Coronavirus Response, Human Services Funding
03/11/2021

Overview of the American Rescue Plan and Nonprofits

Our HSC Fellows took a deep dive into the American Rescue Plan, as well as to news and other sources, to identify all the elements of relevance to health and human services nonprofits in what could be the most consequential piece of legislation in a quarter century.

FUNDS THAT WILL DIRECTLY BENEFIT NONPROFITS

  • State/Local Aid
    • $350 billion to states, municipalities, etc. 
    • Columbus and Franklin County are cumulatively set to receive $441 million.
  • Paycheck Protection Program (PPP)
    • $7.25 billion additional dollars towards the Paycheck Protection Program (PPP), allowing larger nonprofits to qualify.
    • Importantly, the program will cease taking new applications on March 31, 2021. A bipartisan deal is still in the works in Congress to extend the deadline to the end of May.
  • EIDL
    • Another $15 billion will be funded here through the SBA for long-term, low-interest loans
  • Child Care Providers
    • $39 billion to child care providers to help them offset operating expenses and help families defray child care costs
  • Paid Leave
    • Reinstate paid sick and family benefits through September 30, 2021
    • Extend paid sick and family leave benefits to workers employed at businesses with 500+ employees
      • Also extend to employers with less than 50 employees
    • People who are sick/quarantining or caring for a child whose school is closed can receive 14 weeks of paid leave
      • Federal government will reimburse employers with fewer than 500 employees, as well as state and local governments, for the full cost of providing the leave by extending the refundable tax credit 

FUNDS DIRECTLY TO BENEFIT INDIVIDUALS OF IMPORTANCE TO NONPROFITS

  • Direct Payments to Individuals
    • The stimulus payments will be $1,400 for most recipients. Those who are eligible will also receive an identical payment for each of their children.
    • To qualify for the full $1,400, a single person must have an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income must be $112,500 or below, and for married couples filing jointly that number has to be $150,000 or below.
    • To be eligible for a payment, a person must have a Social Security number.
  • Unemployment Aid
    • Extension to the federal unemployment aid programs through September 6th, 2021, affecting those participating in the Pandemic Emergency Unemployment Compensation
    • Program and the Pandemic Unemployment Assistance Program.
    • Payments will be $300 per week 
  • Housing, Rental, and Utility Assistance
    • $27.4 billion in rental assistance, on top of $25 billion from the December 2020 stimulus package. 
      • This includes $5 billion for emergency housing vouchers to help people find stable housing
    • $5 billion specifically for utility payment assistance
    • $10 billion in homeowner assistance for mortgage payments, utility bills, and other housing costs
    • $100 million for housing counseling
    • $5 billion for homelessness assistance, including funds to conversion of properties like motels into shelters
    • $4.5 billion for LIHEAP
  • Food Insecurity
    • $1.15 billion to extend food stamp benefits through September 2021.
    • $880 million for WIC
    • $1.4 billion for programs authorized under the Older Americans Act, including support for nutrition programs
    • $5 billion to maintain and expand the P-EBT program

TAX CREDIT BENEFITS

  • Child Tax Credit
    • Child Tax Credit increased to $3,600 for children under 6 and $3,000 for children ages 6 to 17. This is up from $2,000 per child.
    • The expanded credit will phase out for individuals making more than $75,000, and married couples earning more than $150,000
    • The CTC will be fully refundable
  • Child and Dependent Care Tax Credit
    • The tax credit for child and dependent care would increase for 2021 from a maximum of $1,050 for one child and $2,100 for two or more children to $4,000 and $8,000.
    • The credit would also be fully refundable.
  • Earned Income Tax Credit Expansion
    • This is nearly tripled for low-income workers, and extends eligibility to more people

PUBLIC HEALTH

  • Vaccine and Covid-Specific Funds
    • $7.5 billion to fund vaccination efforts
    • $46 billion toward diagnosing and tracing Covid infections
    • $2 billion for Covid testing supplies and distribution, as well as PPE
  • Medicaid and Health Insurance
    • Funding increases here include subsidies for premiums for ACA policies to full premium subsidies for laid-off workers currently on COBRA coverage through employer health insurance plans. Medicaid matching funds are also increased to provide an incentive for states that have not yet expanded coverage to low-income adults.