When President Joe Biden released his eagerly awaited new stimulus package on March 11, millions of unemployed, hungry, and otherwise financially stressed Americans pored over every detail.
Though the new bill mirrored some of the primary, less-funded ideas of the 2020 version, this stimulus bill was super-sized and represented a massive relief package.
The new stimulus bill offers robust opportunities for Americans to receive a significantly increased amount of government money and includes immigrant families under specific conditions.
President Biden said that about 85 percent of the American public would receive stimulus payments.
Here are the numerous ways the Biden relief bill differs from the prior administration’s version.
Direct Payments
In 2020 families received payments of $1,200 and $600 as long as they earned under $75,000, along with $500 for child dependents. In 2021 the Biden relief bill has three different ways for individuals and families to receive payments.
1. New direct payment of $1,400 now to families or individuals (with less than $75,000 annual income). The payments would gradually lessen according to income levels and not be paid for individuals earning over $80,000 or couples earning $160,000.
2. Each dependent receives $1,400. Unlike the prior stimulus package, adult children with disabilities, college students, and older adult relatives receive $1,400.
3. Additional $300 added to every unemployment check through September 6, 2021.
4. The Biden bill includes payments to families with “mixed citizenship status,” meaning any family with at least one US citizen will receive money.
New Tax Bill Provision
The new bill includes a specific provision that will end surprise tax bills for anyone who lost their jobs. The new bill provision waives federal income taxes for the first $10,200 of unemployment benefits received in 2020 for any household earning under $150,000.
Greatly Enhanced Tax Credit for Children
The first stimuli package in 2020 only offered $2,000 for children under 17.
In Biden’s new relief bill, the new tax credit is up to $3,6000 for children up to five years of age and as high as $3,000 for children between six and seventeen.
This enhanced child tax credit protects low-income families by offering the full tax credit value available to them even if they are now illegible or only receive a portion.
In the third and fourth quarters of 2021, the federal government will send advance payments to families in regular installments to assist with the income of families with children.
New Child Care and Dependent Care Tax Credit Expansion
The Biden legislation expands tax credits for both child and dependent care.
This new relief package also expands earned-income tax credits for any workers without children.
Student Loan Forgiveness Enhancement
The legislation offers total forgiveness for student loans through 2025, greatly expanding the prior 2020 months-long pause of college loan payments. Under debate now is the Biden plan to cancel up to $10,000 of all college loan debt.
Pandemic Economic Support
Biden’s new bill offers robust further financial support for funding the vaccine distribution, COVID-19 testing, contact tracing, genomic sequencing, and vaccine work on the growing number of new COVID-19 variants.
The new package is sending funds to the Federal Emergency Management Agency.
All local governments, including states, territories, and tribal governments, are included in the new funding of $350 billion. This inclusion of territories and tribal governments named specifically for such relief funding is a first for any president.
Affordable Health Care Boost
Health insurance for all Americans is being beefed up and funded more heavily via the Affordable Health Care program. The new Biden relief bill temporarily increases subsidies for people purchasing healthcare via the current marketplaces under Affordable Health Care.
Billions of dollars are in the new legislation to support veteran’s health care and other health programs.
School Funding and More
Biden’s new relief bill is sending about $130 billion to American schools, state colleges and universities, food assistance programs, housing aid organizations, child care providers, and transit agencies.
Live Music Venues and Restaurants
The new package includes funding for numerous businesses, including new rounds of the PPP funding to restaurants, live venues, and funds to save pension plans in financial stress.
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