The United States Congress passed on Wednesday, March 10, 2021
the American Rescue Plan Act of 2021 (the
"Act"), a massive $ 1.9 trillion stimulus aid package
this is intended to support individuals and companies
affected by COVID-19. President Biden signed the law on
Thursday March 11th 2021.
The law follows two other federal stimulus relief laws: Das
Coronavirus Aid, Relief and Economic Security Act
("CARES" Act), adopted March 2020, and the Consolidated Act
Central Act passed in December 2020.
The main elements of the law are summarized below. The
The following page references refer to the version of the law passed by
both houses of Congress.
Individual stimulus tests
The law allows a one-time direct payment of $ 1,400 per person
Person for those earning less than $ 75,000 and those who submit
joint returns below $ 150,000. See Act, p. 342,
Section 6428B (b). The law also allows for $ 1,400 per loved one.
I would. Payments will gradually exceed this
Income levels and disappear completely for those who overwork
$ 80,000 and people filing joint returns make over $ 160,000.
Id., P. 343, §§ 6428B (d) (1) – (2).
Unemployment benefit
The law extends federal unemployment benefits by $ 300 per week
until September 6, 2021. Id., p. 290, §
9011 (a) (1) (B). The law also waives federal income tax for those
first Unemployment Benefit of $ 10,200 in 2020 for
Households Earning Less than $ 150,000. Id., P. 299-300,
Section 9042 (c) (1).
Earned Income Tax Credit ("EITC")
The law increases the maximum EITC credit for employees
without children and extends eligibility to more people, including
young adults aged 19 to 24 who are not full-time students and people
over 65 years old. Id., P. 381-83, §§
9621 (b) (1) – (2).
Child tax credit
The law previously temporarily expanded the child tax credit
Valued at up to $ 2,000 per child under the age of 17. The extended tax
For children ages 5 and up, a loan of up to $ 3,600 would be worth it
up to $ 3,000 for children ages 6-17. Id., P. 360,
Section 9611 (a) (i) (3). The law also provides that the federal government
Government will send prepayments of the loan to Americans in
regular installment payments in the second half of 2021. Id.,.
p. 363, § 7527A (a).
Nutritional aid
The law extends the supplement increase by 15%
Benefits of the Utility ("SNAP"), also known as Grocery
Postage stamps or electronic power transmission ("EBT") services,
until September 30, 2021. Id., p. 22, §
1101 (a). It also includes $ 880 million (or the total of $ 490 million
be available through September 30, 2022 and be $ 390 million
available until September 30, 2024) for the Special Supplemental
Nutritional program for women, infants and children
("WIC"). Id., P. 28-29, §§ 1105 (e),
1106. Likewise, the law allows states to continue the pandemic EBT
Program. I would. p. 31, § 1108. The Pandemic EBT Program
provides funding for families to replace free and discounted prices
Meals in cases when their children's schools are closed, such as
previously established under the CARES Act in March 2020.
I would.
Housing assistance
The bill will send a total of $ 20 billion1 to state and local authorities
Governments should help low-income households with rent and electricity bills
Help. Id., P. 141, § 3205 (a) (1)). Additionally,
Nearly $ 10 billion is said to be helping homeowners who are struggling
Pay mortgages and property taxes. Id., P. 146-47,
Section 3206 (a).
Optional paid sick leave and family leave
Employers who grant voluntarily paid sick leave and family leave
Tax will continue to be received through October 1, 20212
Credits. Id., P. 418, § 3205 (a) (1). The law, however
does not restore the services that expired in December 2020,
including paid sick days for employees who have completed COVID-19 or COVID-19
paid family leave for employees who, meanwhile, stay at home with children
Schools are closed.
Education and childcare
The law allows nearly $ 130 billion through September 30, 2023
Elementary and secondary school students on their return to the
Classroom. Id., P. 33, § 2001 (a). The means have to be
Used to update ventilation systems, reduce class sizes and implement
social distancing and / or purchase of personal protective equipment.
Id., P. 35-40, § 2001 (e). The law also provides for $ 39
Billions to childcare workers to fund similar initiatives
to help families in difficulty pay for their childcare costs.
Id., P. 63-65, §§ 2201 (a), 2202 (b). The $ 39
Billions of dollars are split between nearly $ 15 billion for the child
Care and Development Block Grant and nearly $ 24 billion for children
Financing of care stabilization. I would.
Vaccine distribution and testing costs
The law provides funding for the distribution of COVID-19 vaccines.
Administration, COVID-19 test, contact tracing, genomic
Sequencing and efforts related to global health security and
global disease detection and response. Id., P.
80-91, § 2301 (b). The law also sees one
Another $ 50 billion is expected to remain available through September 30, 2025
for the FEMA Disaster Relief Fund to cover the associated costs
Disaster declarations such as funeral refunds
Costs. Id., P. 188-89, § 4005. All states have
received disaster statements for the COVID-19 pandemic and
As a result, FEMA can offer to individuals and households
Refunds for COVID-19-related funeral expenses
between January 20, 2020 and December 31, 2020 3
Affordable Care Act and COBRA Subsidies
The law will temporarily increase subsidies for people
Get health insurance through the Affordable Care Act
Marketplace. In 2021 and 2022, participants will pay no more than 8.5%
of their income towards coverage, and those who earn more than that
The current upper limit of 400% of federal poverty will also be reached
eligible. Id., P. 462-63,
Section 9661 (a) (iii) (II). Special improvements to the credit
are also included for people receiving unemployment
Compensation in 2021. In addition, people whose job was
Unintentionally terminated or reduced hours can register
(or stay with) your previous employer's health insurance
Federal government subsidies to cover the full cost of their COBRA
Rewards from April 1, 2021 to September 30, 2021.
Id., P. 314-15, § 9501 (a) (1). The funding period
ends earlier if the person is entitled for certain
other group insurance or medicare. Become an employer
You will receive a credit for the COBRA premium grant through a refund
Income tax credit on the employer's quarterly taxes.
Small business relief
The law provides $ 15 billion for targeted economic violations
Disaster Loan ("EIDL") payments that provide economic benefits
Relief for businesses that are currently experiencing a temporary one
Loss of sales due to COVID-19. Id., P. 205, §
5002 (b). The law also provides an additional $ 7.25 billion for the EU
Paycheck Protection Program ("PPP") forgivable
Loans. Id., P. 204, § 5001 (d) (2). It doesn't stretch
the current application deadline of the PPP, which is scheduled for
The law also provides for further grants for
small businesses in sectors hardest hit by the pandemic
economic cooling. This contains:
- $ 28.6 billion for restaurants, bars,
and other authorized food and beverage providers through the
Restaurant Revitalization Fund. 4 Id., P. 212,
Section 5003 (b) (2). - $ 23 billion for the aviation industry,
That includes $ 14 billion for eligible airlines and $ 1 billion
for authorized contractors see id., p. 262,
Section 7301 (b) (1) (A) – (B) and $ 8 billion for airports.
Id., P. 234, § 7102 (a) (1). - $ 1.25 billion for a gated venue
Operators such as operators of music venues, theater producers and
other performing arts organizations. Id., P. 222,
Section 5005 (a).
The law does not provide for an increase in the federal government
Minimum wage. The house legislation was originally proposed gradually
Increase the federal minimum wage to $ 15 / hour by 2025 and
Extension of the minimum wage to tip workers, youth workers and
Workers with disabilities. The Senate MP, however
At the end of February it was decided that the House proposal had been violated
strict rules of procedure in the Senate regarding a budget
Voting process that would have shielded the bill from a
Filibuster in the Senate. As a result, the minimum wage regulation
was not included in the Senate Bill or the Act as passed.
* * *
We note that COVID-19 legislation applies at both state and federal levels
The levels change every day and the information they contain
This memorandum is only valid as of the date specified
further up.
Footnotes
1 CNN, "Congress
Exists Bidens Covid-19 Stimulus Bill ", available
at https://www.cnn.com/politics/live-news/stimulus-house-vote-03-10-21/index.html.
2
I would.
3
CBS, "Stimulus Includes $ 2 Billion For Funerals From COVID-19
The victims. Will families get money ?, "Available
at https://www.cbsnews.com/news/covid-relief-bill-2-billion-funerals-victims/;
FEMA, Recovery & Economic Support, available
at https://www.fema.gov/disasters/coronavirus/economic.
4 for
additional information on the Restaurant Revitalization Fund
see Law & Winston, see Winston & Strawn & # 39; s
Summary of the COVID-19 Restaurant Revitalization Fund
published separately at a later date.
Originally published by Winston & Strawn LLP, March
2021
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