US President Joe Biden has announced a $1.9 trillion Coronavirus relief package recently. Biden’s $1.9 trillion COVID Relief combats on tackling the economic fallout from the COVID-19 pandemic. The plan includes:
- Weekly additional unemployment assistance would be increased from USD 300 to USD 400.
- Increase in the federal minimum wage wage to USD 15 an hour over time
- USD 20 billion is set aside for the national vaccination programme
- USD 50 billion to scale up Coronavirus testing such as purchasing rapid tests, regular testing for schools and local governments, and increasing lab capacity.
- USD 10 billion for increasing domestic manufacturing of pandemic supplies.
- USD 30 billion for the federal Disaster Relief Fund to make sure the United States has sufficient supplies and protective gear and for providing 100% federal reimbursement for the state and local governments and tribes.
Let’s discuss everything about the Biden’s $1.9 trillion COVID Relief in-depth:
Enhanced Unemployment Aid
The jobless would receive $400 a week from the $300 weekly enhancement contained in Congress’ relief package from December.
This applies to those,
- Who have exhausted their regular state jobless payments in the Pandemic Emergency Unemployment Compensation Program.
- In the Pandemic Unemployment Assistance program that provides benefits for the self-employed, gig workers, independent contractors, and few others affected by the pandemic.
Rental Assistance and Eviction Moratorium
Who Will Benefit from the Plan?
- Low and moderate income households who have lost their jobs during the pandemic would get $25 billion in rental assistance. This is in addition to the $25 billion provided by the lawmakers in December.
- The renters who are struggling to pay their utility bills would also be beneficial as another $5 billion is set aside to help struggling households. Biden is calling for another $5 billion to the households that are at the risk of experiencing homelessness.
Help the Needy
- Instead of having the food stamp benefits to expire in June, Biden would extend the 15% increase in the benefits through September.
- $3 billion is set aside for helping infants, children and women secure food. $1 billion would be given to US territories in nutrition assistance programs.
- He partners with American restaurants to provide food to needy and jobs to restaurant workers.
Child Care and Child Tax Credits
- He wants to create a $25 billion emergency fund and also to add $15 billion to an existing grant program. This would help child care providers to take care of the children, pay for rent & utilities.
- Child care tax credits would also be expanded for one year.
Increase of Tax Credits
These are aimed to support low-income families and the essential workers.
- The Child Tax Credits would be boosted to $3, 600 for children below the age of 6 and to $3,000 for children between the age of 6 and 17 for a year. He also mentioned that this credit would also be made fully refundable.
- Maximum Earned Income Tax Credit would be raised for a year.
Health Insurance Premiums
- He would increase and expand the Affordable Care Act’s premium subsidies.
- He wants the Congress to offer $4 billion for mental health and substance use disorder services and $20 billion for the health care needs of veterans.
To Help Small Businesses
The plan offers $15 billion to create a new grant program for small business owners.
This plan proposes making a $35 billion investment in some state, local, and non-profit financing programs that offer low-investment loans and provide venture capital to entrepreneurs.
These are the important points about Joe Biden’s $1.9 trillion COVID Relief.
Other than these,
- He wants to offer $350 billion to local, state, and territorial governments so that they would retain their frontline workers, increase testing, distribute testing, reopen schools and provide necessary services.
- He would invest $20 billion in a national vaccination program and would increase federal support to vaccinate Medicaid enrollees.
- According to the plan, he wants to raise the minimum wage to $15 an hour.
In a televised address from his hometown, Wilmington, he said, “It is not hard to see that we are in the middle of a once-in-several generation economic crisis within a once-in-several generation public health crisis. A crisis of deep human suffering in plain sight. And there is no time to wait.”
There have been around 23,308,700 people hit with the Coronavirus and nearly 400,000 Americans have lost their lives and many have also lost their jobs.
It is important to note that still around 18 million people are relying on unemployment insurance and more 400,000 small businesses have permanently shut down.
While announcing the details of the American Rescue Plan, he also mentioned that this plan can tackle the pandemic by helping American who need the most direct financial assistance and relief.
“As we work to keep people from going hungry, we will also work to keep a roof over their heads to stem the growing housing crisis in America. Approximately 14 million Americans have fallen behind on rent, many at risk of eviction” Biden explained.