15 Things You Need to Know About the Next Stimulus Package

Joe Biden is entering office with many policy goals he hopes to accomplish within the first 100 days of his administration. One of the 46th president's first priorities is the passage of another coronavirus relief bill, called the American Rescue Plan.

The plan would come at a cost of $1.9 billion and would provide many different types of aid to struggling individuals and businesses. Here's what you need to know about President Biden's proposed stimulus bill.

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Americans have been hearing lots of talk about $2,000 checks, but the American Rescue Plan would authorize just a $1,400 payment.

The confusion over the amount comes from the fact that the $2,000 the Democrats were talking about is a total of $2,000 including the $600 checks authorized by the recent $900 billion relief bill that passed at the end of December.

The $1,400 would combine with the $600 most people have already received, for a total of $2,000 in aid provided across both stimulus bills.

ALSO READ: 3 Supercharged Stocks That Can Double Your $1,400 Stimulus Check

The unemployment rate remains very high during the pandemic. The American Rescue Plan would help the jobless by providing an extra $400 per week in unemployment benefits through the end of September.

The Biden plan thus makes more money available for a longer time period than the recent $900 billion relief bill, which offered just an extra $300 per week through the middle of March.

Two key programs providing unemployment benefits to gig workers and to those who've exhausted benefits allowed by their states would also be extended through the end of September.

Biden's plan goes beyond the existing Paycheck Protection Program to provide more help to small businesses.

Specifically, up to $15 billion would be allocated to provide businesses with grants, and an additional $35 billion would be made available to government and nonprofit programs to offer low-interest government loans and venture capital funding.

Biden's plan expands the current Child Tax Credit, both by making it larger and by making more families eligible for it.

The current credit is worth up to $2,000 for eligible dependents, and $1,400 of it is refundable. The American Rescue Plan would raise the amount to $3,600 per year for children under 6 and $3,000 per year for older children. And the full amount would be refundable for one year.

ALSO READ: Your 2021 Guide to Tax Credits

Existing federal moratoriums on eviction and foreclosure would be extended through the end of September. These protections are currently set to expire at the end of January.

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In addition to suspending evictions, Biden's plan would also provide $25 billion in rental assistance for jobless Americans with low and moderate incomes. An additional $5 billion would be made available for those who need help covering utility bills.

The federal minimum wage is $7.25 per hour. The American Rescue Plan would increase that amount to $15 per hour.

The Biden administration is also urging Congress to end both the tipped minimum wage and a law allowing those who hire some disabled workers to pay below minimum wage.

ALSO READ: Restaurant Recession Looms With Coming Wave of Minimum Wage Hikes

The previous $900 billion COVID-19 relief bill left out aid to state, local, and tribal governments due to Republican objections. Biden's plan would provide $350 billion in aid.

K-12 schools, colleges, and universities would be provided with $170 billion to facilitate safe reopening or the development of remote learning programs.

To aid in the vaccine effort, the American Rescue Plan would authorize $20 billion for the creation of a national vaccination program. This would, among other things, fund community vaccination centers and mobile centers to provide shots in remote areas.

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Another $50 billion would go toward expanding coronavirus testing, with the money used to help schools implement routine test administration, as well as increase testing capacity and facilitate the purchase of rapid tests.

ALSO READ: 3 Fantastic Coronavirus Vaccine Stocks to Buy Right Now

Past COVID-19 relief bills authorized a 15% increase in the amount of money provided by the Supplemental Nutrition Assistance Program (SNAP). However, this is expected to end in June.

The Biden administration would extend the boost in benefits through September, as well as provide more money to the Women, Infants, and Children (WIC) program.

The American Rescue Plan would add $15 billion into an existing grant program aimed at helping child care providers cover added costs resulting from COVID-19. It would also create a new $25 billion emergency fund to assist providers in paying the bills when rising coronavirus cases result in shutdowns.

Past coronavirus legislation provided paid sick leave and family leave, but those provisions expired at the end of December. The American Rescue Plan would extend the paid leave provisions through the end of September.

ALSO READ: Will the Next Stimulus Bill Include Paid Family Leave?

The Biden administration has indicated a desire to pass the next stimulus bill on a bipartisan basis.

However, it is possible that legislation could pass without Republican votes through a process called reconciliation. While a bill passed through reconciliation may need to be more narrow in scope and might not include every provision mentioned here, it does mean the possibility of a bill could still be on the table even if Republicans are unified in opposition.

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The new president and new Congress have both made clear that another stimulus check is a top priority. Americans can expect lawmakers to act swiftly, so keep focused on D.C. to watch the ongoing stimulus negotiations and find out exactly when you can expect your next stimulus check.

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