The American Rescue Plan

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Have you received your COVID vaccine yet? Have you gotten your economic stimulus check? Here are some details of the American Rescue Plan legislation, which passed into law thanks to the Democratic majorities in the House and Senate:

  • DIRECT PAYMENTS TO 85% OF HOUSEHOLDS: ARP will send checks of up to $1400 per person to 85% of American households – the single largest direct payment to date. A low- or middle-income  family of four will get $5,600 in direct checks. 
  • INVESTMENT IN VACCINE DISTRIBUTION: ARP will allocate $20 billion for vaccine distribution, including $1 billion for the CDC to launch a vaccine awareness and engagement campaign and $7.5 billion to set up vaccination sites across the country.  
  • UNEMPLOYMENT EXTENDED THROUGH SEPTEMBER: ARP extends enhanced unemployment insurance for around 11 million Americans who would otherwise start losing benefits next week – and protects them from surprise tax bills. 
  • TENS OF BILLIONS OF DOLLARS FOR RENTERS, HOMEOWNERS: ARP extends tens of billions of dollars in rental and homeowners assistance that will benefit lower-income, disproportionately Black and Brown, renters and homeowners. 
  • $39 BILLION FOR CHILD CARE PROVIDERS: ARP helps working and middle-class families struggling to juggle child care and work by providing money to reopen schools safely and get vaccines in arms, so kids and teachers can safely return to school and parents can go back to work. This includes the most significant investment in American child care since World War II. 
  • 66 MILLION KIDS WILL BENEFIT FROM CHILD TAX CREDIT: ARP lifts 11 million people out of poverty and cuts child poverty in half, including through a historic expansion of the child tax credit that will benefit 66 million kids across our country. 
  • EITC EXPANDED TO 17 MILLION WORKERS: ARP expands the Earned Income Tax Credit to 17 million low-income workers.
  • HEALTH INSURANCE PREMIUMS LOWERED, 100% OF COBRA PREMIUMS COVERED FOR LAID-OFF WORKERS: Significantly reduces health insurance premiums for millions of American families. A family of four making $90,000 could see their monthly premium come down by $200 per month.

Specific to Washington State:

  • Since the pandemic began, more than 345,000 people have been infected with COVID-19 and more than 5,000 people have died.
  • The unemployment rate is 6.3%, up from 4.1% before the pandemic.
  • Since February 2020, more than 208,000 fewer people are employed.
  • 413,000 adults – 8% of all adults in the state – report not having enoughfood to eat. This includes 219,000 adults living with children, or 11% of all adults living with children, who report that the children in their household do not have enough to eat.
  • An estimated 228,000 renters or 12% of renters are not caught up on rent.
  • An estimated 1.4 million adults or 26% of all adults statewide report havingdifficulty covering normal household expenses.
  • The Effect of the American Rescue Plan on Washington State:
    • $4.5 billion in state fiscal relief
    • $2.7 billion in local fiscal relief
    • More than $1.8 billion in relief for K-12 schools
    • Economic impact payments of up to $1,400 per person (above the $600 perperson provided in December) for more than 4.4 million adults and 1.6 million children. This is 80% of all adults in the state and 77% of all children in the state.
    • Additional relief of up to $1,600 per child through the Child Tax Credit to the families of 1.4 million children, lifting 66,000 children out of poverty
    • Additional relief of up to nearly $1,000 through the Earned Income Tax Credit to 360,000 childless workers, including many in frontline jobs
    • Marketplace health insurance premiums that are $1,117 lower per month for a 60-year old couple earning $75,000 per year