From child care to school reopenings, $1.9T COVID relief package gives a financial lift to America’s struggling families

While the sweeping $1.9 trillion American Rescue Plan offers something for almost everyone affected by the COVID-19 pandemic – from the unemployed to small businesses to teetering cities and states – America’s families stand out as the biggest winners and are poised to benefit in myriad ways.Some of the law’s provisions, such as an expanded child tax credit, already have gotten much attention. But the measure also provides funding for child care, reopening schools and remote learning, among other pillars of the social infrastructure that supports child-rearing.“This is a transformative bill for families,” says Katherine Gallagher, director of child care and early education at the Center for Law and Social Policy. “It’s a game-changer.”Of course, the ARP’s most popular provision — such as extended unemployment benefits, $1,400 direct payments to adults and each of their children, emergency rental assistance and health care subsidies — also support families, Gallagher says. But Democrats in Congress went out of their way to extend a helping hand to kids and families, particularly those in lower-income brackets hit hard by the pandemic.The child tax credit was increased from $2,000 per eligible child to $3,000, or $3,600 per child under 6. The credit begins to phase out for individuals earning more than $75,000 a year, or $150,000 for married couples filing jointly.Most significantly, the credit is refundable, meaning even low-income Americans with no, or little, income can receive the full allowance. The changes are expected to lift nearly 10 million children above, or closer to, the poverty line. While the expansion applies just for this year, Democrats have said they’ll seek to make it permanent.“This is such a poverty buster,” Gallagher says.Meanwhile, the child and dependent care tax credit, which helps defray child care expenses, was increased from up to $2100 to up to $4,000 for one child or $8,000 for two or more children. As with the child tax credit, it’s fully refundable so families with little or no income can still benefit. And families earning as much as $125,000 are eligible for the full credit, up from a $15,000 cap.A year of COVID, in charts: In the year of COVID-19, how much has the economy recovered and how far does it have to go?Yet the ARP includes a variety of other family-centered initiatives:► K-12 schools receive $125 billion to reopen safely. The money is intended to provide additional space for social distancing, catch-up classes that address pandemic-related losses and a safeguard against state and local budget cuts.► There’s $39 billion for child care, including $24 billion for financially stressed child care providers for personal protective equipment, rent and mortgage payments, labor costs and other expenses. Another $15 billion would help subsidize child care costs for eligible families, helping an estimated 875,000 children.► About 12 million public school children live in households without an Internet connection or distance-learning device. The bill provides $7.2 billion to the Federal Communications Commission to help schools and libraries ensure kids can participate in remote learning.COVID relief guide: Stimulus checks: Can I get a COVID relief payment for a spouse, relative who died?► Nearly $40 billion will go to colleges and universities, with half set aside for financial aid grants to students to help with college costs and expenses such as food, housing and health care.► As families cope with increased stress during the pandemic, the legislation provides $350 million for community-based child abuse prevention programs and services that address domestic violence.► A meal voucher program for 22 million children will be extended through the summer. The meals normally would be provided in schools that are now closed.


Source link