American Rescue Plan Act of 202
(Public Law 117-2) High Level Summary
The President recently signed into law H.R. 1319, the American Rescue Plan for 2021. The law directs approximately $1.9 trillion in funding to various programs to support the rebounding economy and provide aid to individuals and families impacted by the pandemic. Among the bill’s big-ticket items, it provides $350 billion in support to state and local governments and sends $1,400 stimulus checks to individuals making less than $75,000 and $2,800 stimulus checks to married couples earning less than $150,000. These individuals and families will also receive $1,400 stimulus checks for each dependent, including college students and dependent seniors. Those individuals earning more than $75,000 but less than $80,000 and married couples earning more than $150,000 but less than $160,000 will be eligible for a reduced stimulus check while those earning more than those amounts will not receive payments.
The law allocates over $50 billion in funding through a variety of programs to help small businesses, including $28.6 billion for restaurants and bars/pubs via the Restaurant Revitalization Fund, $15 billion for targeted Economic Injury Disaster Loan (EIDL) advance payments, and an additional $7.25 billion for the PPP. It also expands PPP eligibility to include 501c (3), (4), (6), or (19) organizations that meet certain criteria. PPP loan forgiveness is also expanded to include amounts paid toward premiums on behalf of individuals who qualify for COBRA coverage. This only applies to loan forgiveness applications received after 3/10/21.
The American Rescue Plan Act extends the enhanced federal unemployment insurance payment until September and continues the $300 per week federal benefit put in place by the previous COVID relief bill in late 2020. The Child Tax Credit is also expanded under the from $2,000 to as much as $3,600 for children under 5 and up to $3,000 for kids ages 6-17. Vaccine research and distribution is set to receive billions of dollars under the bill, while Congress directed approx. $130 billion to schools to help them re-open and provided funds to assist restaurants and live venues struggling due to the pandemic.
In terms of credit union priorities, the legislation establishes a $10 billion housing assistance fund to help Americans make mortgage, utility, and tax payments. This has been an MCUL priority since early in the pandemic. In addition, the bill directs $30 billion in assistance to struggling renters and landlords and it renews the paid and sick leave payroll tax credits in last year’s Families First Coronavirus Response Act. It also makes both state and federally chartered credit unions eligible for the credits.
As mentioned previously, state and local governments are set to receive significant support under the law. It’s been reported the state of Michigan and local governments in the state are set to receive upwards of $10.3 billion. That amount includes approx. $5.7 billion to account for lost revenues at the state level with another $256 million set aside for capital projects. The remainder of the money will go to local governments through three programs; the first has Michigan counties receiving an estimated $1.9 billion, the second provides approx. $1.8 billion to “metropolitan cities”, while the third pool of dollars will go to so called “non-entitlement communities” in the state and they are expected to receive $686 million in funds to be split. The following spreadsheet from the Southeast Michigan Council of Governments (SEMCOG) lists projected dollars to be distributed to all local governments in the state:Go to main navigation