President Biden Signs the American Rescue Plan of 2021
[UPDATE: On Thursday, March 11, 2021, President Biden signed into law: H.R. 1319, the “American Rescue Plan Act of 2021,” which provides additional relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses.
On March 10, 2021, the House and Senate both passed the revised American Rescue Plan and the final bill moved to President Biden’s desk for signature.]
Original Post: On Saturday, March 6, 2021, The U.S. Senate passed an amended version of pandemic relief legislation, clearing the $1.9 trillion bill to return to the House for passage after approving several tax provisions. For a detailed list of the provisions in the original house bill, check out our blog here.
The Senate voted 50 to 49 to approve the American Rescue Plan, or H.R. 1319. The bill provides $1,400 economic stimulus payments for individuals, enhanced tax credits for working families, tax incentives for businesses and their employees, emergency loans to small businesses, and help for financially troubled pension plans. The Senate bill keeps provisions that allow certain Americans to qualify for premium tax credits for health insurance, extend federal jobless benefits to the fall, and expands child tax credits. It provides funding for a national vaccination plan, safely reopening schools, and protecting frontline health care workers.
The plan extends the $300 per week jobless benefits through September 6, 2021 while providing tax relief on the first $10,200 in unemployment benefits for households making up to $150,000.
The $1,400 stimulus payments from the Internal Revenue Service would go to individuals with adjusted gross income of $75,000 or less and be phased out at the $80,000 income level. Couples with adjusted gross income of $150,000 would qualify for the checks, with a phase-out at $160,000.
The Senate bill would not allow the stimulus checks to go to nonresident alien individuals, estates or trusts, and certain dependents.
The increase of the federal minimum wage from $7.25 to $15.00 was completely removed from the bill.
Democrats voted down a number of Republican amendments including provisions that would have severely reduced the size of the relief bill.
The American Rescue Plan heads back to the house for a vote on the changes. A vote of approval will send the bill to President Biden’s desk. Stay tuned as we monitor the legislation for potential changes that could impact you. As always, please contact us if you have any questions or would like to talk to one of our COVID-19 Advisory Team members – we’re here to help.