Image Credit : President Biden signs the American Rescue Plan on Thursday, March 11, 2021. (Mandel Ngan | AFP via Getty Images)
On Thursday, March 11, 2021, President Biden signed the American Rescue Plan, a $1.9 trillion Covid relief bill. Here are the highlights of the bill:
- $1,400 advance payments to most Americans and their dependents under the recovery rebate payment. The full amount goes to individuals earning less than $75,000 of adjusted gross income, heads of households (like single parents) earning less than $112,500 and married couples earning less than $150,000. Families get an additional $1,400 per child. A married couple with two children, for example, could receive up to $5,600.
- $300 per week jobless aid supplement and programs making millions more people eligible for unemployment insurance until Sept. 6. The plan also makes an individual’s first $10,200 in jobless benefits tax-free.
- Expands the Child Tax Credit for one year, increasing it to $3,600 for children under the age of 6 and to $3,000 for children between the ages of 6 and 17.
- Increases the Child and Dependent Care Tax Credit for 2021 and makes it fully refundable.
- Earned Income Tax Credit is enhanced with several changes and special rules for individuals with no children.
- Expands and extends the Employee Retention Tax Credit, designed to allow companies to keep workers on payroll, through the end of 2021.
- Extends Sick and Family Leave Credits to September 30, 2021. Expands the allowable reasons for leave and resets the limits starting April 1, 2021.
- Offers nearly $30 billion in aid to restaurants.
- Puts $20 billion into COVID-19 vaccine manufacturing and distribution, along with roughly $50 billion into testing and contact tracing.
- Adds $25 billion in rental and utility assistance and about $10 billion for mortgage aid.
- Offers $350 billion in relief to state, local and tribal governments.
- Directs more than $120 billion to K-12 schools.
- Increases the Supplemental Nutrition Assistance Program benefit by 15% through September.
- Includes an expansion of subsidies and other provisions to help Americans afford health insurance.