The American Rescue Plan: What’s in it for you?
Dear friend,
Today, Congress sent the American Rescue Plan to President Biden to be signed into law. This $1.9 trillion package is one of the biggest spending bills in American history, and will provide direct relief to thousands of folks across our country.
This bill contains multitudes. It allocates $14 billion to help with COVID-19 vaccine distribution. It sends $130 billion to K-12 schools to help with a safe reopening. Bars, restaurants, small business, and live performance venues that have been shuttered by the pandemic will also receive relief. Unlike the previous stimulus package, $350 billion will be going out to state, local, and tribal governments. These funds will help Illinois continue to fight the pandemic and provide critical services to its residents.
Below I've outlined some of the key provisions within this package that may directly impact you and your family.
Stimulus Checks
One time $1,400 stimulus checks will be going out to most Americans. These payments will phase out based income, maxing out at $80,000 for individuals and $160,000 for married couples. Children and adult dependents will be eligible for the full $1,400. These adult dependents, including disabled adults and college students, weren’t eligible for the first two rounds of stimulus checks. The Biden Administration hopes these payments will arrive in people's bank accounts by the end of the month.
Expansion of Tax Credits for Children
The Tax Credits for Children program will be expanded to $3,000 per child and $3,600 for children under the age of 6. The expansion could benefit as many as 83 million children and reduce the number of children living in poverty by more than 40 percent, at least temporarily. Payments would be based on 2020 income for most taxpayers. Half of the tax credit will be paid out in monthly checks, beginning in July. The other half of the credit will be applied to income taxes at the end of the year. While this is only a one-year expansion, Democrats hope to make this new program permanent. Click here to calculate what you would receive from the newly expanded Tax Credits fo Children program.
Extension of Unemployment Insurance
Federal supplemental unemployment benefits have been extended at $300 per week through September 6, 2021. In addition, the first $10,200 of benefits received in 2020 would be tax-free for households with incomes below $150,000. This extension will provide relief to many whose Federal benefits were set to begin expiring on March 13. If you're wondering how this extension will affect your unemployment benefits please don't hesitate to reach out to my office.
Rent and Mortgage Assistance
This package sets aside $45 billion in rental, mortgage and utility assistance. These assistance programs will be run by the state, so stay tuned for updates once relief programs are up and running in Illinois later this Spring.
While this legislation contains many types of relief, it unfortunately fell short of raising the federal minimum wage to $15/hour. Even so, it will provide help to folks who need it the most. If you have any questions about what's included in the American Rescue Plan please don't hesitate to reach out to my office.
Take care,
- Will
*Haga click aquí para ver este mensaje en Español*
Don't miss our upcoming State Benefits Webinar!
