The U.S. economy is about to get stimulated to the tune of $1.9 trillion, as the U.S. government is expected to add this amount to the federal debt. Millions of Americans will probably receive $1,400 in their bank accounts as early as next week and no later than the close of this month.
The latest version of the American Rescue Plan (H.R. 1319) passed the U.S. Senate over the weekend, and we expect a completed version to pass the U.S. House today, March 10, 2021 for President Biden’s signature. Costing U.S. taxpayers $5,800 per capita, many will only see $1,400 while another select few (freelancers, “gig” workers, etc) will receive an additional $300 per week from federal taxpayers through September 6, 2021. This is besides any state unemployment benefits citizens may be receiving. The federal government has been spending $8 trillion per year with incoming revenue at only $3.2 trillion, and that is before this legislation passes.
The plan would give $350 billion to states and communities while offering the wide latitude in how that money is spent. $130 billion is being allocated to school districts to help defray the costs of getting students back in physical seats at the school as opposed to virtual learning. Those costs include changing classrooms for fewer students per room, installation of new ventilation systems, etc. Under the Senate version just passed, it would cover COBRA health insurance plans 100% by U.S. taxpayers. The bill calls for an additional $46 billion to be spent on vaccinations, tracing of Americans, mobile testing, and other COVID-19 related expenses.
Another big change, if passed, the bill would allow childless taxpayers to take the Earned Income Tax Credit for this year’s earnings, which could amount to $543 to $1,502 depending upon one’s income and filing status. Another $30 billion would go to low-income households and the unemployed pay for their rent and utilities.