The pandemic has taken a physical, mental and financial toll on us all but, with the passage of the American Rescue Plan, there are hopeful signs of light at the end of the tunnel. The $1.9 trillion recovery package will save lives, get our kids back in school safely and provide meaningful relief to those who need it.
This week, working families began receiving stimulus checks of $1,400 per person and child, with a cap on individuals making $75,000 per year and couples making $150,000 per year. A Tax Policy Center analysis shows that, as a result of the American Rescue Plan, the lowest-earning Americans will see a 20% increase in after-tax income. It’s no wonder this bill is supported by broad majorities of the public, including 63% of working-class Republicans. Americans understand that families need comprehensive relief.
The American Rescue Plan will help 1.6 million children in the commonwealth with an expansion of the Child Tax Credit and Earned Income Tax Credit. Those same children will see critical investments in their schools: $2.2 billion in K-12 funding, that can be used to reduce class sizes, improve ventilation, provide personal protective equipment (PPE), and provide summer school and other support for students to make up for lost learning time. The law requires states to award K-12 funds to school districts within 60 days, and for school districts to develop plans to ensure students return to in-person learning. I visited Camp Allen Elementary School in Norfolk recently and it warmed my heart to see students returning to the classroom.
To keep our schools open, we need a national vaccine effort. The more effectively we can ramp up vaccine distribution, the more quickly we can begin the work of building back our economy — stronger than before. The American Rescue Plan funds the use of the Defense Production Act to close the gap in domestic manufacturing, while $10 billion will go towards a priority of mine: making Personal Protective Equipment (PPE) right here in America. Additionally, $47.8 billion will go towards expanding our testing, contact tracing and other mitigation efforts.
The pandemic has touched every aspect of our lives. The economic consensus is that the risk of doing too little is far greater than doing too much. Although some have criticized the size of the American Rescue Plan or suggested it addresses things beyond the scope of the pandemic— this misses the point.
For every $1 spent, this legislation will inject $1.25 into the economy. As a former small business owner, I know that’s exactly what we need to boost economic activity. The American Rescue Plan includes $7.25 billion in additional PPP funding, creates a more than $28 billion Restaurant Revitalization Fund, and $15 billion in Economic Injury Disaster grant funding, giving a much-needed shot in the arm to small businesses that fuel our economy. And it will provide much needed assistance to our local travel and tourism industry.
Not only will the American Rescue Plan help save jobs, it will create 10 million new jobs by the fall of 2022, according to Moody’s Analytics, ensuring that our economy will continue to be the strongest in the world.
We’ve learned over the course of the last year that we are all connected; that our health depends on our neighbor’s health; and that the strength of the economy depends on the health of the community. Too many people continue to get sick and too many loved ones continue to succumb to the virus.
With the American Rescue Plan signed into law, and with the successful implementation of its key provisions, there’s finally light at the end of the tunnel.
U.S. Rep. Elaine Luria represents Virginia’s 2nd Congressional District.
