Key provisions of the American Rescue Plan Act (March 9, 2021)

Key provisions of the American Rescue Plan Act (March 9, 2021)

State and Local Aid

The funding must be distributed quickly, though it will not all be disbursed at one time. Treasury and states are given 60 days to distribute funds in the first tranche, with additional funds to be made available in 1 year, pending TBD conditions are met. Funding in ARPA can be used to combat COVID-19 and also cover revenue shortfalls, as well as investments in infrastructure. Costs must be incurred by December 31, 2024, to be eligible.

·         $195 billion for states and DC

·         $130 billion for local governments

·         $20 billion for tribal governments

·         $4.5 billion for territories 

Unemployment 

The extension and amount of Federal Pandemic Unemployment Compensation was a contentious issue that almost tanked the bill. In the end, the Senate agreed to keep the supplemental payments at their current level and extended the program by an additional week.

·         Federal supplemental UI: $300 per week through September 6, 2021 (were set to expire on March 14)

·         Pandemic Unemployment Assistance (PUA) extended to 79 weeks from 50, which aids workers who otherwise do not qualify for UI

·         Pandemic Emergency Unemployment Compensation extended to 53 weeks from 24 for workers who have exhausted all other benefits

·         COBRA premiums are subsidized at 100%

SBA-related Initiatives 

·         Restaurant Revitalization Fund established with $28.6 billion in funding for restaurants, caterers, food trucks, and bars

·         Economic Injury Disaster Loans (EIDL) receive an additional $15 billion

·         State-Small Business Credit Initiative (SSBCI) is revived with $10 billion in new funding, to be distributed by no later than September 30, 2030

·         501(c)(5) (unions), 501(c)(7) (social clubs), and 501(c)(8) (fraternal groups) are eligible for PPP loans, and the size of eligible 501(c)(3) groups has been increased to 500 employees; $7.5 billion in additional funding will be made available

Transportation

·         $30 billion in grants for transit agencies

·         $8 billion for airport authorities

·         $3 billion for aviation manufactures; payroll support program with retention requirements; cannot have used other assistance, such as PPP

Education

·         $40 billion for higher education

·         $123 billion for K-12

·         $135 million each for the National Endowment for the Arts and the National Endowment for the Humanities

Leave a Reply

Your email address will not be published. Required fields are marked *