What Is The American Rescue Plan
The American Rescue Plan Act of 2021 is 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. The nearly $2 trillion price tag makes this economic rescue legislation one of the most expensive in U.S. history. It one part of President Biden’s Build Back Better plan, which also includes the American Jobs Plan and the American Families Plan.
The package includes direct stimulus payments of $1,400, extending unemployment compensation, continuing eviction and foreclosure moratoriums, and increasing the Child Tax Credit while making it fully refundable. It provides funds for state and local governments to help compensate for lost tax revenues, money for schools from kindergarten through eighth grade to safely reopen amid the pandemic, and subsidizes COVID-19 testing and vaccination programs.
Are Evictions Permitted During The Pandemic
The federal eviction moratorium issued by the Centers for Disease Control and Prevention to prohibit evictions based on nonpayment of rent is in effect through March 31, 2021. Evictions can still proceed for causes other than nonpayment of rent. To be protected, qualified renters facing eviction must provide a signed declaration to their landlords. The CDC declaration can be found here:
How Is The Dependent Care Tax Credit Changed
The American Rescue Plan expands the child and dependent care credit for 2021 in several ways. First, it raises the credit percentage from 30 percent of child care expenses to 50 percent of such expenses. Second, it increases allowable child care expenses from $3,000 for one child to $8,000, and from $6,000 for 2 or more children to $16,000. These two changes result in a maximum credit of $4,000 for one child and $8,000 for two or more children . Finally, the Rescue Plan makes the credit refundable, allowing families with little tax liability to benefit from the credit.
The full credit is available to families with income under $125,000. At $125,000 the credit percentage of 50 percent begins to phase down 1 percentage point for every $2,000 of income until it plateaus at 20 percent for incomes above $185,000. This 20-percent credit rate begins phasing out for taxpayers who earn more than $400,000. Those earning more than $500,000 are not eligible for the credit.
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Businesses Will Be Protected From Coronavirus Related Lawsuits
This is one of the points that the House Republicans seem to be very passionate about. It was introduced under the proposed HEALS Act. The bill intends to limit coronavirus related lawsuits against schools, healthcare workers, and employers. Unless theres a case of gross negligence, these agents will be protected from lawsuits.
No Cash For The Oil Stash
What they got: The bill does not include the $3 billion Trump sought to fulfill his promise this month of filling the country’s oil stockpile “right up to the top” as a way to aid U.S. drillers amid a price decline. Democrats also failed to clinch language extending tax breaks for renewable energy industries.
Why it matters: This fight isnt over. Congress has made plenty of deals in the past that combine something for clean energy companies with something for the oil industry most recently in 2015 when lawmakers agreed to end a ban on oil exports and extend several tax breaks for renewable energy.
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Minimal Aid For Insurers
What they got: Insurers wanted an emergency fund to offset big losses stemming from the pandemic, as well as premium subsidies to help fund temporary “COBRA” coverage for laid-off workers. They got none of that, although the legislation aims to protect them from price-gouging on coronavirus tests.
Why it matters: Officials in the health care industry don’t really know how much money plans will lose during the crisis. While insurers are probably saving money from mass cancelations of expensive elective procedures, they are still bracing for unprecedented numbers of hospitalizations. Insurers also already got a $16 billion gift when Congress repealed Obamacares health insurance fee in December.
Here’s What’s In Democrats’ $19 Trillion Stimulus Plan
by Christy Bieber | Updated July 25, 2021 – First published on Feb. 22, 2021
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Stimulus checks are just the start of what’s in the Democrats’ bill.
On Friday, House Democrats released their $1.9 trillion stimulus plan. The proposal totals 591 pages and includes measures approved by nine House committees.
It’s based on the framework laid out by President Joe Biden, and it includes myriad forms of relief for Americans. Here’s exactly what’s in the massive proposal.
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The Stimulus Bill Subsidizes Defense Contractors While Denying Direct Payments To Workers
The stimulus bill currently under consideration in Congress does not include direct payments to the millions of workers struggling to survive. Thats an outrage and, as a further slap in the face, the legislation subsidizes defense contractors.
The Pentagon, headquarters of the United States Department of Defense, taken from an airplane in January 2008.David B. Gleason / Wikimedia
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Earlier this year, Republican senators slammed the idea of spending money to pay Americans not to work during the pandemic. Only a few months later, a group of GOP senators has signed onto stimulus legislation that would authorize the government to pay idle defense contractors to not work, even as those contractors rack up big profits during the pandemic.
Meanwhile, the same bill excludes bipartisan provisions authorizing direct payments to millions of Americans struggling to survive.
The provision was added to the last page of the 525-page bill after defense contractors sent a letter to congressional lawmakers lobbying for the language. The same bill does not authorize direct payments to millions of Americans nor does it reimburse small businesses for providing paid leave benefits to their workers.
You can subscribe to David Sirotas investigative journalism project, the Daily Poster, here.
Fact Check: ‘new Stimulus Bill’ Does Not Include Funding
The package will include the eagerly awaited second stimulus check only this time, it’s just for $600 for individuals who qualify, rather than the prior bill’s $1,200 there will also be an. Stimulus Checks. Biden’s proposals are expected to include funds to bring the latest round of $600 stimulus checks up to $2,000 after Congress failed to pass a large raft of relief over the. Update: December 29, 2020 The Consolidated Appropriations Act of 2021 has been signed into law by the President. The following summarizes the Paycheck Protection Program #2 provisions of the new stimulus law. The Small Business Administration has 10 days to issue guidance on the application process. Please be sure to check back for updates The December package ultimately dropped an initial call to include $160 billion. Biden’s plan would also give $20 billion to the hardest-hit public transit agencies to help avert layoffs and the. What Does the Covid-19 Stimulus Bill Mean for Loan Forgiveness, Financial Aid and College Students? The newly passed $1.9 trillion package contains $40 billion for higher educatio
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What Assistance Is There For Nonprofits
Nonprofits are eligible for the same EIDL loans and grants and PPP loans as small businesses. Prior to March 2021, many small nonprofits were excluded from PPP. However, the American Rescue Plan extended PPP eligibility to nonprofits listed under Section 501 of the Internal Revenue Code, except for 501s which remain ineligible for PPP as well as those made ineligible in SBA regulations. The plan also makes local offices of larger nonprofit organizations eligible for PPP. 501s, 501s, and the newly eligible nonprofits with multiple physical locations are eligible for PPP, provided that each location does not exceed 300 employees. Those newly qualified employers should act quickly to apply before the program closes, possibly as soon as the end of March if Congress does not extend it further.
Applying nonprofits will be asked to provide a SSN for the head of the organization or the person applying for the loan. This is used just to keep track to make sure the authorized person is applying, and the SBA says it does not get shared with credit bureaus or affect the credit of the person applying.
The Bill Would Give Out $1400 Stimulus Checks
Individuals making under $75,000 and married couples making under $150,000 would receive direct payments of $1,400 per person. The bill would also provide $1,400 per dependent.
The payments would gradually decrease above those income levels and disappear entirely above an income cap: $80,000 for individuals and $160,000 for married couples.
Those caps were lowered from the thresholds in the Houses version of the stimulus plan, which set the cutoffs at $100,000 for individuals and $200,000 for married couples.
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Biden Facing Pressure To Include A Fourth Stimulus Check
- A new $900 billion stimulus package has been proposed, and many are wondering if it will include $1,200 stimulus checks. According to a report from CNBC, the new bill will not come with a provision for direct relief payments to Americans.The outlet notes that the main goal of the bipartisan-supported bill is to address and fund expiring programs such as unemployment insurance extension
- The stimulus package includes, among other initiatives, second stimulus checks, unemployment benefits, school funding and more Payment Protection Program funding. The Heals Act also includes some student loan relief, but not what you may think. Let’s dive in
- President-elect Joe Biden on Thursday unveiled the details of a $1.9 trillion coronavirus rescue package. The proposal, titled the American Rescue Plan, includes familiar stimulus measures with.
- The Counterpoint. Biden’s proposed stimulus package does in fact allow small business owners with past felony convictions to access PPP loans, something that was not allowed in the 2020 stimulus.
- The measure is the second-largest federal stimulus package after the $2 trillion CARES Act that Congress approved in March.. Lawmakers passed the bill last Monday, just in time to get something done before the end of December, when several aid programs in the CARES Act were set to expire, including key pandemic jobless assistance measures and eviction protections
Changes To Tax Credits
The EITC is a tax credit that provides financial assistance to workers earning around $57,000 or less. The credit is partially refundable , which means it can reduce your taxes or increase your refund.
You may qualify for the EITC with or without children but currently, the credit is fairly small for people without kids. For 2021, you can qualify for a maximum credit of $6,728 if you have up to three children. However, for childless taxpayers, the total amount you can claim is $543.
Biden proposes to temporarily increase the EITC for childless workers for one year, allowing those who qualify to claim a credit of up to $1,500. The EITC will remain unchanged for those with kids.
The bill also contains big changes to the child tax credit although theyre temporary and will only last for one year. Under the current law, a person might qualify to claim a credit of up to $2,000 per child under 17. Bidens plan greatly boosts the credit, increasing the CTC up to $3,600 for children ages under the age of 6. Children ages six to 17 might qualify for a credit of up to $3,000. Another provision in the package would allow the credit to be fully refundable to those who qualify.
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Relief For Farmers Ranchers: $24 Billion
What they got:Nearly $24 billion, including $14 billion for an obscure Depression-era financial institution that USDA has wide discretion to use to stabilize the farm economy. Another $9.5 billion would be set aside for emergency aid for the agriculture sector, including cattle ranchers and fresh fruit and vegetable growers.
Why it matters: More aid might be on the way. Republican senators from major cattle producing states, like Sen. John Hoeven , initially sought to replenish the Depression-era program with $20 billion, as well as increase USDA’s borrowing authority from the institution to $50 billion.
After A Marathon Voting Session The Senate Passed Bidens Relief Package Here Are Some Key Measures
Democrats forged ahead to move President Bidens $1.9 trillion covid package through the Senate on Saturday, adopting the bill without any Republican support after a marathon debate that lasted over 24 hours.
Democrats are pledging to get the bill on Bidens desk before mid-March, when unemployment benefits expire for millions of Americans.
Heres a rundown of the Senate bill:
New Stimulus Package Will Provide Fiscal Aid To Usps
The November presidential elections will allow people to vote via mail. Keeping in mind the tough logistical issues, both the Republican Party and the Democratic Party have decided to introduce advanced programs to financially aid the US Postal Service. Previously, the House approved a bill regarding the same. However, it did not pass the Senate. Moreover, the skinny stimulus bill proposed by the Republicans also included this provision. However, this was struck down in the chamber floors.
How Long Will It Take For This Check To Be Delivered
Rebates sent via direct deposit will take a few weeks. Rebates sent via checks may take a few months. For those eligible, Treasury will send notice by mail to the individuals last known address as soon as practicable. The notice will indicate the method by which the payment was made, the amount of the payment, and a phone number for a point of contact at the IRS to report any failure to receive your payment.
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Whats In The $19 Trillion Us Covid
Here are highlights of what is in the bill that is expected to be signed into law by President Biden later this week.
The US Congress is preparing to send President Joe Biden an enormous $1.9 trillion economic stimulus and COVID-19 relief package that policymakers hope will set the stage for a recovery from the devastating coronavirus pandemic in the United States.
The bill provides direct payments to individual US citizens, tax credits for families with children, and hundreds of billions in bailouts for state and local governments, pension funds, small businesses, public schools, and healthcare providers.
US Treasury Secretary Janet Yellen said on Monday the bill should help the US return to full employment next year.
We have a K-shaped recovery going on, in which high-income people are doing much better than those at the bottom of the economic ladder low-wage workers and minorities, Yellen said in an interview on the MSNBC news outlet.
House of Representatives Speaker Nancy Pelosi told reporters at the Capitol on Monday the House would likely vote on the bill on Wednesday.
Here are highlights of what is in the COVID-19 relief bill passed by the Senate on March 6 and now awaiting final passage by the US House of Representatives.
Notable Tax Deductions And Policy Changes
The latest stimulus bill extends many CARES Act provisions from 2020 into 2021, as well as adding new provisions for the new year.
Above-the-line charitable donations: The CARES Act allowed all filers to deduct $300 in charitable contributions in 2020. In 2021, individuals can deduct $300 and married couples can deduct up to $600.
Medical Expense Itemized Deduction: The CARES Act raised the AGI hurdle for medical expenses, and Decembers legislation makes that permanent. You can deduct medical expenses that exceed 7.5% of your AGI.
Dependent and Healthcare FSAs: If employers adopt this provision, employees can carry over any unused FSA balances from 2020 into 2021 and again from 2021 into 2022. The bill also allows employees to modify FSA amounts for 2021, even outside the open enrollment period.
Meals and Entertainment Deduction: Business owners can deduct 100% of the money they spend on food and beverages at restaurants in 2021 and 2022.
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Comparison To Cares Act And Consolidated Appropriations Act
The American Rescue Plan Act is the latest in a series of three major pieces of COVID-19 relief legislation. The CARES Act was first, followed by the Consolidated Appropriations Act , and most recently, the American Rescue Plan Act . The table below compares base funding in several key areas for each law.
Biden Praises Passage Of Covid
From CNN’s Nikki Carvajal and Maegan Vazquez
President Biden praised the passage of the American Rescue Plan moments after it passed the House on Wednesday and vowed to sign it on Friday.
This legislation is about giving the backbone of this nation the essential workers, the working people who built this country, the people who keep this country going a fighting chance, Biden said in a statement.
On Friday, I look forward to signing the American Rescue Plan into law at the White House a peoples law at the peoples house,” Biden said.
The President thanked “all the members who voted for it, especially Speaker Pelosi, the finest and most capable speaker in the history of our nation.”
Physical stimulus checks sent to American households last year included a note on the bottom left with then-President Trump’s name. Individuals receiving electronic stimulus payments also received a letter signed by the President.
Psaki said during Tuesday’s White House press briefing that Biden didn’t think the inclusion of his signature on the payments “was a priority or a necessary step. His focus was on getting them out as quickly as possible.”