American Rescue Plan Act of 2021

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American Rescue Plan Act of 2021
Pub. L.Tooltip Public Law (United States) 117–2 (text) (PDF)
Statutes at Large135 Stat. 4
Legislative history
on March 11, 2021

The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, is a US$1.9 trillion economic stimulus bill passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021, to speed up the country's recovery from the economic and health effects of the COVID-19 pandemic and recession.[1] First proposed on January 14, 2021, the package builds upon many of the measures in the CARES Act from March 2020 and in the Consolidated Appropriations Act, 2021, from December.[2][3]

On February 8, 2021, the

Education and Labor committees released a draft of $1.9 trillion stimulus legislation. A portion of the relief package was approved by the House Ways and Means on February 11, setting it up for a vote in the House. The legislation was also approved by the Transportation and Infrastructure, Small Business, and House Veterans Affairs committees. On February 22, the House Budget Committee voted 19–16 to advance the bill to the House for a floor vote.[4] The bill passed the House by a vote of 219–212 on February 27. All but two Democrats voted for the bill and all Republicans voted against the bill.[5] A modified version passed the Senate on March 6 by a vote of 50–49.[6] The final amended bill was passed by the House on March 10 by a vote of 220–211 with one Democrat (Jared Golden) voting against it alongside all Republicans.[7] The bill was signed into law by President Biden on March 11, 2021.[8]

The American Rescue Plan Act provided for direct economic stimulus payments to individual taxpayers with incomes of $75,000 or less. The Act also allocated $350 billion in assistance to state and local governments, $14 billion for COVID-19 vaccine distribution, and $130 billion to schools to help them safely re-open for in-person instruction. The Act included $300 billion in unemployment benefits that were scheduled to extend through Labor Day 2021, as well as an expanded child tax credit. In addition, the Act called for the distribution of $50 billion to small businesses and another $25 billion for relief for small and mid-sized restaurants. The Act expanded eligibility for Affordable Care Act (ACA) subsidies and gave states incentives to expand Medicaid.[8]

Background

Impact of the COVID-19 pandemic

By mid-2020, the United States was facing what the National Bureau of Economic Research determined was an economic recession,[9] and by February 2021, 500,000 Americans had died of COVID-19.[10] Over 29 million Americans had tested positive for COVID-19 by March.[11] The United States also faced eviction, unemployment, and hunger crises since the start of the pandemic.[12] Over 30 to 40 million Americans faced a risk of being evicted from their homes by January 2021.[13] Then-president Donald Trump also faced criticism for not having a federal strategy to combat the pandemic, such as nationwide mask mandates on transportation, a mass testing strategy, health guidelines, providing medical-grade protective gear, and having an effective vaccine distribution strategy. On January 20, the day after Joe Biden was inaugurated, he warned that the death toll could exceed 500,000.[14] According to Snopes, Biden inherited a vaccine distribution strategy from Trump, and disease expert Anthony Fauci said that his administration would incorporate some aspects of that Trump-era strategy in its ongoing work.[15]

Previous COVID-19 pandemic legislation