 27,000 aviation employees.][Lori Aratani]
Airlines, public transit agencies say $1.9 trillion relief plan would prevent deep cuts, job losses
''Washington Post'' (March 8, 2021).
*$8 billion for U.S. airports.[
*$2 billion for ]Amtrak
The National Railroad Passenger Corporation, doing business as Amtrak () , is the national passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous U.S. States and nine cities in Canada ...
.[
*$10.4 billion for agriculture and ]USDA
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
, of which:[What's in the American Rescue Plan Act of 2021 for Agriculture?]
''Market Intel'', Farm Bureau.[Relief bill is most significant legislation for Black farmers since Civil Rights Act, experts say]
''Washington Post'' (March 8, 2021).
**$4 billion (39% of total agricultural expenditures) and $1 billion (9.7% of total agricultural expenditures) goes to debt forgiveness and outreach/support, respectively, for socially disadvantaged farmers.[ Experts identified the relief bill as the most important legislation for African-American farmers since the ]Civil Rights Act of 1964
The Civil Rights Act of 1964 () is a landmark civil rights and labor law in the United States that outlaws discrimination based on race, color, religion, sex, and national origin. It prohibits unequal application of voter registration req ...
, benefiting many who were not fully compensated by the '' Pigford'' settlements.[
** $3.6 billion (35% of total agricultural expenditures) for COVID-19 response (e.g., for agricultural and supply chain workers) and for the purchase and distribution of food.][
**$800 million (7.7% of total agricultural expenditures) for ]Food for Peace
In different administrative and organizational forms, the Food for Peace program of the United States has provided food assistance around the world for more than 60 years. Approximately 3 billion people in 150 countries have benefited directly fro ...
.[
**$500 million (4.8% of total agricultural expenditures) for USDA-administered Emergency Rural Development Grants for Rural Healthcare.][
]
Cybersecurity
*$1.85 billion for cybersecurity
Computer security, cybersecurity (cyber security), or information technology security (IT security) is the protection of computer systems and networks from attack by malicious actors that may result in unauthorized information disclosure, th ...
funding as a response to the SolarWinds hack.
**$1 billion will go to the General Services Administration's Technology Modernization Fund which will help the federal government launch new cyber and information technology programs.[
**$650 million will go to the ]Cybersecurity and Infrastructure Security Agency
The Cybersecurity and Infrastructure Security Agency (CISA) is an agency of the United States Department of Homeland Security (DHS) that is responsible for strengthening cybersecurity and infrastructure protection across all levels of government ...
to improve its risk mitigation services.[
**$200 million will go to the ]U.S. Digital Service
The United States Digital Service is a technology unit housed within the Executive Office of the President of the United States. It provides consultation services to federal agencies on information technology. It seeks to improve and simplify di ...
.[
]
Healthcare
* Subsidizes 100% of premiums for COBRA recipients from April 1 to September 30, 2021. Due to these subsidies, at least 2.2 million additional people will enroll in COBRA in 2021.
*Changes to ACA ACA may refer to:
Arts and entertainment
* ''A Current Affair'' (Australian TV series), an Australian television program
* Actors Centre Australia, a private dramatic arts school
* American Choreography Awards
* American Composers Alliance
* Am ...
**Removing the welfare cliff by removing the income limit on premium subsidies. Instead, anyone can be eligible for premium subsidies if the cost of their premiums is more than 8.5% of their income. These subsidies will not affect rich households.[
**Increasing subsidies that are already available to low-income households. An estimated 2.5 million uninsured people will get covered due to these changes. Additionally, about 3.4 million of the lowest income enrollees will see their premiums fall by 100%.]
**Create a special rule whereby anyone who qualifies for unemployment automatically qualifies for the maximum amount of subsidies.[
**Protect any ACA subsidy recipient from clawbacks due to income fluctuations in 2020.][
*Changes to ]Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and ...
and CHIP
*Requires coverage of COVID-19 vaccines, vaccine counseling and COVID-19 treatment. Expands state options for COVID-19 testing for the uninsured.[
*Allows states to give 12 months of post-partum coverage for new mothers.][
*Introduce new incentives for states to expand Medicaid coverage.][
]
Impact
The bill's economic-relief provisions are overwhelmingly geared toward low-income and middle-class Americans, who will benefit from (among other provisions) the direct payments, the bill's expansion of low-income tax credits, child-care subsidies, expanded health-insurance access, extension of expanded unemployment benefits, food stamps, and rental assistance programs.[Jim Tankersley]
To Juice the Economy, Biden Bets on the Poor
''New York Times'' (March 6, 2021). The bill contains little direct aid to high income-earners, who largely retained their jobs during the COVID-19 economic shock and bolstered their savings.[ Biden's administration crafted the plan in part because economic aid to lower-income and middle-income Americans (who are more likely to immediately spend funds on bills, groceries, and housing costs to avoid eviction or foreclosure) is more likely to stimulate the U.S. economy than aid to higher-earners (who are more likely to save the money).][ The Institute on Taxation and Economic Policy found that the stimulus bill's direct payments, ]child tax credit
A child tax credit (CTC) is a tax credit for parents with dependent children given by various countries. The credit is often linked to the number of dependent children a taxpayer has and sometimes the taxpayer's income level. For example, in t ...
expansion, and earned income tax credit
The United States federal earned income tax credit or earned income credit (EITC or EIC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends ...
expansion would boost the income of the poorest one-fifth of Americans by nearly $3,590. The Congressional Budget Office
The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.
Inspired by California's Legislative Analyst's Office that manag ...
estimated that the bill's increase in health insurance subsidies would lead to 1.3 million previously uninsured Americans gaining health insurance coverage.
An analysis by Columbia University
Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manha ...
's Center on Poverty and Social Policy estimated that the original stimulus proposal would reduce overall U.S. poverty by a third, reduce child poverty by 57.8% and reduce the adult poverty rate by more than 25%. However these estimates relied in part upon a minimum wage increase that was not included in the final bill, meaning effects on poverty may be notably different from those anticipated in that study.[
The ]Tax Policy Center
The Urban-Brookings Tax Policy Center, typically shortened to the Tax Policy Center (TPC), is a nonpartisan think tank based in Washington D.C. A joint venture of the Urban Institute and the Brookings Institution, it aims to provide independen ...
wrote that, for households making under $25,000, the bill would cut their taxes by an average of $2,800, which would boost their after-tax income by 20%. Additionally, low-income households with children would see an average tax cut of about $7,700, and this would boost their after-tax income by 35%. Middle-income households will also see an average tax cut of about $3,350, and this would increase their after-tax income by 5.5%. Overall, about 70% of the bill's tax benefits will go to households making under $91,000.
Inflationary impact
Commentators in the press have said that the American Rescue Plan Act of 2021 has likely contributed to the inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
—felt in the form of higher prices—experienced across the United States in 2022.
A March 2022 study released by the Federal Reserve Bank of San Francisco
The Federal Reserve Bank of San Francisco (informally referred to as the San Francisco Fed) is the federal bank for the twelfth district in the United States. The twelfth district is made up of nine western states— Alaska, Arizona, Califor ...
estimated that fiscal support measures designed to counteract the severity of the pandemic's economic effect (i.e. the American Rescue Plan) may have raised inflation about 3 percentage points by the end of 2021 (inflation was about 7% in 2021, so this would imply an inflation rate of 4% without the Rescue Plan) noting that at the same time these measures may have prevented "outright deflation and slower economic growth, the consequences of which would have been harder to manage".
Nobel Prize in economics-winner Paul Krugman
Paul Robin Krugman ( ; born February 28, 1953) is an American economist, who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for ''The New York Times''. In 2008, Krugman was t ...
admitted in an op-ed for the New York Times in July 2022 that he was among many economists that foresaw no inflation risk due to the American Rescue Plan but that resulted being wrong about it.
Response
Congress
The relief package received universal support from Democrats and universal opposition from Republicans, passing on a party-line vote
A party-line vote in a deliberative assembly (such as a constituent assembly, parliament, or legislature) is a vote in which a substantial majority of members of a political party vote the same way (usually in opposition to the other political ...
. Some House Democratic progressives expressed disappointment with some changes to the relief package made in the Senate (such as the removal of the $15 minimum wage) to win over moderate Democratic support, but continued to support the package.
Republicans in Congress opposed the bill, claiming it to be unaffordable,[ and claiming the bill only benefitted Democratic-led states. Though the bill provided some funding for Republican-leaning states, 61% of aid would go to states that voted for Biden in November 2020.]
Clinton Administration Treasury Secretary and Harvard University President Lawrence Summers
Lawrence Henry Summers (born November 30, 1954) is an American economist who served as the 71st United States secretary of the treasury from 1999 to 2001 and as director of the National Economic Council from 2009 to 2010. He also served as pr ...
called the bill “the least responsible macroeconomic policy we’ve had in the last 40 years,” arguing the law would lead to substantial inflation (and possibly a recession, if the Federal Reserve responded by raising interest rates). Later data would show a large surge in inflation. Although the importance of the law in causing this has been disputed, price increases rose to the highest levels in 40 years, as Summers had argued.
Some Democrats argued the bill’s provisions were similar to policies Republicans had supported in the Trump administration
Donald Trump's tenure as the List of presidents of the United States, 45th president of the United States began with Inauguration of Donald Trump, his inauguration on January 20, 2017, and ended on January 20, 2021. Trump, a Republican Party ...
; Republicans responded by arguing that such measures were no longer necessary, as the economy was no longer in a recession and COVID-19 vaccines were now being administered.[
]
President Biden
President Joe Biden advocated for fast-tracking the stimulus package with optimally bipartisan support. In early February 2021, Biden criticized Republicans for not seeking a bipartisan compromise on a final aid bill, and said the Republicans were wilfully obstructing his proposal. At the time, Biden signaled openness to passing the legislation without any support from congressional Republicans. Biden stated that he could not, "in good conscience," make concessions to Republicans who he said propose to either "do nothing or not enough" as Republicans complain Biden is forsaking his promises on bipartisanship and unity. Furthermore, Biden noted that " l of a sudden, many of them have rediscovered fiscal restraint and the concern for the deficits" whereas in the Trump administration
Donald Trump's tenure as the List of presidents of the United States, 45th president of the United States began with Inauguration of Donald Trump, his inauguration on January 20, 2017, and ended on January 20, 2021. Trump, a Republican Party ...
Republicans had passed trillions in dollars in tax cuts
A tax cut represents a decrease in the amount of money taken from taxpayers to go towards government revenue. Tax cuts decrease the revenue of the government and increase the disposable income of taxpayers. Tax cuts usually refer to reductions i ...
and mostly corporate aid for the coronavirus crisis, adding trillions of dollars to the national debt
A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit o ...
without much reservation.
Others
Republican mayors such as Jerry Dyer of Fresno
Fresno () is a major city in the San Joaquin Valley of California, United States. It is the county seat of Fresno County and the largest city in the greater Central Valley region. It covers about and had a population of 542,107 in 2020, maki ...
, Francis X. Suarez
Francis Xavier Suarez (; born October 6, 1977) is an American lawyer and politician serving as the 43rd mayor of Miami. He was elected on November 7, 2017, with 86 percent of the vote and was re-elected on November 2, 2021, with 78 percent of ...
of Miami
Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at th ...
, David Holt of Oklahoma City
Oklahoma City (), officially the City of Oklahoma City, and often shortened to OKC, is the capital and largest city of the U.S. state of Oklahoma. The county seat of Oklahoma County, it ranks 20th among United States cities in population, an ...
, and Betsy Price of Fort Worth, Texas
Fort Worth is the List of cities in Texas by population, fifth-largest city in the U.S. state of Texas and the List of United States cities by population, 13th-largest city in the United States. It is the county seat of Tarrant County, Texas, T ...
expressed their support for the plan. Dyer told the ''Washington Post'' that "It's not a Republican issue or a Democrat issue. It's a public health issue. It's an economic issue. And it's a public safety issue."
Over 150 CEOs of major companies expressed support for the Biden stimulus plan in a letter and urged Congress to pass it.
A broad range of advocacy and interest groups praised the bill, including local government groups (National Association of Counties
The National Association of Counties (NACo) is an organization that represents county governments in the United States.U.S. Conference of Mayors
The United States Conference of Mayors (USCM) is the official non-partisan organization of cities with populations of 30,000 or more. The cities are each represented by their mayors or other chief elected officials. The organization was founded ...
); business associations ( National Farmers Union, Airlines for America
Airlines for America (A4A), formerly known as Air Transport Association of America (ATA), is an American trade association and lobbying group based in Washington, D.C. that represents major North American airlines.
Profile
Mission
A4A ...
, National Association of Realtors
The National Association of Realtors (NAR) is an American trade association for those who work in the real estate industry. It has over 1.4 million members, making it one of the biggest trade associations in the USA including NAR's institutes, so ...
, National Restaurant Association
The National Restaurant Association is a restaurant industry business association in the United States, representing more than 380,000 restaurant locations. It also operates the National Restaurant Association Educational Foundation. The associ ...
, Small Business Majority); education organizations (the American Council on Education
The American Council on Education (ACE) is a nonprofit 501(c)(3) U.S. higher education association established in 1918. ACE's members are the leaders of approximately 1,700 accredited, degree-granting colleges and universities and higher educatio ...
, American Federation of Teachers
The American Federation of Teachers (AFT) is the second largest teacher's labor union in America (the largest being the National Education Association). The union was founded in Chicago. John Dewey and Margaret Haley were founders.
About 60 p ...
, National Education Association
The National Education Association (NEA) is the largest labor union in the United States. It represents public school teachers and other support personnel, faculty and staffers at colleges and universities, retired educators, and college stud ...
, National School Boards Association
The National School Boards Association (NSBA) is a nonprofit educational organization operating as a federation of state associations of school boards across the United States. Founded in 1940, NSBA represents state school boards associations a ...
), organized labor (the AFL–CIO
The American Federation of Labor and Congress of Industrial Organizations (AFL–CIO) is the largest federation of unions in the United States. It is made up of 56 national and international unions, together representing more than 12 million ac ...
and AFSCME
The American Federation of State, County and Municipal Employees (AFSCME) is the largest trade union of public employees in the United States. It represents 1.3 million public sector employees and retirees, including health care workers, correcti ...
); healthcare organizations (American Academy of Pediatrics
The American Academy of Pediatrics (AAP) is an American professional association of pediatricians, headquartered in Itasca, Illinois. It maintains its Department of Federal Affairs office in Washington, D.C.
Background
The Academy was found ...
, Association of State and Territorial Health Officials, National Nurses United), the American Public Transportation Association
The American Public Transportation Association (APTA) is a nonprofit group of approximately 1,500 public and private sector member organizations that promotes and advocates for the interests of the public transportation industry in the United S ...
, and the civil rights group UnidosUS.[Alicia Parlapiano]
What 27 Special Interest Groups Said About the Stimulus Bill
''New York Times'' (March 7, 2021). Feeding America
Feeding America is a United States–based nonprofit organization that is a nationwide network of more than 200 food banks that feed more than 46 million people through food pantries, soup kitchens, shelters, and other community-based agencies. ...
, the American Hotel & Lodging Association, the Main Street Alliance, the U.S. Travel Association, the American Hospital Association, the Association of American Medical Colleges
The Association of American Medical Colleges (AAMC) is a nonprofit organization based in Washington, D.C. that was established in 1876. It represents medical schools, teaching hospitals, and academic and scientific societies, while providing ser ...
, and the National Council of Nonprofits praised the bill, but said that additional relief would be necessary.[ The Business Roundtable, U.S. Chamber of Commerce, and Committee for a Responsible Federal Budget called for a smaller and more targeted package.][
Several observers have noted that the stimulus greatly increases the role of the government in fighting poverty in the United States, to an extent not seen since Lyndon Johnson's ]Great Society
The Great Society was a set of domestic programs in the United States launched by Democratic President Lyndon B. Johnson in 1964–65. The term was first coined during a 1964 commencement address by President Lyndon B. Johnson at the University ...
in the 1960s; accordingly some have seen it as evidence that the United States is moving towards social democracy
Social democracy is a political, social, and economic philosophy within socialism that supports political and economic democracy. As a policy regime, it is described by academics as advocating economic and social interventions to prom ...
and away from the " government is the problem" consensus in place since the 1980s.
Dave Yost, the Republican Ohio Attorney General, sued the Biden administration over the provision of the Act that creates a $350 billion fund to help state and local governments pay first responder
A first responder is a person with specialized training who is among the first to arrive and provide assistance or incident resolution at the scene of an emergency, such as an accident, disaster, medical emergency, structure fire, crime, or ...
s and other COVID-19-related expenses. The Act provides that a state cannot use federal aid money to offset net revenues lost if a state chooses to implement new state tax cuts. Yost's suit claims that this limitation coerces states and infringes on their "sovereign authority to set state tax policy."
Public opinion
The stimulus plan had broad public support.[Lauren Gambino & Martin Pengelly]
Biden hails 'giant step' as Senate passes $1.9tn coronavirus relief bill
''The Guardian'' (March 6, 2021). A February 11 ''Newsweek
''Newsweek'' is an American weekly online news magazine co-owned 50 percent each by Dev Pragad, its president and CEO, and Johnathan Davis, who has no operational role at ''Newsweek''. Founded as a weekly print magazine in 1933, it was widely ...
''/ Harris X poll showed that 60% of Republican voters expressed support for the stimulus plan and a poll from Quinnipiac University
Quinnipiac University () is a private university in Hamden, Connecticut. The university grants undergraduate, graduate, and professional degrees through its College of Arts and Sciences, School of Business, School of Engineering, School of ...
found that 68% of Americans support it. A Morning Consult
Morning Consult is a global decision intelligence company established in 2014. It was named one of the fastest growing technology companies in North America by Deloitte in both 2018 and 2019 and was valued at more than one billion dollars in Jun ...
/''Politico
''Politico'' (stylized in all caps), known originally as ''The Politico'', is an American, German-owned political journalism newspaper company based in Arlington County, Virginia, that covers politics and policy in the United States and intern ...
'' poll showed that 76% of voters, including 60% of Republicans and 89% of Democrats, supported the bill. A Monmouth University poll found that 62% of Americans approve of the stimulus package,[ with 92% of Democrats, 56% of independents, and 33% of Republicans supporting the legislation. CBS News released a poll on March 12, which showed that 75% of Americans approved the stimulus bill, including 77% of independents, 46% of Republicans, and 94% of Democrats. In a poll conducted by Data for Progress and Vox, around 31% of Republican voters believed that their party backs the legislation, with 53% believing that it does not.]
See also
* List of acts of the 117th United States Congress
* List of COVID-19 pandemic legislation
This is a list of legislation passed in response to the COVID-19 pandemic.
China
* wikisource:Decision_of_the_Standing_Committee_of_the_National_People's_Congress_on_a_Complete_Ban_of_Illegal_Wildlife_Trade_and_the_Elimination_of_the_Unhealth ...
* Build Back Better Plan
* American Families Plan
* Inflation Reduction Act
* COVID-19 pandemic in the United States
*
* Families First Coronavirus Response Act
The Families First Coronavirus Response Act is an Act of Congress () meant to respond to the economic impacts of the ongoing COVID-19 pandemic. The act provides funding for free coronavirus testing, 14-day paid leave for American workers affected ...
* Coronavirus Aid, Relief, and Economic Security Act
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a $2.2trillion Stimulus (economics), economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March 27, 20 ...
(CARES Act) – includes $1200 stimulus checks
* Paycheck Protection Program and Health Care Enhancement Act
* Paycheck Protection Program Flexibility Act of 2020
* A bill to extend the authority for commitments for the paycheck protection program
* Consolidated Appropriations Act, 2021 – includes $600 stimulus checks
References
External links
American Rescue Plan Act of 2021
PDFdetails
as amended in the GPObr>Statute Compilations collection
American Rescue Plan Act of 2021
PDF
as enacted in the US Statutes at Large
H.R.1319 - American Rescue Plan Act of 2021
bill information on Congress.gov
Congress.gov is the online database of United States Congress legislative information. Congress.gov is a joint project of the Library of Congress, the House, the Senate and the Government Publishing Office.
Congress.gov was in beta in 2012, and b ...
*
*
*
*
{{COVID-19 pandemic in the United States
Acts of the 117th United States Congress
Articles containing video clips
Economic stimulus programs
Law associated with the COVID-19 pandemic in the United States
Presidency of Joe Biden
United States federal health legislation
Economic responses to the COVID-19 pandemic
United States federal reconciliation legislation