March 10, 2021

H.R.1319 – American Rescue Plan Act of 2021 – Final Text


KEY TAKEAWAYS

  • The Senate passed the Democrats’ nearly $2 trillion reconciliation bill on a party-line vote of 50-49 on March 6.
  • The House passed the final version of the bill on March 10 by a vote of 220-211, with all Republicans and one Democrat voting against it.
  • This paper summarizes the notable provisions of H.R.1319 as amended in the Senate and passed by both chambers. 

The American Rescue Plan Act of 2021 was considered under the budget reconciliation process. The partisan fiscal year 2021 budget resolution included reconciliation instructions for 12 House committees and 11 Senate committees. The House committees reported legislation in February that was combined into the American Rescue Plan Act of 2021, H.R.1319. It passed the House on February 27 by a vote of 219-212. The reconciliation package bypassed Senate committees and went straight to the Senate floor. The legislation was amended on the floor and it passed the Senate on March 6 by a vote of 50-49. The House passed the Senate-passed version of the legislation on March 10 by a vote of 220-211 – all Republicans and one Democrat voted against it. The president is expected to sign the legislation on Friday.

Summary of Final Text of H.R.1319

Title I – Committee on Agriculture, Nutrition, and Forestry

Subtitle A – Agriculture

$3.6 billion for the secretary of agriculture to purchase commodities to be disbursed to people in need and facilitate grants and loans to small and midsize food processors and distributors, as well as grants and loans to bolster supply chains.

Provides a payment to each “socially disadvantaged farmer or rancher” with an outstanding USDA farm loan, in an amount up to 120% of his or her outstanding indebtedness. CBO scores this at a cost of $4 billion. 

Appropriates an additional $1 billion in further support for socially disadvantaged farmers and ranchers.

Appropriates $500 million to the secretary of agriculture to establish an emergency community facilities pilot program to provide grants for COVID-related needs.

Subtitle B – Nutrition

Extends the 15% increase in Supplemental Nutrition Assistance Program benefits provided under the Consolidated Appropriations Act, 2021 through fiscal year 2021, which CBO scores at a cost of $3.54 billion.

Expands and extends the Pandemic EBT program, which CBO scores with a cost of $5.6 billion.

$1 billion for nutrition grants to Puerto Rico, American Samoa, and the Northern Mariana Islands, and $1.2 billion for administration of the SNAP program by states.

Title II – Committee on Health, Education, Labor, and Pensions

Subtitle A – Education Matters

$122.8 billion more for K-12 schools through the CARES Act’s elementary and secondary school emergency relief fund. The bill includes “maintenance of effort” and “maintenance of equity” funding requirements. It reserves $800 million of the K-12 funding for identifying and providing services to homeless children and youth, as well as providing assistance to enable them to attend school. It also requires local educational agencies to seek public comment and then put a plan for returning to in-person learning on their website within 30 days of receiving funds.

$2.8 billion for emergency assistance to non-public schools. The bill requires schools to “enroll a significant percentage of low-income students” and be most affected by the pandemic in order to be eligible. The money cannot be used to reimburse schools for expenses they have incurred.

$39.6 billion for institutions of higher education through the higher education emergency relief fund.

$850 million for the outlying areas.

Funding for other education programs, such as $91.1 million for student aid administration at the Department of Education and $35 million for Howard University.

$3 billion for grants and programs under the Individuals with Disabilities Education Act.

Changes the Higher Education Act’s “90-10 rule,” which requires proprietary institutions of higher education to get at least 10% of their revenue from sources beyond Title IV federal education aid. The bill broadens the rule to require that these schools receive at least 10% of their revenue from sources beyond all “federal education assistance funds.” The term “federal education assistance funds” is not defined in the U.S. Code, but House Democrats’ summary document says the provision is intended to include GI Bill education benefits, which are not under Title IV. The bill requires these changes to go through negotiated rulemaking no sooner than October 1. The rulemaking will apply to schools’ fiscal years beginning on or after January 1, 2023.

$135 million for the National Endowment for the Arts.

$135 million National Endowment for the Humanities.

$200 million for the Institute of Museum and Library Services.

Subtitle B – Labor Matters

$200 million for worker protection activities at the Department of Labor. At least half of this total is for the Occupational Safety and Health Administration. The bill reserves $5 million of the OSHA funds for COVID-related enforcement in high-risk workplaces such as meat and poultry processing facilities.

Subtitle C – Human Services and Community Supports

$15 billion in Child Care and Development Block Grant funding.

$24 billion for Child Care Stabilization grants.

$1 billion for Head Start agencies.

Provides $425 million to HHS to be used as the secretary determines for cost increases resulting from the pandemic to carry out programs under the Administration for Children and Families.

Subtitle D – Public Health

$7.5 billion for the Centers for Disease Control and Prevention for vaccine distribution.

$1 billion for CDC vaccine confidence activities, including vaccine education and increasing vaccination rates.

$5.6 billion for vaccine and treatment supply chain activities, including research, development, manufacturing, and purchasing of vaccines, treatments, and ancillary supplies.

$500 million for vaccine, treatment, and diagnostics activities at the FDA.

Subtitle E – Testing

$47.8 billion for coronavirus testing, contact tracing, surveillance, and mitigation of COVID-19.

$1.8 billion is provided to CDC for genome sequencing and surveillance to identify and characterize viruses.

$750 million for global health activities conducted through the CDC.

Subtitle F – Public Health Workforce

$7.7 billion to HHS for a new public health workforce, including contact tracers and community health workers.

Subtitle G – Public Health Investments

$7.6 billion to community health centers to distribute vaccines and to test and monitor coronavirus infections $50 million for the Title X family planning program

Subtitle H – Mental Health and Substance Use Disorder

$1.5 billion for community mental health block grant programs.

$1.5 billion for block grants for the Substance Abuse Prevention and Treatment.

Subtitle L – Assistance for Older Americans, Grandfamilies, and Kinship Families

Provides $1.4 billion to fund programs authorized through the Older Americans Act.

Title III – Committee on Banking, Housing, and Urban Affairs

Subtitle A – Defense Production Act of 1950

Provides $10 billion for Defense Production Act activities including purchase or production of COVID-related medical supplies and equipment under DPA Titles I, III, and VII authorities.

Subtitle B – Housing Provisions

Provides $21.6 billion to the Treasury, available through September 2027, for emergency assistance grants for rent, utilities, and other housing expenses by eligible households, including those that have COVID-related financial hardships or have someone who qualifies for unemployment. The bill reserves $2.5 billion of the total for high-need grantees. It allows grantees to use, subject to certain restrictions, any funds unobligated after September 2022 for other affordable housing purposes, to be defined by Treasury. This is in addition to the $25 billion Congress provided for rental assistance in December in the Consolidated Appropriations Act, 2021.

$5 billion to the Department of Housing and Urban Development, available through September 2030, to provide emergency rental assistance vouchers to people who are homeless, at risk of homelessness, or fleeing domestic violence or human trafficking.

$100 million, available through September 2022, to support unassisted households living in USDA-subsidized properties.

$100 million, available through September 2025, for the Neighborhood Reinvestment Corporation to make grants to organizations it approves for activities including housing counseling, operational funding of grantees, and technology upgrades.

$5 billion, generally available through September 2025, to state and local government grantees for homelessness assistance, including financing support, housing counseling, and acquiring non-congregate shelters such as hotels.

$10 billion to the Treasury, available through September 2025, for a new homeowner assistance fund, through which states and other grantees could use the funds to assist people with paying for things such as mortgages, utilities, and homeowner’s insurance.

$39 million for other homeowner assistance funding for section 502 and 504 loans at the USDA.

$20 million to HUD to fund legal aid, fair housing, and other eligible nonprofit organizations promoting fair housing initiatives program activities.

Subtitle C – Small Business

Provides $10 billion to the Treasury to restart the Obama-era State Small Business Credit Initiative, which provides funding to states to use for state programs that lend to or invest in small businesses.

Subtitle D – Public Transportation

$30.5 billion for the Federal Transit Administration grants.

Title IV – Committee on Homeland Security and Governmental Affairs 

$50 billion for the Disaster Relief Fund under the Federal Emergency Management Agency.

$400 million to the FEMA emergency food and shelter program.

$110 million for FEMA assistance at the border. This departs from FEMA’s traditional mission by using the agency to help process migrants at the border.  

$300 million for fire-related grants given out by the Department of Homeland Security.

$100 million for FEMA emergency management performance grants.

$650 million to the Cybersecurity and Infrastructure Security Agency for cybersecurity risk mitigation.

$200 million to the U.S. Digital Service.

$1 billion to the Technology Modernization Fund.

$150 million to the General Services Administration for the Federal Citizen Services Fund.

Creates a $570 million Emergency Federal Employee Leave Fund.

Extends the expiration date for agencies to modify contract terms and conditions without consideration from September 30, 2020, to September 30, 2021. Agencies were authorized to make those payments by section 3610 of the CARES Act of 2020. The authority applies only to contractors whose employees or subcontractors cannot perform work due to COVID-19.

Title V – Committee on Small Business and Entrepreneurship

Provides $7.3 billion for the Paycheck Protection Program.

Expands program eligibility to a number of non-profits, as well as certain internet publishing organizations. Does not allow individual Planned Parenthood locations to be eligible for PPP. Does not allow larger non-profits, like labor unions to qualify for PPP.

Provides $15 billion for the Targeted Economic Injury Disaster Loan program and sets aside $5 billion for entities with 50% or more revenue disruption and with 10 or fewer employees.

Establishes a program to assist restaurants and other food and drinking establishments and provides $28.6 billion for it.

Provides $1.3 billion for the SBA Shuttered Venue Operators Grant Program.

$175 million for a new community navigators program.

Title VI – Committee on Environment and Public Works

$3 billion for the Economic Development Administration to facilitate economic adjustment assistance for pandemic response and preparedness.

$100 million for the Environmental Protection Agency to respond to health disparities stemming from pollution and the pandemic.

$105 million for the U.S. Fish and Wildlife Service: $20 million to address wildlife trafficking; $30 million for efforts pertaining to care of species including in facilities that lost revenue during COVID; $45 million for research to avoid and mitigate future pandemics stemming from wildlife disease outbreaks; and $10 million to implement the Lacey Act.

Title VII – Committee on Commerce, Science, and Transportation

Subtitle A – Transportation and Infrastructure

$1.7 billion for Amtrak.

$8 billion for airports, including $800 million to aid airport concessionaires.

$9 million for FAA employee leave fund.

$13 million for Transportation Security Administration employee leave fund.

Subtitle B – Aviation Manufacturing Jobs Protection

$3 billion to provide relief for aviation manufacturing businesses.

Subtitle C – Airlines

$15 billion to extend payroll support provisions for aviation sector employees, including $14 billion for passenger airlines and $1 billion for contractors.

Subtitle D – Consumer Protection and Commerce Oversight 

Establishes a $$7.17 billion Emergency Connectivity Fund at the Federal Communications Commission to provide funding for eligible schools and libraries to offer connected devices, internet service, hotspots, etc. to students and teachers to connect to the internet at home.

Subtitle E – Science and Technology

$150 million for the National Institute of Standards and Technology to support COVID-related research at existing Manufacturing USA institutes.

$600 million for the National Science Foundation to fund new and existing research grants aimed at supporting COVID-related impacts and response efforts.

Title VIII – Committee on Veterans’ Affairs

$14.5 billion for VA medical services.

$100 million for supply chain modernization efforts.

$500 million for VA for State Veterans Homes construction funds.

$250 million in emergency payments for State Veterans Homes operations.

$386 million for the VA rapid retraining program.

Waives copayment requirements until September 30, 2021, which CBO scores at $1 billion.

Title IX – Committee on Finance

Subtitle A – Crisis Support for Unemployed Workers

Extends the “pandemic unemployment assistance” program – for independent contractors, the self-employed, and other workers who normally do not qualify for regular state benefits – to September 6.

Extends the “federal pandemic unemployment compensation” program to September 6 at the current level of $300 per week.

Extends the “mixed-earner supplemental benefit” – for people with at least $5,000 of self-employment income who do not qualify for PUA because they also have wage income that makes them qualify for some amount of regular state benefits – to September 6.

Extends the “pandemic emergency unemployment compensation” program to September 6. This is for people who have used up regular state benefits.

Adds a special rule for 2020 that the first $10,200 of unemployment compensation someone receives is not included as gross income for tax purposes. This applies for households with incomes under $150,000. Pays for this provision by extending, through 2026, section 461(l) of the tax code, which pertains to limits on excess business losses of noncorporate taxpayers.

$2 billion for a program administered by the Department of Labor to help states upgrade their unemployment insurance systems.

Subtitle C – Emergency Assistance to Children and Families

$1 billion for pandemic emergency assistance to provide nonrecurring short-term benefits to low-income families.

Subtitle D – Elder Justice and Support Guarantee

Provides $276 million in elder justice funding for fiscal years 2021 and 2022 

Subtitle E Support to Skilled Nursing Facilities in Response to COVID-19

Provides $200 million for infection-control support for skilled nursing facilities.

Subtitle F – Preserving Health Benefits for Workers

Provides additional federal assistance to people who have lost their jobs due to the coronavirus pandemic. Pays for the full premium of their COBRA continuation insurance until September 30.

Subtitle G – Promoting Economic Security

Tax code provisions for individuals, including additional “recovery rebates” and changes to the child tax credit, Earned Income Tax Credit, child and dependent care tax credit, and ACA marketplace subsidies. Includes COVID-related tax provisions for employers and self-employed people, including credits for paid sick and family leave and the employee retention credit.

2021 Recovery Rebates to Individuals

  • Provides a $1,400 refundable tax credit to individuals with up to $75,000 in adjusted gross income (or AGI of $112,500 for heads of household and $150,000 for married couples filing jointly). For couples filing jointly, the credit is $2,800.

  • The refundable tax credit will be paid out in advance like the Economic Impact Payments previously provided in the CARES Act and the Consolidated Appropriations Act, 2021.

  • The credit will be phased out entirely for those with incomes above $80,000 (or $120,000 for heads of household and $160,000 for married couples filing jointly). The credit is reduced between $75,000 and 80,000 (or $112,500 and $120,000 for heads of household and $150,000 and $160,000 for married couples filing jointly).

  • Provides $1,400 for both children and non-child dependents.

Child Tax Credit

  • Increases the CTC amount to $3,000 per child for 2021, up from $2,000 under current law. For children under the age of six, the credit is increased to $3,600. The provision also broadens the definition of “qualifying child” to include children under 18 years old instead of 17.

  • Phases out the additional credit amount − $1,000 per child six and over; $1600 per child under six − for joint filers with a modified adjusted gross income above $150,000 ($112,500 for head of household filers and $75,000 for other filers).

  • Makes the CTC fully refundable in 2021. The CTC is currently only refundable up to $1,400 per qualifying child. With a refundable tax credit, taxpayers can generate a refund in excess of their income tax liability.

  • Creates a new program at the IRS to make periodic advance payments of the CTC based on 2019 or 2020 tax return information, from July 2021 through December 2021. These payments would comprise half of the child tax credit for which the taxpayer is otherwise entitled for 2021, with the remaining half claimed on the 2021 tax return.

  • Directs the IRS to establish an online portal to allow taxpayers to opt out of receiving advanced payments and provide information regarding changes in income, marital status, and number of qualifying children for purposes of CTC eligibility.

  • JCT estimates that these changes would increase outlays by $88 billion and reduce revenues by $21 billion over the 2021-2030 period.

Earned Income Tax Credit

  • For 2021, the bill expands eligibility requirements for the EITC for taxpayers without dependents, reducing the minimum age from 25 years old to 19 years old and increasing the upper age limit to include taxpayers over 64 years old. Special age provisions for students, qualified former foster youth, and qualified homeless youth are applicable.

  • For 2021, the bill increases the maximum credit amount for taxpayers without dependents.

  • The bill also makes several permanent changes to the EITC, including increasing the amount of investment income that would disqualify a taxpayer from receiving the credit.

  • JCT estimates these changes would reduce revenues by $4 billion and increase outlays by $21 billion over the 2021-2030 period.

Premium Tax Credit

  • Expands ACA subsidies for 2021 and 2022 to higher-income earners who currently do not qualify for ACA coverage. Allows households making above 400% of the federal poverty level eligible for a premium cap of 8.5%. These subsidies vary in generosity based on the eligibility income level.

  • Waives the requirement for taxpayers to pay back excess advance premium tax credits to the IRS for the 2020 tax year. ACA marketplace enrollees receive APTCs, which are based on their annual income and lower the amount they pay monthly throughout the plan year.

  • Increases the amount of premium tax credits for people receiving unemployment insurance benefits during 2021. This provision would take UI payments out of the calculation of eligibility for PTCs if their income was 133% of the federal poverty level or less.

Exempts student loan forgiveness in years 2021-2025 from federal income tax.

Subtitle H – Pensions

Provides taxpayer assistance for underfunded multiemployer pension plans. Under the bill, the Pension Benefit Guaranty Corporation would give grants, called “special financial assistance,” to eligible MEP plans out of a newly established PBGC fund, which will be funded with money from the Treasury. Plans would have to apply by December 31, 2025, and the grants will cover projected benefits through 2051. Plans must meet one of several criteria, which include already having been approved by Treasury to reduce participant benefits or being in critical and declining status in any plan year from 2020 through 2022. The bill also increases MEP premiums to $52 per participant in 2031 and then indexes the rate to inflation. Under current law, CBO projects premium rates would increase from $31 in 2021 to $44 in 2031. CBO projects an average of 185 MEP plans will receive $86 billion in federally funded grants.

The bill makes changes that reduce employer funding requirements for single-employer pension plans. It includes a provision for community newspapers that allows them to contribute less to their pension plans and fund their plan shortfalls over a longer period of time.

Expands the limitation on deducting compensation for publicly traded companies’ five most highly paid executives to include the next five highly compensated employees beginning in 2027.

Subtitle I – Child Care for Workers

Increases funding for the child care entitlement to states program to $3.6 billion per year.

Subtitle J – Medicaid 

Requires Medicaid coverage for coronavirus vaccines and treatment with no cost sharing for beneficiaries. Vaccines are matched at 100% federal Medicaid matching rate for one year after the public health emergency.

Incentivizes Medicaid expansion by increasing states’ base FMAP by five points for two years for states that expand their Medicaid programs. The FMAP increase would apply to states that expand their Medicaid program after this legislation is enacted.

Provides additional federal support for Medicaid home and community-based services. Increases the FMAP by 10 percentage points for expenditures for these services for the duration of the public health emergency.

Provides $250 million for “strike teams” to assist skilled nursing facilities with diagnosed or suspected coronavirus cases among residents and staff.

Subtitle K – Children’s Health Insurance Program

Requires CHIP coverage for coronavirus vaccines and treatment with no cost sharing to the beneficiary. Vaccines are matched at 100% FMAP for one year after the public health emergency.

Subtitle L – Medicare

Allows ambulance providers to receive reimbursement for services delivered to Medicare beneficiaries during the coronavirus pandemic. Currently, Medicare does not cover ambulance providers when an enrollee is treated on-location. The provision would give the Centers for Medicare and Medicaid Services the authority to reimburse ambulance providers for care provided to beneficiaries even if the patient is not transported to a health care facility due to the coronavirus public health emergency protocols.

Subtitle M – Coronavirus State and Local Fiscal Recovery Funds

Provides $350 billion for states, localities, tribes, and territories.

$4.5 billion for territories – half equally divided and half based on population.

$20 billion for federally recognized tribes.

  • $1 billion equally divided.

  • $19 billion divided by the secretary of the treasury.

$195.3 billion for states and the District of Columbia.

  • $25.5 billion divided equally among the states and D.C. 

  • $169.8 billion divided based on state’s and D.C.’s share of total unemployed people in the country.

  • Treats D.C. as if it were a state under the CARES Act.

  • Gives the treasury secretary the authority to withhold payment of up to 50% of the amount allocated to each state and territory for up to a year, based on the unemployment rate in the state or territory. Before paying the remainder withheld funds, the secretary must require the state or territory to submit a second certification that the funds are needed and will be used in compliance with statutory limitations.

$130.2 billion for cities and counties.

  • $65.1 billion for counties, divided based on population.

  • $65.1 billion for cities, divided based on a modified CDBG formula.

    1. $45.6 billion for cities with populations over 50,000.

    2. $19.5 billion for cities with populations under 50,000.

Allows states and territories to use funds to provide premium pay to eligible workers of the state, territory, or tribal government who are performing “essential” work or provide grants to eligible employers that have eligible workers who perform essential work.

Adds “broadband infrastructure” to the list of permitted uses of state and local fiscal recovery funds.

Adds $10 billion for making payments to states, territories, and tribal governments to carry out critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to COVID-19.

Final bill adds another $2 billion for counties and tribal governments.

  • County payments will be allocated by the treasury secretary, “taking into account economic conditions of each eligible revenue sharing county, using measurements of poverty rates, household income, land values, and unemployment rates as well as other economic indicators, over the 20-year period ending with September 30, 2021.”

  • Tribal payments will be allocated by the treasury secretary, taking into account economic conditions of each eligible tribe.

Subtitle N – Other Provisions

Allocates $8.5 billion to rural hospitals and providers.

Title X – Committee on Foreign Relations

Global Response

$8.7 billion to prepare, prevent, and respond to coronavirus.

  • $3.8 billion for HIV/AIDS programs to control coronavirus, with $3.5 billion of this going to the Global Fund to Fight AIDS, Tuberculosis, and Malaria.

  • $3 billion to the U.S. Agency for International Development to address COVID-19 internationally.

Multilateral Assistance

$580 million to support the United Nations Global Humanitarian Response Plan for COVID-19.

Title XI – Committee on Indian Affairs   

$900 million for Indian affairs, including $772.5 million for tribal government services and assistance, $100 million to support tribal housing, and $20 million to facilitate potable water.

$850 million for the Bureau of Indian Education.

$6.1 billion for tribal health programs.

$750 million, available through September 2025, for housing assistance and support services through Indian Community Development Block Grants, Native American Housing Block Grants, and Native Hawaiian Housing Block Grant programs.

$20 million for the preservation of Native American languages.