COVID-19 pandemic left many individuals homeless, jobless and penniless.
The governments of different nations began planning mitigation policies and the worst affected received help that could continue to keep their hearths burning. Such plans are being made by the states and the countries.
Recently, the American Rescue Plan Act was brought into effect by President Biden which would apply to all the states.
What is the American Rescue Plan Act?
The American Rescue Plan Act aims to rescue the American economy by bringing direct monetary relief to the citizens. It is a step towards beating the pandemic and smashing the impact of the virus on the American economy.
The plan will not just provide money to every individual but will bring around different benefits in terms of taxes and other facilities.
Who qualifies for the American Rescue Plan Act?
The cities can use this fund until 24th December 2024. The American Rescue Plan Act of 2022 will support the following organizations and the people benefitting from it:
- Individuals earning a certain amount annually will benefit from the plan with $1400.
- Immigration penalties are also eliminated for several programs.
- Food Banks and Community Partners benefit from it.
- SNAP benefit holders will receive 15% more through September 2021.
- Special supplements will come to women, infants, and children (WIC) and with the legislation cash value vouchers will also come up for vulnerable mothers and children.
- Funding will also go towards the nutrition of seniors and young children.
- The people who receive benefits under the Child and Adult Care Food Program are eligible for nutrition support.
- The education department is going to receive a boost as well as the Health and Human Services department.
- Childcare, Development Block Program, and Public Health Workforce will receive a boost from this plan.
- Research & Development, mental health, and substance abuse-related people will also benefit from the plan.
- Medicaid and Health Insurance programs received a boost too in this aspect.
- Cybersecurity, water-related assistance, CDC funding, and others will also receive a boost from here on. Even Medicaid will get a boost going forth.
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What are the application requirements?
Application requirements are wide and varied and differ from one to another.
Organization wise the application requirements will change from one to another.
- Applications need to have a DUNS number and must be registered with the System for Award Management (SAM: www.sam.gov).
- Your application should be also registered with Grant’s.gov.
- A-L submission to Grants.gov needs to be done by 12th August 2021 and in the applicant portal from 19th August to 25th August. M to Z submissions can be done on Grants.gov by 12th August 2021 and in the applicant portal from 27th August to 2nd September.
How to Apply for American Rescue Plan Act application?
To apply for the American Rescue Plan Act, here is what you need to do.
- The application for the Federal Domestic Assistance/Short Organization Form needs to go to Grants.gov.
- Complete the Grant Application Form through the Arts Endowment’s applicant portal.
- Enter the information about your organization in this segment.
- Next, you will need to fill out the application for Federal Domestic Assistance/Short Organizational Form.
- After submitting the form, you will get a confirmation message on the screen.
The benefits of the American Rescue Plan Act are different on the organizational level and the individual level and some of the benefits will include the following;
- Each person is supposed to draw a $1400 check.
- Singles making $75000 annually, household heads making $112,500 and married couples making $150,000 will get the stimulus checks.
- Those of these people who receive $80,000 will receive partial payments.
- The individuals having dependents will receive $1400 per individual including the college students and seniors within the family who are claimed dependents with them.
- The unemployment insurance will be extended.
- Under this extended unemployment benefit, unemployed individuals will receive an extra $300 atop the $400 regular benefits.
- Individuals with earnings less the $150,000 do not have to pay taxes for the first $10,200 received towards unemployment benefits. However, post this amount, the earnings will be taxable.
- Enhancing the child tax credit, earned income tax credit, and child and dependent care tax credit are some of the benefits one would derive from the offer.
- For those who do not have children, the earned income tax credit benefit will increase from $543 to $1502.
- For people who have children, the American Rescue Plan Act has increased the child tax credit from $2000 to $3000 for children above six. It is made $3600 for parents with children below 6 years and the age limit is raised for them from 16 to 17.
- Child and Dependent Care Tax Credit are increased to $4000 for one person and $8000 for two or more than two people.
- Small businesses will receive aid continuously in this regard.
With the help of the American Rescue Plan, small businesses can claim to take emergency grants and can also lend money from them.
- People will need to pay less health insurance policy premiums and will have a 100% COBRA subsidy from the Federal government.
- Lower and middle-income families will benefit from this reduction immensely.
- A family of four with a $90,000 annual income can be eligible to see a reduction in the monthly policy charges by $200.
- Through 1st September, the health coverage will come down and the subsidy will continue for those who have the risk to lose their jobs and their health policies.
- Housing relief is an essential benefit that can be availed of.
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FAQ (Frequently Asked Questions)
What can American Rescue Plan Act funds be used for?
The grant will come to different organizations and then it will move to the individuals hereon. The money is being sanctioned for every organization differently and thereby an individual can use the money in the aspect they received help for.
What does the American Rescue plan Act do?
The American Rescue Plan is aiming to promote the overall growth of the country that hit backstage during the COVID-19 pandemic lockdown executions.
How does the American Rescue Plan Act affect employers?
The American Rescue Plan will affect employees differently. Like childless couples will end up paying more taxes and individuals earning to a certain level will get to avail of financial assistance.
Who pays for the American Rescue Plan Act of 2022?
The Federal government including Biden-Harris-led states will benefit from it.
The government is employing the Rescue Plan to pull the country up once more financially. The pandemic did lead to a lot of life and monetary loss. This entire process is for replenishing such losses on every front.