President Biden’s New Stimulus Package: How does it affect you?
President Biden signed a new $1.9 trillion COVID relief package into law on Thursday, March 11, 2021. A chunk of the bill is direct relief to individuals, including a third round of one-time payments, this time $1,400 to most Americans. Families also receive up to $3,600 as tax credit for each child. Those without children can also get Earned Income Tax Credit for 2021. Low-income individuals will receive more than $30 billion to help pay rent and mortgage. For the unemployed, a number of benefits like health care and weekly $300 payments are extended through September. Overall, these stimulus checks and unemployment benefits also indirectly help businesses by putting money in consumer’s pockets.
Additionally, the bill directly helps struggling small businesses. $28.6 billion in grants have been allocated towards restaurants whose revenue fell in 2020. Grants can match restaurants’ revenues losses, up to $10 million per company. $5 billion of the $28.6 billion is allocated for smaller restaurants with annual revenues less than $500,000. The bill also includes $10 billion to the State Small Business Credit Initiative and $7 billion to the Paycheck Protection Program, which aims to make getting loans and borrowing by small companies and non-profits easier.
Moreover, the bill allocates $130 billion to help schools for students in kindergarten through 12th grade and $40 billion to colleges and universities.
Finally, around $60 billion were set aside to fund coronavirus testing and vaccinations. Biden aims to have every adult in the United States vaccinated by May.