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Explained: All you need to know about Joe Biden’s $1.9-trillion US stimulus bill
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Explained: All you need to know about Joe Biden’s $1.9-trillion US stimulus bill
Mar 11, 2021 6:52 AM

The Joe Biden government’s American Rescue Plan, which gained the US House’s stamp of approval on Wednesday covers a wide range of issues including COVID-19 relief measures and compensations, anti-poverty measures and childcare credit, among others.

Take a look at the key areas covered by the bill.

Stimulus check

The new bill aims to provide as many as 85 per cent of US households direct payments of $1,400 per person. Individuals earning less than $75,000 will be considered eligible for the relief amount. With regard to married couples, those making less than $150,000 collectively would receive $1,400 per person. Those earning more than the aforementioned income levels will receive lesser payments corresponding to their incomes. The benefit will be capped at $80,000 for individuals and $160,000 for married couples.

In a blog post on Wednesday, the White House said that the Treasury and IRS were working to start getting payments out this month.

COVID relief, vaccination

As much as $160 billion has been set aside for coronavirus vaccine and testing programmes. The amount will be used for endeavours that will help mitigate and ultimately stop the spread of the novel coronavirus. A national vaccine distribution programme that would provide free shots to all US residents, irrespective of immigration status, will be funded from this amount.

Additionally, the bill also looks to fund community vaccination centres and mobile units in remote locations.

Unemployment benefits

The unemployment benefit from the last relief bill which expires on Sunday was extended through September in this bill. Also, the bill makes a provision for tax relief on the first $10,200 in unemployment payments for workers who record a household earning of up to $150,000 a year.

Healthcare

There is $34.2 billion set aside to expand health care subsidies. This will be an expansion of the Affordable Care Act, also known as ‘Obamacare’, the first of its kind since the Act was passed in 2010. Moreover, the bill will help the unemployed keep their healthcare benefits and also extend additional funding to health programmes such as military veterans’ healthcare.

State aid

The bill has also provided $360 billion in aid for state, local and territorial governments to help manage issues arising due to higher costs and lower tax revenue, caused by the COVID-19 pandemic.

Child tax credit

As per Biden’s mammoth bill, the child tax credit has been expanded to $3,000 from $2,000 for children aged 6 to 17 years. For children aged 5 years and younger, the amount has been set at $3,600. Moreover, the bill has set aside $25 billion towards a stabilisation fund to create more child-care centres.

(Edited by : Abhishek Jha)

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