Battle Creek Times

Local Michigan communities may begin receiving financial aid through the $1.9 trillion American Rescue Plan Act of 2021 as early as mid-March, following approval from the U.S. House of Representatives and President Joe Biden.

The initiative, designed to assist unemployed workers and low-income families, is projected to help approximately 700,000 jobless workers and 2.1 million children under the age of 18 throughout the state, according to Bridge Michigan.

Approximately $10 billion will be allocated to the state of Michigan. The funds will be used to reload the Michigan Unemployment Trust Fund, which decreased to $500 million from $4.6 billion, as well as municipalities that experienced city income tax revenue losses. A $28.6 billion grant program will assist restaurants and bars that have suffered during the pandemic, and other industries such as road construction, airlines, event venues and child care assistance for federal employees will also be funded.

Michigan’s education system will receive $3.8 billion from the relief package, in addition to the $2.5 it was already given in 2020. Low-income districts will receive higher financial assistance. Higher-education institutions will be allocated $40 billion nationwide, with at least 20% of the funds required to be invested in safety protocols and alterations. 

All residents making $75,000 or less, or married couples who earn up to $150,000, will receive a payment of $1,400, while residents earning up to $80,000, and couples earning up $160,000, will receive smaller amounts. Households with children will also receive additional tax credit incentives. In addition to the one-time payment, each household with a child will receive a tax credit of up to $3,600 per child.

“The economy remains down 9.5 million jobs from February 2020 and will require more than two years of job growth at February’s pace just to get back to pre-pandemic levels,” Cecilia Rouse, Chair of the Council of Economic Advisers, told Bridge Michigan.

The plan will also secure an extra $300 for unemployed workers until September. As of March 1, just under 860,000 people across the state were receiving benefits, with a prior $362 per week average. Additionally, unemployed people will not be required to pay federal income tax for the first $10,200 of their earnings for 2020.

President Biden estimates 6 million jobs will stem from the stimulus plan.

The Rescue Plan has also expanded the financial range for health care qualifications to include individuals who earn four times more than the national poverty rate, which would be $51,040 for individuals and $108,400 for a household of four for this year. For those who purchase health care through the Affordable Care Act, there will be a cap for premiums at 8.5% of income over the next two years. Additionally, workers who were laid off during the pandemic may qualify to remain on their previous employer’s health care plan.

While some economists worry the $1.9 trillion package may negatively impact the economy, others hope to adapt the tax structure for future use.