The Impact of the American Rescue Plan after One Year
The American Rescue Plan Act of 2021 is a $1.9 trillion coronavirus rescue plan aimed at assisting the US in recovering from the devastating economic and health repercussions of the COVID-19 pandemic. This economic rescue legislation is one of the most expensive in US history, costing approximately $2 trillion. It’s part of President Joe Biden’s Build Back Better initiative, which also includes the American Jobs Plan and the American Families Plan.
The USA is experiencing one of the strongest periods of economic growth, one year after President Biden signed the American Rescue Plan Act (ARP) into law. The American Rescue Plan, which was enacted during severe public health and economic crisis, has improved the lives of millions of Americans by expanding access to COVID-19 vaccines and testing, providing economic relief that has kept millions of children out of poverty, preventing evictions and foreclosures, and assisting small businesses in staying open. Under the American Rescue Plan, as well as other recovery programs approved by past law, the Treasury Department is proud to manage approximately $1 trillion in programs and tax credits.
The American Rescue Plan resulted in 4 million more jobs and nearly doubled GDP growth, according to a study. Its outcomes have also resulted in significant gains for low-income and minority populations in terms of child poverty, food insecurity, and unemployment.
New data reveal how the American Rescue Plan provided individuals, businesses, and governments with the resources they needed to weather the public health and economic crisis, and speed recovery. According to their official site, Treasury has also released new highlights showing the myriad ways that State and Local Fiscal Recovery Funds (SLFRF) are making a difference in communities across the country:
- SLFRF is being used by the majority of states, as well as approximately 800 cities and counties, to respond to the pandemic’s public health effects.
- Throughout the epidemic, ARP funds are assisting families, employees, businesses, and state, municipal, and tribal governments to weather economic hardships and emerge stronger.
- Eviction prevention and home stability are now a national priority because of ARP programs.
- As the country recovers, ARP investments are helping small businesses survive the epidemic while also fundamentally enhancing the climate for entrepreneurs, small enterprises, and community development.
- Treasury has also disbursed more than 170 million Economic Impact Payments totaling over $400 billion under the ARP.
- State, municipal, and tribal governments are also utilizing Fiscal Recovery Funds to address community needs such as unemployment assistance, job training, food banks, and food programs, childcare, education, and rent, mortgage, and utility assistance.
As part of broader government efforts, the Emergency Rental Assistance (ERA) programs have also played a vital role in preventing what many predicted would be an eviction tsunami following the CDC’s eviction moratorium’s expiration.