$1.9 Trillion Stimulus Breakdown

What The $300 A Month Child Benefit Could Mean For A Family On The Edge

Child tax credit

The legislation will temporarily expand the child tax credit, increasing the amount to $3,000 for children ages 6 to 17 and $3,600 for children under age 6.

The amount is gradually reduced for couples earning over $150,000 and individuals earning over $75,000 per year. Families eligible for the full credit will get payments of up to $300 per child per month from July through the end of the year.

Congressional Democrats and the White House may want to figure out how to make the credit permanent.

Paycheck Protection Program

The bill includes $7.25 billion in new money for the small-business loan program known as PPP and will allow more nonprofits to apply, including groups that engage in advocacy and some limited lobbying. It also allows larger nonprofits to be eligible.

Education

There are over $128 billion in grants to state educational agencies, with 90% allocated to local educational agencies, plus$39 billion in grants to higher education institutions.Nearly $15 billion in funds are directed to the Child Care & Development Block Grant program to help support child care facilities, particularly in high-need areas.

The Senate version signed by Biden added a provision to make any student loan forgiveness passed between Dec. 31, 2020, and Jan. 1, 2026, tax-free rather than having the forgiven debt be treated as taxable income.

Whats In The $19 Trillion Covid Relief Bill Biden Just Signed

President Biden has officially signed the $1.9 trillion COVID relief package passed by Congress, clearing the way for stimulus checks to go out as soon as this weekend.

Why it matters: While Democrats were unable to include some progressive priorities in the bill, like an increase in the minimum wage, the final product is being touted as one of the most consequential anti-poverty bills of the modern era.

The bill includes:

Where Things Stand On Stimulus Checks Jobless Aid Child Tax Credits Healthcare Coverage

President Biden and his administration say the economy needs relief to bring down the unemployment rate.

Democrats in Congress are racing to meet a self-imposed mid-March deadline for President Bidens coronavirus relief package before enhanced federal jobless benefits expire. The Senate passed the bill on Saturday and now sends it back to the House. Heres an overview of the $1.9 trillion legislation, from stimulus checks to child tax credits, jobless benefits, vaccine distribution, healthcare subsidies, restaurant aid and more.

What is the overall size of the package?

The House and Senate passed a budget resolution in February that allowed them to craft the $1.9 trillion relief package. The size of the package has stayed roughly the same since it was unveiled by Mr. Biden during the transition period, and after he rebuffed a proposal by a group of 10 Republicans who argued for a $618 billion bill.

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How big are the stimulus checks?

Children and adult dependents would be eligible for the full $1,400. Those adult dependents, including disabled adults and college students, werent eligible for the first two rounds of checks.

What about unemployment payments?

What is included for vaccines and testing?

How does it expand tax credits for children?

The proposal would also authorize periodic payments, so that the credit becomes a near-universal child allowance like those in some other countries instead of part of a lump-sum tax refund.

Write to Gabriel T. Rubin at

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How Does The Original $19 Trillion American Rescue Plan Act Compare To The $22 Trillion Cares Act

The recent stimulus bill in response to COVID-19 covers an array of initiatives and focuses less on businesses than the 2020 CARES Act. USAFacts digs into the numbers behind the original version of the House bill passed on February 27, 2021, whose estimated outlays added up to $1.9 trillion. While the $1.9 trillion cost estimate may be revised due to subsequent amendments, many major outlays are expected to remain at similar levels.

Child Tax Credit Boost:

The child tax credit will rise to $3,600 per child under age 6 and $3,000 for children up to age 17 for one year to help combat the economic damage of the pandemic.

The current tax credit is up to $2,000 per child. The plan also expands eligibility to families who make no or very little income each year.

The American Rescue Plan puts thousands more into families’ pockets because it makes the benefit fully refundable. Currently, if the credit taxpayers receive exceeds the amount of taxes they owe, they can receive no more than $1,400 as a refund.

Under the new plan, they’re eligible for the full credit either $3,000 or $3,600 per child though it phases out when incomes exceed $150,000 for a household, or $75,000 for individuals.

The non-partisan Joint Congressional Committee on Taxation projects the change could cost more than $110 billion for the year the expanded credit is in effect.

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Sends Hundreds Of Billions In Taxpayer Money To Non

Another glaring flaw plaguing Bidens package is that so much of its expenditure would not go to the needy or those actually impoverished by the COVID-19 crisis and lockdowns, but to affluent or well-off Americans. Consider the president-elects stated desire to send out increased stimulus checks, for example.

We can safely assume that Biden would use the same or similar eligibility requirements as the House Democrats did with their bill to send out $2,000 checks. Under this scenario, taxpayers would be on the hook for billions sent to wealthy families. As economist Peter Jacobsen and Ipreviously explained for FEE:

The Committee for a Responsible Federal Budgets Marc Goldwein examined the House Democrats proposed boosted stimulus checks legislation. He reports that a single adult with a $100,000 salary would get $750 courtesy of the US taxpayereven if their income hasn’t been disrupted at all. A married couple with 3 kids with a household income of $200,000 would get $7,500 in taxpayer money.

These are just two examples. But its true, broadly speaking, that these proposals would spray billions of dollarsfunded by our taxes and debtto well-off people whose employment has not been adversely impacted by COVID-19 lockdowns.

In a similar vein, Bidens package allocates hundreds of billions in taxpayer money to bail out poorly-managed state and local governments.

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Industry support

There’s a variety of provisions in the legislation to offer support to different industries. The Small Business Administration will get $25 billion for a new grant program for “restaurants and other food and drinking establishments.” Grants will be up to $10 million per entity and $5 million per physical location, with a maximum of 20 locations. The legislation sets aside $5 billion of the total money to be targeted to businesses with less than $500,000 in revenue in 2019.The legislation includes another $1.25 billion for the Small Business Administration’s Shuttered Venue Operators Grant program.

To support the transportation sector, the legislation allocates nearly $30 billion for transit costs, including payroll and personal protective equipment $8 billion for airports $3 billion for a temporary payroll support program to help support the aerospace manufacturing industry and $1.5 billion to recall and pay Amtrak employees who were furloughed because of the pandemic and to restore various daily routes. Another $15 billion will also be allocated to support workers in the airline industry.

Rental assistance

There is $25 billion for emergency rental assistance, including $5 billion for emergency housing vouchers for people experiencing homelessness, survivors of domestic violence and victims of human trafficking.

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The Federal Government Spent $66 Trillion In Fiscal Year 2020

Many Americans are struggling to make ends meet as the pandemic continues to impact the economy. Thirty-five percent of households reported having difficulty paying for usual expenses in the most Census Household Pulse Survey. The American Rescue Plan Act contains several provisions to stay accountable to hurting Americans, including $3 million to the Department of Commerces Inspector General for oversight, $40 million to the Pandemic Response Accountability Committee, and $77 million to the Government Accountability Office. Over the coming months, check the indicators on how the nation is fairing at the COVID-19 Impact and Recovery Hub.

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Key Statistics Of Where The Stimulus Bill Will Be Spent

• $403 billion of stimulus checks will be given to eligible Americans
• The continuation of the $300 per week unemployment support and other measures will cost $205 billion
• More than $176 billion will be invested in schools, colleges, and online learning
• COVID-19 vaccination and testing programs will receive nearly $66 billion of federal support
• Restaurants and bars are set to receive $28.6 billion of aid, with Airlines and the aviation industry being handed slightly less at $25.5 billion
• 47% of Americans surveyed said they need urgent support within the next month
• The top 3 areas people need stimulus support for are paying critical debts , mortgage and rent payments , and buying food

Whats In The $19 Trillion Stimulus Package

On Wednesday, President Biden’s $1.9 trillion stimulus package cleared its final hurdle in Congress. Having already passed through the Senate, the House of Representatives approved the plan by 220 votes to 211 with no Republicans voting in favor. It will now head to Biden’s desk where it will be signed into law. Known as the American Rescue Plan, the relief bill is one of the largest federal aid packages since the Great Depression and its approval marks a considerable victory for Biden.

It contains a range of measures such as a further round of direct payments to American taxpayers amounting to more than $400 billion. Checks of $1,400 will be sent to individuals making up to $80,000, single parents earning $120,000 or less and couples with household incomes of no more than $160,000. $246 billion is being allocated to extend unemployment programs with federal unemployment payments of $300 per week now extended until September 06.

$350 billion is being allocated to state and local governments while education will receive nearly $180 billion to support measures such as school reopenings. The Covid-19 response is also going to be boosted by a further $123 billion. Democrats tried to include plans to raise the federal minimum wage from $7.25 an hour to $15 per hour but those proposals became bogged down in the Senate and they failed to make it into the final bill.

*Click below to enlarge

Composition of the American Rescue Plan Act

Statista

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Vp Kamala Harris Casts Her First Tiebreaking Vote In The Senate

Democrats in both the House and the Senate voted to muscle Bidens coronavirus relief bill through Congress using reconciliation, a budgetary tool whereby they can pass the legislation without any GOP votes. In the early hours of Friday, after a marathon voting session in the Senate the fast-track budget measure was passed with Vice President Kamala Harris casting her first tiebreaking vote. Now it will be up to lawmakers in both chambers to hammer out the language of the bill that will keep all the members of the party happy.

In both the House and Senate Republican opposition to the spending measure was unanimous. GOP Senators presented the White House with their own $600 billion proposal that is less than a third of the size of what Democrats approved. Biden said from the White House Id like to be doing it with the support of Republicans. Ive met with Republicans. …but theyre just not willing to go as far as I think we have to go,

Is There Wasteful Spending In The New $19 Trillion Coronavirus Stimulus Bill

WASHINGTON, DC – FEBRUARY 11: Speaker of the House Nancy Pelosi heads back to her office … following her weekly press conference at the US Capitol on February 11, 2021 in Washington, DC.

Over the weekend, the U.S. House posted a first draft version of the American Rescue Plan Act of 2021 a $1.9 trillion emergency aid package to help America recover from the coronavirus pandemic.

Previous legislation has already provided at least $4 trillion in funds for testing, paid family leave, small business relief, direct payments to individuals and families, the Kennedy Center, and a plethora of non-related Covid-19 relief.

Since House Speaker Nancy Pelosis leadership team essentially wrote the bill, our auditors at OpenTheBooks.com found what House Democrats consider coronavirus-recovery essential spending:

• $1.5 million earmarked for the Seaway International Bridge, which connects New York to Canada. Senate Leader Chuck Schumer hails from New York.
• $50 million for family planning going to non-profits, i.e. Planned Parenthood, or public entities, including for services for adolescents
• $852 million for AmeriCorps, AmeriCorps Vista, and the National Senior Service Corps the Corporation for National and Community Service civic volunteer agencies. This includes $9 million for the AmeriCorp inspector general to conduct oversight and audits of the largess. AmeriCorps received a $1.1 billion FY2020 appropriation.

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Biden’s Covid Stimulus Plan: It Costs $19tn But What’s In It

The US is poised to pass its third major spending package of the pandemic – a $1.9tn plan that President Joe Biden has championed as a way to help struggling Americans.

Leaders of his Democratic Party, which has a slim majority in Congress, are planning to pass the so-called American Rescue Plan by mid-March. The Senate approved it on Saturday, with the lower House of Representatives expected to endorse it next week.

Republicans say the plan is unnecessarily large and stuffed with Democratic priorities unrelated to the pandemic.

But Mr Biden and his team maintain the US must “act big” and that the extra cash is being spent on those most affected by the crisis – the poor, minorities and women.

Democrats on Thursday saw their push for a minimum wage hike thrown into question after a Senate arbiter ruled it must be removed from the Covid package.

Here are some of the key elements, with analysis by BBC correspondent Anthony Zurcher who ranks how much each component has support from Republicans .

Additional Programs And Extensions

In addition to all funding above, the stimulus extended the Coronavirus Relief Fund created by the CARES Act and the Employee Retention Tax Credit. It also provided a special lookback for the Earned Income Tax Credit and Child Tax Credit for low-income individuals and provided a Contractor Pay Extension, allowing federal agencies to reimburse contractors for the cost of paid leave during the COVID pandemic.

It also extended to 2021 two charitable donation benefits that had been introduced for the 2020 tax year by the CARES Act:

• Taxpayers may continue to deduct charitable donations of up to 100% of their adjusted gross income .
• Individual taxpayers who do not itemize their deductions and take the standard deduction are allowed up to a $300 deduction for charitable cash contributions. Added by the Consolidated Appropriations Act: Married couples filing jointly who don’t itemize can deduct up to $600, but the deduction is no longer above-the-line, as it was for 2020.

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The American Rescue Plan Act

Following the inauguration of Joseph R. Biden as president, the new Democratic majority began taking steps to pass a new $1.9 trillion coronavirus relief package to deliver further help, called the American Rescue Plan Act.

The plan, which was passed by both houses of Congress and signed into law by President Biden on March 11, 2021, calls for a nationwide COVID-19 vaccination program, $1,400-per-person relief checks, financial support for small businesses, funding to helps schools reopen, expanded and extended unemployment insurance payments, rent subsidies, and more. The American Rescue Plan also includes a provision that student loan forgiveness issued between Jan. 1, 2021, and Dec. 31, 2025, will not be taxable to the recipient.

Investment And Support For Businesses And Infrastructure

Estimated Support For Businesses: $185.3 Billion

Percentage Of Stimulus Bill:10.15%

Business across the US has been hit hard by the economic fallout of the pandemic, with the hospitality and tourism industries hit especially hard. To aid businesses, President Bidens American Rescue plan provided over $185 billion in support to businesses and agencies.

Under the third stimulus bill, restaurants and bars will receive $28.6 billion in aid, to cover lost revenue and help make their premises COVID secure. In addition, the aviation industry will be provided with $25.5 billion.

As for small businesses, $10 billion has been earmarked as state provided small business support, with $15 billion put aside for EIDLs , and $7.3 billion provided as paycheck support.

Finally, within the business and infrastructure sections of the bill, Public Transport agencies will be provided with $30.5 billion, while FEMA will be given $53.7 billion to provide aid where it is needed most.

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Pelosi: Build Back Better Act Was Passed ‘for The People’

Pelosi took a victory lap at a press conference after the vote, flanked by other House Democratic leaders. She expressed confidence that the legislation will ultimately go to Bidens desk after the House and Senate reconcile their differences.

“We’ll be telling our children and grandchildren that we were here this day, she said.

This is legislation that create millions of good paying jobs, gives tax cuts to the middle class, lowers costs, especially health care costs and childcare costs for the middle class, and is paid for 100 percent,” she continued.

House Democrats had hoped to vote on the bill two weeks ago but a group of five centrist Democrats held it up over demands for a full cost estimate from the Congressional Budget Office, which released its analysis on Thursday and unlocked the votes from the holdouts.

The CBO estimated that the bill would cost $1.68 trillion over a decade while raising $1.27 trillion in revenue, with an extra $207 billion boost through tougher IRS enforcement.

Overall, the CBO projected the legislation would add $160 billion to the long-term deficit. But moderate Democrats were placated by Treasury Department estimates that said added IRS enforcement would yield larger savings of roughly $400 billion and fully pay for the spending package.

In a lengthy speech that delayed the vote, House Minority Leader Kevin McCarthy, R-Calif., blasted the legislation as the “most reckless and irresponsible spending bill in our nation’s history.”