Congressional summary of the $1.9 trillion “Covid” law plus cost breakdown

By CFACT Ed

Adjusted for today’s dollars the Second World War cost $4.1 trillion.  On March 11, 2021 the United States committed to spend nearly half of that.

American Rescue Plan Act of 2021

Signed into law 03/11/2021

Passed Senate 03/06/2021

Congressional Summary

This bill provides additional relief to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses.

Specifically, the bill provides funding for

• agriculture and nutrition programs, including the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program);
• schools and institutions of higher education;
• child care and programs for older Americans and their families;
• COVID-19 vaccinations, testing, treatment, and prevention;
• mental health and substance-use disorder services;
• emergency rental assistance, homeowner assistance, and other housing programs;
• payments to state, local, tribal, and territorial governments for economic relief;
• multiemployer pension plans;
• small business assistance, including specific programs for restaurants and live venues;
• programs for health care workers, transportation workers, federal employees, veterans, and other targeted populations;
• international and humanitarian responses;
• tribal government services;
• scientific research and development;
• state, territorial, and tribal capital projects that enable work, education, and health monitoring in response to COVID-19; and
• health care providers in rural areas.

The bill also includes provisions that

• extend unemployment benefits and related services;
• make up to $10,200 of 2020 unemployment compensation tax-free;
• make student loan forgiveness tax-free through 2025;
• provide a maximum recovery rebate of $1,400 per eligible individual;
• expand and otherwise modify certain tax credits, including the child tax credit and the earned income tax credit;
• provide premium assistance for certain health insurance coverage; and
• require coverage, without cost-sharing, of COVID-19 vaccines and treatment under Medicaid and the Children’s Health Insurance Program (CHIP).

Deficit Impact approximately $1.9 trillion

A breakdown of the deficit impact of the law compiled by the Committee For a Responsible Budget.  A few provisions were tweaked prior to passage such as the elimination of the $15 minimum wage by the Senate Parliamentarian.

Deficit impact, 2021-2031 Ways & Means $923 billion

Provide $1,400-per-person stimulus checks $422 billion Extend unemployment programs through August 29 with a $400/week supplement $246 billion. Expand Child Tax Credit, Child Care Tax Credit, and Earned Income Tax Credit mostly for one year $143 billion. Provide grants to multi-employer pension plans and change single-employer pension funding rules $58 billion. Temporarily expand ACA subsidies for two years and subsidize 2020 and 2021 coverage $45 billion. Extend paid sick leave and employee retention credit $14 billion. Subsidize COBRA coverage for laid-off workers *$8 billion. Repeal rule allowing multinational corporations to calculate their interest expenses including foreign subsidiaries – $22 billion. Other policies $9 billion.

Oversight & Reform $350 billion Provide money to state governments $195 billion. Provide money to local governments, territories, and tribes $155 billion. Create paid COVID leave for federal workers and other policies $0.4 billion.

Education & Labor $290 billion Provide funding for K-12 education$129 billion. Provide funding for colleges and universities $40 billion. Provide support for child care, grants to child care providers, and Head Start $40 billion. Subsidize COBRA coverage for laid-off workers *$10 billion. Extend nutrition assistance in place of school lunch for the duration of the emergency and other food assistance $7 billion. Human services, labor programs, and other policies *$11 billion.

Energy & Commerce $122 billion Increase funding for testing and contract tracing $50 billion. Increase public health workforce and investments $19 billion. Fund vaccine distribution, confidence, and supply chains $16 billion. Increase Medicaid payments to states that newly expand Medicaid under the ACA $16 billion. Allow states to expand Medicaid coverage for prisoners close to release and for pregnant and postpartum women for 5 years $9 billion. Remove the cap limiting how much drug manufacturers must rebate to Medicaid for drugs that have increased quickly in price – $18 billion. Other policies *$31 billion.

Transportation & Infrastructure $90 billion Increase funding for the Disaster Relief Fund and cover funeral expenses related to COVID $47 billion. Provide grants to transit agencies $28 billion. Provide grants to airports and aviation manufacturers $11 billion. Provide grants to communities under economic stress $3 billion. Grants to Amtrak and other transportation-related spending $2 billion.

Financial Services $71 billion Provide emergency rental assistance and assist homeless $30 billion. Provide grants to airlines and contractors to freeze airline layoffs through September $12 billion. Use Defense Production Act to buy and distribute medical supplies $10 billion. Provide mortgage payment assistance$10 billion. Reauthorize and fund the State Small Business Credit Initiative $9 billion.

Small Business $50 billion Provide grants to restaurants and bars that lost revenue due to the pandemic $25 billion. Provide additional EIDL Advance grants of up to $10,000 per business $15 billion. Allow more PPP loans and expand eligibility to certain non-profit and digital media companies $7 billion Other policies $3 billion

Veterans’ Affairs $17 billion Provide funding for health care services, facilities, and copays for veterans $16 billion. Fund job training assistance programs for veterans and other VA administrative costs $1 billion.

Agriculture $16 billion Increase nutrition assistance $6 billion. Pay off loans and other programs for socially disadvantaged farmers $5 billion. Purchase and distribute food to needy individuals $4 billion. Testing and monitoring for COVID in rural communities and among animal populations $1 billion.

Foreign Affairs (no legislation reported yet) $10 billion

Natural Resources (no legislation reported yet) $1 billion

Science, Space, & Technology (no legislation reported yet) $1 billion

Total *$1.927 trillion