American Rescue Plan Act (H.R. 1319)

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This pages provides a high-level overview of this law. For full list of provisions, line-item appropriations, and specific funding allocations, please view our detailed breakdown.

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Summary

Gives money to people, businesses, and governments to help them recover from the health and economic effects of the COVID-19 pandemic.

What problem does this solve?

The COVID-19 pandemic created a major public health crisis and caused severe economic problems for millions of Americans. This law provides money for vaccines, schools, small businesses, and direct payments to families to fight the pandemic and boost the economy.

What does this law do?

Provides $1,400 direct payments

Sends a third round of stimulus checks of up to $1,400 to eligible adults and dependents to provide immediate financial relief.

Extends and enhances unemployment benefits

Continues federal unemployment programs through September 6, 2021, and provides an additional $300 per week on top of state benefits.

Expands the Child Tax Credit for 2021

Increases the credit to $3,000 per child ($3,600 for children under 6) and makes it fully refundable, with half paid in advance monthly payments.

Creates State and Local Fiscal Recovery Funds

Provides $350 billion for states, cities, counties, and tribal governments to cover increased costs and lost revenue due to the pandemic.

Gives emergency funding to schools and colleges

Allocates over $122 billion for K-12 schools to safely reopen and address learning loss, and nearly $40 billion for higher education institutions.

Funds vaccine distribution and public health

Appropriates billions for COVID-19 vaccine activities, testing, contact tracing, and strengthening the public health workforce.

Creates a grant program for restaurants

Establishes a $28.6 billion fund to provide grants to restaurants and other food establishments to cover pandemic-related revenue losses.

Provides emergency rental and homeowner aid

Allocates over $21 billion for emergency rental assistance and nearly $10 billion for a Homeowner Assistance Fund to prevent evictions and foreclosures.

Increases subsidies for health insurance

Temporarily expands premium tax credits for 2021 and 2022 to make health insurance plans purchased on the ACA marketplaces more affordable.

Extends tax credits for paid sick and family leave

Continues payroll tax credits for employers who voluntarily offer paid sick and family leave for COVID-19 related reasons through September 30, 2021.

Who does this affect?

Low and middle-income families
Unemployed workers
State, local, and Tribal governments

What is the real world impact?

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Provide pandemic relief

Delivers financial aid to individuals, businesses, and governments to lessen the economic and health impacts of the COVID-19 pandemic.

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Stimulate economic recovery

Injects a large amount of money into the economy through direct payments, unemployment benefits, and government spending to prevent a long-term recession and encourage growth.

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Expand the social safety net

Temporarily expands programs like the Child Tax Credit and health insurance subsidies, which some see as a test for making these changes permanent to reduce poverty.

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Risk of inflation

Critics argue that the large amount of spending could overheat the economy, leading to a significant increase in prices for everyday goods and services.

When does this start?

This law includes many different programs that start on various dates, with most taking effect immediately upon its signing on March 11, 2021.

Unemployment Benefit Extension

Extended federal unemployment programs, including the $300 weekly supplement, are effective for weeks of unemployment ending on or before September 6, 2021.

COBRA Premium Assistance

Full premium assistance for eligible individuals for COBRA continuation coverage is available for the period from April 1, 2021, through September 30, 2021.

Paid Leave Credits

Tax credits for employers who provide paid sick and family leave apply to wages paid for the period beginning on April 1, 2021, and ending on September 30, 2021.

Employee Retention Credit

The employee retention tax credit is extended to apply to wages paid after June 30, 2021, and before January 1, 2022.

Use of State and Local Funds

State, local, and tribal governments must use the fiscal recovery funds to cover costs incurred by December 31, 2024.

American Rescue Plan Act of 2021