Where did the American Rescue Plan money go?

The ARP gave families, businesses, and governments the resources needed to weather the economic crisis – and accelerate the recovery. As the recovery strengthened throughout 2021, millions more workers have found jobs and seen their wages rise.

Who benefited from the American Rescue Plan Act?

The American Rescue Plan will lower or eliminate health insurance premiums for millions of lower- and middle-income families enrolled in health insurance marketplaces. This will help well over a million uninsured Americans gain coverage.

Do ARPA funds have to be paid back?

If a municipality has not obligated its ARPA SLFRF funds by the end of 2024, they will have to return the funds to Treasury.

What were the results of the American Rescue Plan?

Child Poverty nearly cut in half to lowest rate – 5.2% – ever. Black child poverty cut by 52%, Hispanic child poverty cut by 43%, Native American child poverty cut by 51%, and dramatic drops in white and Asian child poverty — all to record lows. ~9 million children in rural areas benefited from the expanded credit.

What is ARPA money supposed to be used for?

The funding provided under ARPA provides a unique opportunity for state and local governments to make strategic investments in long-lived assets, rebuild reserves to enhance financial stability, and cover temporary operating shortfalls until economic conditions and operations normalize.

Overview of the American Rescue Plan Act

Who received American Rescue Plan funds?

The American Rescue Plan provides $1.9 billion in funding to LA County to build an equitable economic recovery from the devastating economic effects caused by the COVID-19 pandemic.

Is ARPA money federal or state?

The American Rescue Plan Act was signed into law by President Biden on March 11, 2021, it guaranteed direct funding to all cities, towns and villages in the United States. The U.S. Department of the Treasury responsible for overseeing the program.

What is the negative impact of the American Rescue Plan?

A study from the American Enterprise Institute found that the American Rescue Plan failed to create any of the 4 million new jobs Democrats promised. In fact, it was quite the opposite. Approximately 1.8 million Americans reportedly turned down a job because of the extended unemployment bonuses that were included.

What would have happened without the American Rescue Plan?

New analysis from Moody's found that for 2021, the American Rescue Plan resulted in 4 million more jobs and nearly doubled GDP growth. Moody's finds that without the American Rescue Plan, unemployment would have risen in summer 2021 to back over 7% and remain materially higher after that.

Is American Rescue Plan legit?

The American Rescue Plan makes it much easier for federal workers diagnosed with COVID-19 to establish coverage under the Federal Employees' Compensation Act. To establish a COVID-19 claim, you simply need to establish that you are a covered employee.

How long do you have to spend ARPA funds?

There is no deadline to spend the ARPA funds.

How long are ARPA funds good for?

Territories will receive a total of $4.5 billion in a single payment. Recipients must obligate the funds by Dec. 31, 2024, and spend them by Dec. 31, 2026.

What is the American Rescue Plan 2024?

This new law provides the largest amount of direct federal aid ever to local governments. A total of $130.2 billion will be provided to cities and counties to use through December 31, 2024. The program will be administered by the U.S. Treasury Department.

How are ARPA funds distributed?

To access these funds, cities and towns submitted requests to the state and provided information outlined in the Treasury guidance. Pursuant to the American Rescue Plan Act of 2021, the amount distributed to these entities were capped at 75 percent of the entity's operating budget as of January 27, 2020.

Is the government giving out money?

The government does not offer free money or grants to people for personal needs.

Is everyone getting a $1,400 stimulus check?

The American Rescue Plan was signed into law on March 11, authorizing a third round of stimulus checks that pay a maximum of $1,400 for millions of Americans. Targeted income limits, however, exclude individuals earning over $80,000 and joint tax filers making more than $160,000.

How much does the American Rescue Plan Act spend?

States will receive a total of $195.3 billion in aid, of which $25.5 billion will be split evenly between states and the District of Columbia. Tribal governments will receive $20 billion in payments and U.S. territories will receive $4.5 billion in payments.

How does the American Rescue Plan affect Obamacare?

As shown in our earlier analysis, the ARPA lowers premiums not just for people who are newly eligible for financial assistance (those with incomes over 400% of poverty), but also for people who were already eligible for subsidies under the ACA and are now eligible for more significant financial assistance.

Why was the American Rescue Plan necessary?

One year after the passage of American Rescue Plan (ARP), new data show how ARP gave families, businesses, and governments the resources needed to weather the public health and economic crisis, accelerate the recovery, and build a stronger foundation for the future.

How does the American Rescue Plan affect unemployment?

The American Rescue Plan extended employment assistance, starting in March 2021, and waived some federal taxes on unemployment benefits to assist those who lost work due to the COVID-19 crisis.

How does the American Rescue Plan affect education?

It set aside nearly $170 billion for public schools—the School Rescue Funds. It is the single largest-ever investment in education funding. But the American Rescue Plan went far beyond assigning dollar amounts. It reaffirmed Biden's belief that educators and parents are the experts on what students need to succeed.

Can ARPA funds be used for wages?

operational needs etc. workers, recipients can use funds to cover the full payroll and covered benefits costs for employees or operating units or divisions primarily dedicated to the COVID-19 response.

Was PPP part of ARPA?

Extension of the PPP

ARPA did not extend the PPP beyond its current expiration of March 31, 2021, but it added $7.25 billion to the program and expanded eligibility to participate in it.

What is the difference between ARPA and ARRA?

Notes: ARPA = the American Rescue Plan Act of 2021; ARRA = the American Recovery and Reinvestment Act of 2009.