American Rescue Plan Act of 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]
Long title
To provide for reconciliation pursuant to title II of S. Con. Res. 5.
ARP, ARPA
COVID-19 Stimulus Package, American Rescue Plan
March 11, 2021
On February 8, 2021, the Financial Services and 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]
Response[edit]
Congress[edit]
The relief package received universal support from Democrats and universal opposition from Republicans, passing on a party-line vote.[122][123] Some House Democratic progressives expressed disappointment with some changes to the relief package made in the Senate (such as the removal of the $15 minimum wage) to win over moderate Democratic support, but continued to support the package.[124]
Republicans in Congress opposed the bill, claiming it to be unaffordable,[72] and claiming the bill only benefitted Democratic-led states. Though the bill provided some funding for Republican-leaning states, 61% of aid would go to states that voted for Biden in November 2020.[125]
Some Democrats argued the bill's provisions were similar to policies Republicans had supported in the Trump administration; Republicans responded by arguing that such measures were no longer necessary, as the economy was no longer in a recession and COVID-19 vaccines were now being administered.[72]