American Rescue Plan Act of 2021

Enacted: March 11, 2021

Total Package Size: $1.9 trillion

Overview

The American Rescue Plan Act was a major economic stimulus package signed into law to accelerate recovery from the economic and health effects of the COVID-19 pandemic. It provided direct financial assistance to individuals, expanded unemployment benefits, and allocated significant resources for vaccination programs, state and local governments, and schools.

Key Components

Economic Impact Payments

  • Third round of stimulus payments: $1,400 per individual
  • $1,400 per dependent (including adult dependents)
  • Full payment for individuals earning up to $75,000 ($150,000 for married couples)
  • Phased out completely for individuals earning above $80,000 ($160,000 for married couples)

Unemployment Benefits

  • Extended federal unemployment benefits through September 6, 2021
  • Additional $300 per week in federal unemployment benefits
  • Extended Pandemic Unemployment Assistance (PUA) for self-employed workers
  • Extended Pandemic Emergency Unemployment Compensation (PEUC)

Child Tax Credit Expansion

  • Increased credit amount to $3,600 for children under 6 and $3,000 for children 6-17
  • Made credit fully refundable
  • Provided advance monthly payments from July to December 2021
  • Higher income thresholds for phase-out

State and Local Government Support

  • $350 billion for state, local, and tribal governments
  • Resources for public health, education, and infrastructure
  • Support for essential workers

Vaccination and Public Health

  • $20 billion for national vaccination program
  • $50 billion for COVID-19 testing and contact tracing
  • Resources for public health departments

Eligibility

Eligibility varied by program component:

  • Economic Impact Payments: Based on 2019 or 2020 tax returns, with income thresholds
  • Unemployment Benefits: Workers receiving state or federal unemployment benefits
  • Child Tax Credit: Families with qualifying children, based on income

How to Apply

Most American Rescue Plan programs have closed, but some components may still be available:

  • Check with the IRS for any remaining Economic Impact Payment claims
  • File your 2021 tax return to claim the expanded Child Tax Credit
  • Contact your state unemployment office for any remaining benefits

Important Dates

  • March 11, 2021: American Rescue Plan signed into law
  • March 2021: Third round of Economic Impact Payments distributed
  • July 2021: Advance Child Tax Credit payments began
  • September 6, 2021: Extended unemployment benefits ended
  • December 2021: Final advance Child Tax Credit payment

Resources

Related Programs

Explore other related stimulus programs: