Last Thursday, President Biden signed into law the American Rescue Plan. This is the fancy name for what has been referred to as the “$1.9 trillion stimulus bill”. What are the main provisions of this bill and when could you see your next stimulus check? In this post we will discuss the main provisions of the bill, who can expect to receive additional stimulus checks, and when they can expect those checks to hit their accounts.
The main question everyone asks is, “How much am I getting?”. For individuals with an Adjusted Gross Income (AGI) of less than $75,000, you will receive a direct payment of $1,400. This number jumps to $2,800 for married couples with an AGI of less than $150,000. For individuals with an AGI of $80,000 or more ($160,000 for married couples), you will not receive any direct payments under this latest bill. According to White House staff, stimulus checks should start going out as soon as March 13th.
The American Rescue Plan extended the existing $300 weekly unemployment benefit through September 6th. The bill also provides a tax break of up to $10,000 in unemployment benefits. The bill was signed just in time as the federal unemployment programs were set to expire in the coming week.
Not only did the bill provide for added stimulus payments to individuals, but it also expanded the child tax credit. Before passing the bill, the child tax credit was capped at $2,000 per year for every child under the age of 16. The new relief bill expands this tax credit to $3,000 per child ages 6 to 17, and $3,600 for each child under 6.
Other major provisions in this bill include $350 billion in aid to state and local governments, additional money allocated to COVID-19 testing and vaccines, and $170 billion in aid to help K-12 schools and colleges reopen safely.
Congress passes another much-debated stimulus bill. Sound familiar? Over the past year, the federal government has had its hands full battling the COVID-19 pandemic. This marks the third stimulus-related bill passed over the last year and will provide some much-needed relief as we put this pandemic behind us. We will continue to monitor the goings-on in our nation’s capital and how they may impact you.