Great Lakes Wire

The $1.9 trillion COVID-19 stimulus package has passed both the U.S. Senate and the U.S. House of Representatives, and President Joe Biden is expected to sign it before the week is over.

Bridge Michigan reviewed the American Rescue Plan Act of 2021 and detailed what it could mean for Michigan residents.

The plan will attempt to revitalize the nation’s economy, which has been battered by the effects of the COVID-19 pandemic. It will focus on providing financial assistance for those at the lower end of the economic scale, with benefits including extending unemployment payments and providing protections for lower-wage workers.

Individuals earning an annual wage of $75,000 or less and couples earring up to $150,000 will receive stimulus payments in the amount of $1,400. Individuals earning higher wages than those thresholds will receive payments as well, but in smaller amounts. Families with children will also receive a significant tax credit of up to $3,600 per child.

The wide-reaching benefits could help 90% of Michigan’s children under 18, reported Bridge Michigan.

The plan is expected to stimulate job growth nationwide. Biden said that he expects the plan to create approximately 6 million new jobs across the country and add $1 trillion to the Gross Domestic Product.

Under the new plan, jobless workers will continue to receive an extra $300 in unemployment benefits per week through Saturday, Sept. 4, and will also be exempt from paying federal income tax on their first $10,200 in payments from 2020. 

People who purchase health insurance through the Affordable Care Act will have their premiums capped at 8.5% of their annual income for the next two years. Coverage also will be expanded to include people earning more than four times the federal poverty rate, which is $51,040 for individuals and $108,400 for a family of four.

A sum of $3.8 billion from the COVID-19 relief package has been allocated to Michigan’s schools to supplement school budgets and offset pandemic-related costs.

Under the plan, at least 20% of school funds must be used to make up for learning losses due to remote learning. School officials are discussing solutions including expanded summer school, adding more days to the school year, lengthening school days and hiring additional tutoring staff.

The plan includes $40 billion for higher education across the country, which will benefit Michigan colleges and universities.

Michigan’s state and local governments will receive a share of the $350 billion allocated to help state and local governments across the country. Officials estimate that $10 billion will be coming to Michigan and will be used to replenish the state's depleted Unemployment Trust Fund and help communities suffering significant losses in income tax revenue.

Specific industries that have been hit particularly hard by the effects of the pandemic -- including airlines, entertainment venues, bars and restaurants -- will be receiving direct aid.