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Hi John,
What’s in the latest federal COVID relief package?
Earlier this month, President Biden signed the American Rescue Plan (ARP) Act into effect, releasing $1.9 trillion in federal funds for economic recovery from COVID-19. Let’s not mince words. This relief package a big deal; the ARP not only provides critical financial assistance to help families endure pandemic-related hardship, it also cuts poverty in the US by a third – and cuts child poverty by over 40%! – for the next year while all parts of the law are in effect. This is your victory! For YEARS, you’ve been sharing stories and telling lawmakers about the need for this and the other Washington to prioritize the needs of low-income communities and communities of color. And they just did in a BIG way!
The ARP addresses hardship and cuts poverty by including:
- A third round of stimulus checks that started rolling out mid-March! Read more here.
- An extension of Unemployment Insurance (UI) benefits through early September, including the $300-per-week federal supplement. Read more here.
- Billions in federal funding that will start funneling through the states to local organizations before May to provide rent and utility assistance to low-income renters experiencing hardship due to the pandemic. The ARP also includes $5 billion for additional Housing Choice vouchers for those experiencing homelessness or who are at imminent risk.
- A Child Tax Credit (CTC) that will be temporarily expanded to more families and increased to $3,000 per child 6-17 years old and $3,600 per child under 6 for 2021. Under this provision, not all members of the household need to be documented citizens to qualify, meaning that mixed-status families can receive the credit for each child with a valid Social Security Number. This 2021 tax credit will be paid to eligible families in monthly installments of up to $300 per child anticipated to start in July of this year.
- For those who purchase health insurance through the Affordable Care Act (ACA) marketplaces, the ARP temporarily increases subsidies, lowering the cost of health insurance premiums. It also allows those who lost their job to keep the healthcare coverage they had through their employer, by subsidizing the full cost of premiums through a federal program called COBRA through September 2021.
- Taxes waived for any student loan debt that is forgiven or discharged from 2021 through 2025 so that those eligible to have student loan debt forgiven will not be stuck with a large tax bill. Federal student loan payments are currently paused and interest rates are set at 0% through September 2021.
We are here to help you access these critical investments!
Over the next weeks, we will be rolling out fact sheets with the information you need to help you access these cash payments and health care subsidies. Look for those on our website and on social media soon. Have questions about accessing the new child tax credit or want more info about the health care subsides? Send your questions our way and we’ll do our best to find you the right information. In the meantime, we hope that knowing this support is coming will provide some much-needed relief after this really tough year!
Thank you for all you do!
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