On Thursday, March 11, President Biden signed the American Rescue Plan Act of 2021 into effect. This bill provides additional relief to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses.
Specifically, the bill provides funding for:
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agriculture and nutrition programs, including the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program);
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schools and institutions of higher education;
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child care and programs for older Americans and their families;
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COVID-19 vaccinations, testing, treatment, and prevention;
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mental health and substance-use disorder services;
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emergency rental assistance, homeowner assistance, and other housing programs;
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payments to state, local, tribal, and territorial governments for economic relief;
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multi-employer pension plans;
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small business assistance, including specific programs for restaurants and live venues;
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programs for health care workers, transportation workers, federal employees, veterans, and other targeted populations;
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international and humanitarian responses;
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tribal government services;
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scientific research and development;
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state, territorial, and tribal capital projects that enable work, education, and health monitoring in response to COVID-19; and
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health care providers in rural areas.
The bill also includes provisions that:
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extend unemployment benefits and related services;
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make up to $10,200 of 2020 unemployment compensation tax-free;
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make student loan forgiveness tax-free through 2025;
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provide a maximum recovery rebate of $1,400 per eligible individual;
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expand and otherwise modify certain tax credits, including the child tax credit and the earned income tax credit;
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provide premium assistance for certain health insurance coverage; and
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require coverage, without cost-sharing, of COVID-19 vaccines and treatment under Medicaid and the Children’s Health Insurance Program (CHIP).