WHAT’S IN THE AMERICAN RESCUE PLAN ACT?
Congress is expected to pass the American Rescue Plan tomorrow morning, with President Joe Biden likely to sign it into law shortly thereafter. The $1.9 trillion COVID relief bill is expansive and includes numerous provisions that will directly affect Greater Louisville. See below for some of the bill’s key provisions.
- Direct economic impact payments of $1400 per individual. single filers with incomes up to $75,000, head of household filers with incomes up to $112,500, and joint filers with incomes up to $150,000 will receive the full payment of $1,400. Payments are phased out for single filers making $80,000, head of household filers making $120,000, and joint filers making $160,000.
- The Child Tax Credit is expanded. The credit will become fully refundable for 2021 and will increase from $2000 per child to $3000 per child or $3600 for children under the age of six. Payments will be based on 2019 or 2020 tax returns. single filers earning up to $75,000, head of household filers earning up to $112,500, and joint filers earning up to $150,000 would be eligible to receive the full refundable credit. The credit is phased out for incomes above these thresholds.
- Extended unemployment insurance benefits through September 6, 2021, and maintains the weekly supplement unemployment benefit at $300 per week.
- $7.25 billion for the Paycheck Protection Program
- $28.66 billion for a Restaurant Revitalization Fund
- $15 billion for Economic Injury Disaster Loan program
- Extended Employee Retention Tax Credit through December 31, 2021 and increased eligibility and applicability.
- Extended Payroll Tax Credit for paid sick leave and paid family and medical leave.
- $350 billion for states and localities for economic relief (Coronavirus Relief Funds) with new eligible expenses including:
- Investment in water, sewer, and broadband infrastructure
- Retention of essential workers and premium pay
- Ineligible expenses include pensions and tax cuts
- Kentucky is expected to receive a total of $4.2 billion of these funds with $2.4 billion for the state, $445 million for Metro Cities, $886 million for counites, in addition to other funds.
- Indiana is expected to receive a total of $5.8 billion of these funds with $3 billion for the state, $853 million for Metro Cities, $1.3 billion for counites, in addition to other funds.
- $39 billion for the Child Care and Development Block Grant and an expansion of the Child and Dependent Care Tax Credit.
- Expanded subsidies in the Affordable Care Act Marketplace, including removal of the subsidy cap for individuals with incomes at 400 percent of the poverty line, a cap on 8.5 percent of an individual’s income for silver plan premiums, a provision allowing individuals below 150 percent of the poverty line to pay no premiums.
- $27.5 billion for rental assistance, $10 billion for homeowners, and $5 billion for utility payments.
- $20 billion to support COVID-10 vaccine deployment
- $51 billion for testing and contract tracing
- $130 billion to support the reopening of K-12 schools (for example: improving ventilation systems, reducing class sizes, and educational remediation)
- $40 billion for colleges and universities
- Forgiven student loan debt will not be considered taxable income for the years 2020 to 2026.
- Stabilization of multiemployer pension plans.
- New funding to address health disparities.
Note, the Senate version of the bill did not include a federal minimum wage increase.