American Rescue Plan Act of 2021 - Detailed breakdown

Amends the State Small Business Credit Initiative Act of 2010 to provide $10 billion for small businesses, with specific allocations for Tribal governments and businesses owned by disadvantaged individuals.

Expands eligibility for the Paycheck Protection Program to include additional 501(c) nonprofit organizations, setting limits on lobbying activities and employee counts (300 total or 500 per location).

Makes certain internet-only news and periodical publishers eligible for Paycheck Protection Program loans, provided they meet size standards and use the funds to support local or regional news.

Establishes a new grant program for restaurants, bars, food trucks, and other similar businesses to cover pandemic-related revenue losses. The program prioritizes businesses owned by women, veterans, and disadvantaged individuals.

Creates a pilot program to provide grants to community organizations that will conduct outreach and provide technical assistance to small businesses, especially those owned by disadvantaged groups, to help them access pandemic relief.

Allows recipients of Shuttered Venue Operator Grants to also receive a Paycheck Protection Program loan. The grant amount will be reduced by the amount of any PPP loan received after December 27, 2020.

Requires airports receiving funds to retain at least 90% of their workforce through September 30, 2021, with certain exceptions for hardship or safety.

Establishes a payroll support program where the federal government provides public contributions to supplement compensation for an eligible group of employees in aviation manufacturing companies.

Extends financial assistance to eligible air carriers and contractors for employee wages, with conditions on furloughs, stock buybacks, and executive compensation.

For the 2020 tax year, excludes up to $10,200 of unemployment compensation from gross income for taxpayers with an adjusted gross income of less than $150,000.

Creates a refundable payroll tax credit for employers and insurers to reimburse them for the cost of providing the required COBRA premium assistance.

Creates a refundable payroll tax credit for employers equal to 100% of qualified sick leave wages paid between April 1, 2021, and September 30, 2021, subject to certain limits.

Creates a refundable payroll tax credit for employers equal to 100% of qualified family leave wages paid between April 1, 2021, and September 30, 2021, up to $12,000 per individual.

Provides a refundable tax credit for eligible self-employed individuals unable to work due to COVID-19 related reasons, for days between April 1, 2021, and September 30, 2021.

Provides a refundable tax credit for eligible self-employed individuals unable to work due to COVID-19 family leave reasons, for up to 60 days between April 1 and September 30, 2021.

Amends the Internal Revenue Code to extend the employee retention credit for wages paid through the end of 2021.

Establishes a tax credit for eligible employers equal to 70% of qualified wages for each employee, up to certain limits, for wages paid after June 30, 2021, and before January 1, 2022.

Excludes targeted Economic Injury Disaster Loan (EIDL) advances from gross income for tax purposes and clarifies that associated business expenses remain deductible.

Excludes restaurant revitalization grants from gross income for tax purposes and allows business expenses paid with grant funds to remain deductible.

Allows a multiemployer pension plan to elect to retain its funding status from the prior plan year for its first plan year beginning between March 1, 2020, and February 28, 2021, or the next year.

Permits multiemployer pension plans in endangered or critical status for 2020 or 2021 to extend their funding improvement or rehabilitation periods by five years.

Allows multiemployer pension plans to smooth investment losses and other losses related to COVID-19 to ease minimum funding standards.

Appropriates necessary funds and establishes a program within the Pension Benefit Guaranty Corporation to provide financial assistance to financially troubled multiemployer pension plans.

Increases the per-participant premium rate for multiemployer plans insured by the Pension Benefit Guaranty Corporation to $52 for plan years beginning after December 31, 2030.

Allows single-employer pension plans to amortize funding shortfalls over a 15-year period, extended from the previous 7-year period, and resets existing shortfall amortization bases to zero.

Modifies and extends the interest rate stabilization corridor used for minimum funding calculations for single-employer plans and establishes a 5% floor on 25-year average segment rates.

Provides alternative minimum funding standards for eligible community newspaper plans, including a fixed 8% interest rate for liabilities and a 30-year amortization period for shortfalls.

Expands the $1 million limit on deductible employee remuneration to include the next five highest-compensated employees, effective for taxable years beginning after December 31, 2026.

State, local, and Tribal governments can use funds to respond to COVID-19 health and economic impacts, provide premium pay to essential workers, cover government revenue losses, and invest in water, sewer, or broadband infrastructure.

Extends the authority to collect certain customs user fees, including merchandise processing fees, from October 21, 2029, to September 30, 2030.

Requires local educational agencies to reserve at least 20% of relief funds to address learning loss through evidence-based interventions like summer learning, extended day, or afterschool programs.

Requires local educational agencies receiving funds to develop, seek public comment on, and make publicly available a plan for the safe return to in-person instruction within 30 days of receiving funds.

Prohibits states from disproportionately reducing per-pupil funding for high-need school districts and prohibits those districts from disproportionately cutting funding or staff for their high-poverty schools.

Changes the 90/10 rule for proprietary institutions of higher education to require that at least 10% of their revenue comes from non-Federal funds, closing a loophole related to military and veteran benefits.

Establishes the Emergency Connectivity Fund to help schools and libraries purchase equipment like Wi-Fi hotspots, modems, and computers for students and patrons to use off-campus.

Excludes from gross income any student loan debt that is discharged between January 1, 2021, and December 31, 2025.

Establishes emergency grants to ensure the survival and vitality of Native American languages during the COVID-19 pandemic, requiring the Secretary to award them within 180 days.

Establishes a $570 million fund to provide up to 600 hours of paid leave for federal employees unable to work due to specified COVID-19 related reasons, including vaccination.

Extends the authority under the CARES Act for federal agencies to reimburse contractors for paid leave to keep their employees in a ready state through September 30, 2021.

Deems that a federal employee diagnosed with COVID-19 between January 2020 and January 2023 sustained the injury in the performance of duty, making them eligible for workers' compensation benefits.

Establishes separate emergency leave funds to provide up to 600 hours of paid leave for FAA and TSA employees unable to work due to specific COVID-19 related reasons.

Establishes a fund to provide up to 600 hours of paid leave for Department of Veterans Affairs employees who are unable to work for various reasons related to COVID-19.

Directs the Secretary of the Treasury to establish a program to make periodic advance payments of the 2021 Child Tax Credit, starting July 1, 2021. An online portal will be created for taxpayers.

States and territories are prohibited from using fiscal recovery funds to directly or indirectly offset tax reductions or for deposit into any pension fund.

Any state, territory, local, or Tribal government that fails to comply with the rules on the use of funds will be required to repay the misused amount to the Secretary of the Treasury.

Specifies that funds made available to Tribes and Tribal organizations are on a one-time, non-recurring basis and will not be included in the calculation of future base funding amounts.

Mandates that funds appropriated to the Bureau of Indian Affairs under this section shall be excluded from the calculation of funds for Tribal governments in the 'Small and Needy' program.

Amends the Affordable Care Act for 2021 to treat individuals who received unemployment compensation as meeting income requirements for cost-sharing reductions, capping their household income at 133% of the poverty line for this purpose.

Authorizes funds under the Defense Production Act of 1950 to be used for the purchase, production, and distribution of medical supplies and equipment to combat the COVID-19 pandemic.

Provides funding for infection control support and for states to establish 'strike teams' to be deployed to skilled nursing facilities with COVID-19 outbreaks to assist with clinical care and staffing.

Provides premium assistance for COBRA continuation coverage for eligible individuals, treating their premiums as paid in full through September 30, 2021.

Allows eligible individuals to switch to a different, less expensive health plan offered by their employer under COBRA continuation coverage, subject to certain conditions.

Allows individuals who previously did not elect or discontinued COBRA coverage to elect it during a new 60-day window after receiving notification.

Imposes a $250 penalty on individuals who fail to notify their health plan that they are no longer eligible for COBRA premium assistance, with higher penalties for fraud.

Specifies that the premium assistance received by individuals for COBRA coverage is not considered gross income for tax purposes.

Temporarily increases the amount and expands eligibility for premium tax credits for health insurance coverage in 2021 and 2022, including for individuals with incomes above 400% of the poverty line.

For the 2020 tax year, taxpayers are not required to repay any excess advance payments of the premium tax credit they may have received.

Requires state Medicaid programs to cover COVID-19 vaccines, administration, testing, and treatments without any cost-sharing for beneficiaries.

Increases the Federal Medical Assistance Percentage (FMAP) to 100% for state expenditures on COVID-19 vaccines and their administration for a temporary period.

Allows states to extend Medicaid and CHIP eligibility for pregnant women to a full 12 months postpartum, providing continuous health coverage.

Allows states to provide community-based mobile crisis intervention services for mental health or substance use crises with an 85% enhanced federal matching rate for the first 3 years.

Offers a temporary 5 percentage point increase in the Federal Medical Assistance Percentage (FMAP) for two years to states that newly expand their Medicaid programs.

Provides a 100% Federal Medical Assistance Percentage for eight fiscal quarters for services received through Urban Indian Health Organizations and Native Hawaiian Health Care Systems.

Removes the cap on the maximum rebate amount that drug manufacturers must pay to Medicaid for certain drugs, effective January 1, 2024.

Temporarily increases the Federal Medical Assistance Percentage by 10 percentage points for state spending on Medicaid home and community-based services from April 1, 2021, to March 31, 2022.

Requires Children's Health Insurance Program (CHIP) plans to cover COVID-19 vaccines and treatment without cost-sharing and provides a 100% federal match for vaccine costs.

Establishes a minimum Medicare area wage index for hospitals located in states where all counties are considered urban, effective October 1, 2021.

Allows the HHS Secretary to waive certain Medicare requirements for ambulance services during a public health emergency, permitting payment even if transport doesn't occur due to EMS protocols.

Allows funds appropriated for the Indian Health Service to be used to reimburse obligations incurred to respond to COVID-19 dating back to the start of the public health emergency on January 31, 2020.

Provides over $30 billion in grants for public transit agencies to cover operating expenses like payroll, PPE, and lost revenue resulting from the COVID-19 pandemic.

Requires the National Railroad Passenger Corporation (Amtrak) to use a portion of its funding to restore the service frequency of its long-distance routes and recall employees furloughed due to the pandemic.

Provides payments up to 120% of outstanding indebtedness to pay off certain direct and guaranteed farm loans for socially disadvantaged farmers and ranchers.

Extends the 15 percent increase in Supplemental Nutrition Assistance Program (SNAP) benefits through September 30, 2021.

Authorizes states to temporarily increase the value of the cash-value voucher for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to up to $35.

During the COVID-19 public health emergency, emergency shelters will be reimbursed for meals served to individuals under the age of 25, an expansion from the previous age limit for at-risk school children.

Amends the Pandemic EBT program to operate in any school year with a public health emergency designation and extends it to cover summer periods following such a school year.

Requires child care providers receiving stabilization grants to certify they will maintain full employee compensation and benefits and provide tuition and copayment relief to families to the extent possible.

Extends additional enhanced benefits and the waiver of the 7-day waiting period for benefits under the Railroad Unemployment Insurance Act through September 6, 2021.

Establishes grants for states and Indian Tribes to assist low-income households with costs for drinking water and wastewater services by providing funds to reduce arrearages and rates.

Specifies the allocation of $1.434 billion for various programs under the Older Americans Act, including nutrition services, supportive services, family caregiver support, and COVID-19 vaccination outreach.

Establishes a center to provide training, technical assistance, and resources for programs serving grandfamilies and kinship families, focusing on those with older caregivers or children with disabilities.

Creates a program administered by the Treasury to provide financial assistance for rent, rental arrears, and utilities to eligible households for up to 18 months.

Provides tenant-based rental assistance vouchers for individuals and families who are homeless, at risk of homelessness, or fleeing domestic violence. Vouchers may not be reissued after September 30, 2023.

Establishes a fund in the Treasury to provide funds to states and tribes to prevent homeowner mortgage delinquencies, defaults, foreclosures, and loss of utilities for those experiencing financial hardship.

Appropriates funds for tenant-based rental assistance, affordable housing development, supportive services, and acquisition of non-congregate shelter units to benefit individuals and families who are homeless or at risk.

Authorizes the President to provide financial assistance for disaster-related funeral expenses for individuals and households, with a 100% federal cost share for COVID-19 declared disasters.

Extends Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, and Pandemic Emergency Unemployment Compensation programs through September 6, 2021.

Creates a $1 billion fund for states, territories, and tribes to provide non-recurrent, short-term benefits to low-income families with children who are experiencing hardship due to the pandemic.

Authorizes a refundable tax credit of $1,400 for eligible individuals, $2,800 for joint filers, and an additional $1,400 per dependent, distributed as a direct payment.

Phases out the recovery rebate for individuals with adjusted gross income over $75,000, heads of household over $112,500, and joint filers over $150,000.

For 2021, increases the Child Tax Credit to $3,000 per child ($3,600 for children under 6), makes it fully refundable, and includes 17-year-olds as qualifying children.

Extends the Child Tax Credit provisions to U.S. possessions like Puerto Rico, American Samoa, and others through payments to their respective governments.

For 2021, temporarily expands the EITC for workers without qualifying children by lowering the minimum age to 19 (with exceptions), eliminating the maximum age, and increasing the credit amount.

Allows certain married but separated individuals who do not file a joint return to be treated as not married for the purpose of claiming the Earned Income Tax Credit.

Increases the amount of disqualified investment income a taxpayer can have and still claim the Earned Income Tax Credit from $2,200 to $10,000 for 2021 and beyond.

Allows taxpayers to elect to use their 2019 earned income to calculate their Earned Income Tax Credit and Child Tax Credit for the 2021 tax year if their 2021 income is lower.

For 2021, makes the Child and Dependent Care Tax Credit fully refundable, increases the maximum credit percentage to 50%, and raises the expense limits to $8,000 for one child and $16,000 for two or more.

For the 2021 tax year, increases the exclusion for employer-provided dependent care assistance from $5,000 to $10,500 and allows for retroactive plan amendments.

For 2021, individuals who received unemployment compensation are treated as having household income no greater than 133% of the poverty line, making them eligible for maximum premium tax credits.

Establishes a program for the Pension Benefit Guaranty Corporation to provide non-repayable financial aid to eligible, struggling multiemployer pension plans to ensure benefit payments through 2051.

Requires multiemployer plans receiving special financial assistance to reinstate any previously suspended benefits and provide back payments to affected participants and beneficiaries.

Modifies the state matching requirement for increased child care assistance funding for fiscal years 2021 and 2022, treating the federal share as 100%.

Defines 'premium pay' for essential workers as up to $13 per hour in addition to regular wages, with a maximum of $25,000 per individual worker during the COVID-19 public health emergency.

Grants the Secretary of Housing and Urban Development authority to waive or set alternative requirements for housing programs to expedite the use of funds, excluding rules on fair housing and labor.

Of the $14.482 billion for VA medical care, up to $4 billion is designated for health care furnished through the Veterans Community Care program.

Establishes a program providing up to 12 months of retraining assistance for eligible veterans unemployed due to the COVID-19 pandemic, limited to 17,250 veterans.

Prohibits the Department of Veterans Affairs from collecting copayments or cost-sharing for healthcare from April 6, 2020, through September 30, 2021, and requires reimbursement for any amounts paid.

Waives a statutory limitation on U.S. contributions to the Global Fund to Fight AIDS, Tuberculosis and Malaria, allowing the full appropriated amount to be provided.