The American Rescue Plan Explained:
Where does the funding go?
The bill intends to mitigate the impact of COVID-19 in the following areas:
- Housing and homelessness.
- Health care coverage & vaccine access.
- Child care, education spending, and food assistance.
- Stimulus payments & unemployment assistance.
- Support for small businesses.
- The $15/hour minimum wage was cut from this legislation.
- Earners above $80k fall outside the income cap for direct financial aid.
- The Unemployment Insurance benefit was reduced from $400 to $300.
- The IRS is challenged to administer billions of dollars worth of tax refunds and checks shortly before the tax filing deadline.
- Many Americans without bank accounts or home addresses do not know they qualify for EITC (Earned Income Tax Credit), CTC (Child Tax Credit), or CDCTC (Child & Dependent Care Tax Credit), delaying their access to direct financial assistance.
Why does the implementation of the bill matter?
- Racism, discrimination, and socioeconomic disparities are structurally embedded in our health, social, and economic systems.
- Communities of color, rural areas, and minority groups have been amongst the most devastatingly impacted by the pandemic.
Who is eligible to receive the third payment? People who:
- Filed a 2020 tax return
- Filed a 2019 tax return if their 2020 return has not been submitted or processed yet.
- Did not file a 2020 or 2019 tax return, but registered for the first Economic Impact Payment using the special Non-Filers portal last year.
- Are federal benefit recipients as of December 31, 2020, who do not usually file a tax return and received Social Security and Railroad Retirement Board benefits, Supplemental Security Income (SSI), and Veteran benefits.
Check our COVID-19 Policy Updates Center for more information!