Advocacy News – March 11, 2021
After eight weeks of debate and back and forth, the US House of Representatives yesterday voted to pass the American Rescue Plan. The bill is expected to be signed into law by President Biden later this week.
The $1.9 trillion COVID relief bill includes targeted aid dedicated specifically to the restaurant industry, new provisions for small businesses across other industries, an extension in the existing $300 weekly unemployment insurance (UI) benefits through Sept. 6, another round of stimulus checks to eligible Americans, more money for the Paycheck Protection Program and more.
The bill passed both chambers without a single Republican vote and they blasted it as a spending frenzy that goes far beyond coronavirus recovery.
The bill is slightly different than what President Biden proposed and was originally passed by the House. The bill approved by the House and sent to the President will do the following:
- Stimulus Checks: The legislation provides $1,400 stimulus checks for individuals making less than $75,000 a year.
- Paycheck Protection Plan (PPP): The bill includes $7.25 billion in new money for the small-business loan program known as PPP and would allow more nonprofits to apply, including those groups that engage in advocacy and some limited lobbying. It also allows larger nonprofits to be eligible.
- Unemployment Insurance (UI) Provisions:
- Pandemic Unemployment Assistance (PUA) – The legislation specifies PUA (unemployment insurance for individuals who normally do not qualify) is extended to September 6, 2021. The number of weeks an individual may receive PUA benefits is increased from 39 weeks (as established by the CARES Act) to 79 weeks.
- Pandemic Emergency Unemployment Compensation (PEUC) – The legislation extends PEUC (additional weeks of UI for individuals who have exhausted regular UI benefits) to September 6, 2021. The number of weeks an individual may receive PEUC benefits is increased from 13 weeks (as established by the CARES Act) to 53 weeks.
- Federal Pandemic Unemployment Assistance (FPUC) – The legislation extends FPUC to September 6, 2021. The federal $300 per week benefit will be applied to any state UI benefit the claimant receives. If a claimant is eligible for at least $1 of state UI benefits, s/he is eligible for the $300 in federal UI benefits.
- Extended Benefits (EB) – The legislation extends full federal funding of EB to September 6, 2021.
- Tax Relief for Individuals: The legislation specifies $10,200 of UI benefits received in 2020 will be tax-free for households earning less than $150,000 annually
- Short-Time Compensation (STC) – The legislation extends full federal funding for STC, or “WorkShare” in Michigan, to September 6, 2021.
- Reimbursing Employers: Under the bill, nonprofits (as well as state, local, and tribal governments( will receive 75% relief on their UI bills for benefits paid March 31, 2021, through September 6, 2021.
- UI Trust Funds: Under the bill, states that borrow from the federal government to replenish their UI trust funds will enjoy interest-free loans through September 6, 2021.
- Money for State, Local Governments: The legislation provides $350 billion for state, local, and tribal governments
- Money for Schools: The legislation provides $130 billion to K-12 schools.
- Rental Assistance: The bill provides $25 billion towards rental assistance.
- COVID Testing, Vaccines and More: The bill provides billions towards COVID-19 testing, contact tracing, vaccinations and more.
If you have questions about the American Rescue Plan, please contact us at info@michamber.com.