What’s in Biden’s Plan to Fight COVID?
President-elect Joe Biden has unveiled a host of COVID measures as part of a $ 1.9 trillion economic plan ahead of taking office next week – which includes a new round of emergency checks, increased unemployment assistance and a rise in the minimum wage. Here is a summary of the plan.
Billed as the American Rescue Plan, the package includes funding for vaccinations, state and local governments, and $ 1 trillion in direct financial aid to Americans. It is not certain that all of these measures will continue as long as they pass through Congress, but here is the direct relief plan as it stands:
- Round 3 of Aid Checks: The plan is to issue $ 1,400 checks for “eligible” recipients (presumably based on similar income thresholds used for previous checks), for a total of $ 2,000 with $ 600 checks now sent. The plan also expands eligibility for preferential screening for adult dependents and all mixed-status households in which one of the household members is not a citizen.
- Additional Unemployment Assistance: Weekly unemployment checks will include a $ 400 top-up from federal funds as the plan increases the existing $ 300 subsidy by an additional $ 100. The President-elect also proposes to extend these extended unemployment benefits until September 2021.
- Rental Assistance: An additional $ 25 billion in rental assistance will be provided to low-income households that lost their jobs during the pandemic. These funds will increase the rental assistance currently available by $ 25 billion. Another $ 5 billion has been given to people struggling to pay overdue utility bills.
- Extended moratorium on evictions: As expected, the plan extends the federal moratorium on evictions until September 30 (it currently expires on January 31). There is also some relief for people with government-guaranteed mortgages as they will also be able to apply for a deferred payment until September 30th.
- $ 15 Hourly Minimum Wage : The current federal minimum wage is $ 7.25 an hour and will be raised to $ 15 an hour under Biden’s plan, which also provides for an end to the tipped minimum wage (currently 2, $ 13 an hour for people earning at least $ 30 a month in tips) and below the minimum wage for people with disabilities. The last time the minimum wage was raised was in 2009.
- More money for childcare: Biden wants to create a $ 25 billion “Emergency Stabilization Fund” for childcare providers to help pay rent, utilities, wages and COVID prevention costs. An additional $ 15 billion will be added to existing grant programs. Biden also wants to increase the child tax credit to $ 3,000 from $ 2,000 for each child age 17 and under. Children under the age of six will be eligible for $ 3,600.
- Health Care: To help people who have lost employee-sponsored health insurance, Biden wants to expand the Affordable Care Act premium subsidies so that members don’t pay more than 8.5% of their income for coverage. The plan also provides $ 20 billion in health care for veterans, as well as $ 4 billion in funding for mental health and drug addiction services.
- Emergency Paid Leave Restoration: The plan will reinstate recently expired paid sick leave and family leave to September 30, and close some loopholes so more people (including federal employees) can apply for it. People who are out of work for COVID-related reasons will receive 14 weeks of paid leave. The federal government will reimburse employers with fewer than 500 employees for the full cost of the vacation.
- Food Aid: The plan provides $ 3 billion to help women, babies and children get food, and $ 1 billion in nutritional assistance to the United States territories. The 15% increase in food stamp benefits, which expires in June, will be extended to September.