The American Rescue Plan

The $1.9 trillion American Rescue Plan includes multiple provisions that have been debated on Capitol Hill throughout 2020, including $350 billion for state and local governments, as well as an additional $1,400 in direct payments to individuals. 

President Biden made it clear that bi-partisan support for the plan is a priority, but also indicated the willingness to use the reconciliation process, lowering the bar to clear in the Senate from 60 votes to 51, should Republicans take a hardline stance against the plan. 

Notable provisions:

• $1,400 direct payments to individuals
• Expansion of child care credits
• Expansion of Earned Income Tax Credit (EITC) for adults with no children
• $350 billion for state and local governments
• $130 billion for reopening schools
• Extension of augmented Unemployment Insurance (UI) through September 2021
• Raise the minimum wage to $15 per hour
• $20 billion for public transit
• $1 billion for Temporary Assistance for Needy Families (TANF)
• Extend eviction relief and provide $30 billion

GFOA’s Federal Liaison Center will continue to monitor details of this bill as they develop.