The U.S. House of Representatives on Wednesday passed a $1.9 trillion coronavirus relief bill, sending the second largest stimulus package in United States' history to President Joe Biden to sign. Biden signed the bill, known as the American Rescue Plan Act of 2021, into law Thursday afternoon, setting up relief measures to process as quickly as possible to help support the slowly recovering economy as the coronavirus vaccine rolls out.
House Democrats passed the bill by a margin of 220-211, without a Republican vote. This was similar to the passage of the bill in the Senate over the weekend, which passed along political party lines. Republicans argue against additional relief measures at this time, reasoning that the job market has begun to recover enough to make new stimulus spending unnecessary. Democrats argue that more relief is needed to maintain the economy's upward trends.
"This historic legislation is about rebuilding the backbone of this country," Biden told White House reporters before signing the bill, quoted by CNBC. "And giving people in this nation, working people, middle class folks, the people who built this county, a fighting chance."
One of the most anticipated parts of the bill is the $1,400 direct stimulus payments to most Americans, something the White House plans to begin sending out to bank account as soon as this weekend. This time around, the income cap for individuals was set at $80,000, with the amount phasing out beyond $75,000. The cap for joint filers is double, with the federal government basing eligibility on the individuals most recent tax return.
The package also expands the child tax credit for one year and increases direct stimulus payments for dependants to $3,600 for children under 6 and $3,000 for those between the ages of 6 and 17, with payments on a per child basis. Additionally, this new stimulus package allows for aid for adult dependents for the first time; past coronavirus relief packages did not send direct aid for adult dependents aged 18 or older, which includes college students, as well as elderly and disabled adults.
The plan also extends the $300 per week jobless aid supplement and other programs for long-term unemployment insurance until September 6. This time around, the package also makes an individual's first $10,200 in unemployment aid tax free, which will help do away with surprise tax bills for many of the jobless.
Other aid for individuals and small businesses includes $22 billion for Paycheck Protection Program loans, $25 billion in rental assistance and nearly $10 billion for mortgage aid, and about $30 billion in aid for restaurants. The plan also increases the Supplemental Nutrition Assistance Program's benefits by about 15% through September, and includes other provisions to make access to affordable health insurance easier.
The legislation also outlines various measures in state and local government aid, including $350 billion in direct relief funding and $120 billion for public K-12 schools. The plan also allows for $80 billion for coronavirus vaccine manufacturing and distribution, as well as for testing and contact tracing programs.