The American Rescue Plan

On January 14, President Joe Biden provided an outline for his administration’s first major legislative effort.

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.