The American Rescue Plan puts Georgia on path to recovery

By Clare S. Richie, Public Policy Specialist

On March 11, 2021, Congress passed and President Biden signed into law a $1.9 trillion relief package, The American Rescue Plan (H.R. 1319), which seeks to provide cash resources to families and invests in critical areas like child care, education, health coverage, housing and more for states and localities to meet COVID-19 related challenges and set the foundation for recovery.

Key provisions aligned with the Community Foundation’s Equity of Opportunity pillars include:

PROSPEROUS PEOPLE

Early Education & Child Care

• $15 billion for the Child Care and Development Block Grant
• $24 billion for newly created child care stabilization grants
• $1 billion for Head Start programs

K-12 Education

• $122.7 billion (through September 30, 2023) to help K-12 schools re-open safely, meet student educational needs and address lost learning (20 percent  of funds)
• $3 billion for Individuals with Disabilities Education Act (IDEA)
• $7.2 billion for an Emergency Connectivity Fund to reimburse schools and libraries for internet access (including wi-fi hotspots, modems, routers, and more)

Post-Secondary Education

• $40 billion to higher education institutions (through September 30, 2023) to implement public health protocols, distance learning, and emergency grants to students in need. Fifty percent must go directly to students as financial aid. Includes $3 billion to HBCUs and other minority-serving institutions
• Eliminates tax on student loans between December 31, 2020 and January 1, 2026

Unemployment Insurance

• Maintains $300 per week federal supplement to unemployment insurance benefits through September 6 and increases the number of weeks the benefit is available from 50 to 79 weeks
• Exempts the first $10,200 in 2020 unemployment insurance benefits from federal income tax for households with incomes less than $150,000

2021 Tax Credits

• For adults without children, raises the Earned Income Tax Credit to $1,502, raises the income cap to $21,000 and expands age eligibility (19 and older)
• Increases the Child Tax Credit to $3,000 per child age 6 to 17, and $3,600 for children under age 6. The amount is gradually reduced for couples earning more than $150,000 ($75,000 for individuals).
• Increase the maximum credit amount of the Child and Dependent Care Tax Credit to $4,000 for one child and $8,000 for two or more children

STRONG FAMILIES

Food Assistance

• Extends the 15% Supplemental Nutrition Assistance Program (SNAP) monthly benefit increase through September 30, 2021
• $490 million to increase the cash-value voucher provided under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) up to $35 per person, per month during the pandemic
• Extends Pandemic EBT (P-EBT) to any school year or summer following a designated public health emergency

Access to Affordable Healthcare

• (Optional) Increases states’ FMAP by 5% for two years if they expand Medicaid
• (Optional) Medicaid five-year state plan option to extend post-partum coverage to 12 months (Georgia has a pending 1115 demonstration waiver to extend care to six months)
• Requires Medicaid and CHIP to cover vaccines and COVID treatment without any cost-sharing, and increases the FMAP to 100 percent for vaccine costs for up to one year after the public health emergency
• Increases FMAP by 10 percent for home and community-based services
• $34 billion to expand ACA subsidies for two years – expand eligibility to buy plans on the marketplace and increase subsidies for lower-income enrollees
• Subsidizes 100 percent COBRA (Consolidated Omnibus Budget Reconciliation Act) premiums for those who lose their jobs through September 30, 2021
• $7.66 billion for state, local and territorial public health departments to establish, expand and sustain their public workforce
• $7.6 billion for community health centers

Mental Health

• Provides an 85 percent FMAP for three years to states that cover mobile crisis intervention services for mental health or substance abuse disorders
• $1.5 billion for 2021 Community Mental Health Services Block grants
• $1.5 billion for Prevention and Treatment of Substance Abuse Block grants for 2021
• $420 million for grants to Certified Community Behavioral Health Clinics

THRIVING COMMUNITIES

Housing

• $21.6 billion of Emergency Rental Assistance for low-income renters who have lost income or are experiencing other hardship. See Treasury FAQ
• $5 billion in Emergency Housing Vouchers for people experiencing or at risk of homelessness (funds available through September 30, 2030)
• $5 billion of flexible funding for the HOME program allowing states and localities to invest in supportive housing development, rental assistance, shelters and services for people experiencing or at risk of experiencing homelessness

OTHER

• Direct payments of $1,400 to individuals who earn up to $75,000 annually ($150,000 for married couples). Eligibility is capped for individuals who make more than $80,000 ($160,000 for couples). Adult dependents (including full-time students under 24) are also eligible
• $350 billion to help states ($193.5 B) counties ($65.1B), municipalities ($65.1B), tribes ($20 B) and territories ($4.5B). Each state will receive $500 million plus additional funds based on its share of total jobless workers. A municipality’s allocation is based largely on its population and poverty, and a county’s on population. Funds are to be used to respond to COVID-19 emergency and economic effects (e.g., aid to families, businesses, nonprofits etc.), address revenue shortfalls, increase pay for essential workers and invest in water, sewer and broadband infrastructure. More guidance from the U.S. Treasury is forthcoming

All sectors – business, government, philanthropy and nonprofit – have a stake in supporting Georgia’s implementation of the American Rescue Plan and funding from the previous stimulus packages with a racial equity approach to ensure aid reaches those who need help paying rent, feeding their children, experienced lost learning time, lack healthcare, struggle with mental health conditions and more.

For more details check out these American Rescue Act resources:
National Conference of State Legislatures
Center on Budget and Policy Priorities
National Academy for State Health Policy
Voices for Georgia’s Children
Where to prioritize rental assistance by census tract