American Rescue Plan

On March 10, the House passed and sent to the President’s desk the American Rescue Plan, a sweeping relief package that will save lives and livelihoods as our country continues to face the COVID-19 pandemic. The legislation will crush the virus and get the economy moving by speeding vaccinations, putting money in pockets, children in schools, and people in jobs.  

 Economists estimate that the plan will create 7.5 million jobs and bring the economy back to near full employment in a little over 12 months, which would have taken at least three years without the new legislation.  

Vaccines in Arms 

  • The American Rescue Plan provides $275 million to Illinois to speed up the distribution of vaccines and set up community vaccination centers.  
  • It also provides $1.5 billion to Illinois for testing, tracing, and mitigation efforts to fight the spread of COVID-19 and provide PPE to frontline health care workers. 

Money in Pockets 

  • Delivers another round of relief checks to adults with incomes up to $80,000 and families with incomes up to $160,000. Most adults and dependent children will receive $1,400 each. This newly applies to dependent adult children because of a change Rep. Underwood advocated for. 
  • It includes legislation introduced by Rep. Underwood, the Health Care Affordability Act, to put money back in families’ pockets by reducing health care costs. It will 
    • Increase the generosity of premium tax credits across all income levels, eliminating premiums for people at the lowest income levels and reducing premiums for millions of Americans;  
    • Expand eligibility for premium tax credits to people with incomes above 400% of the federal poverty level (FPL), guaranteeing that anyone who buys Marketplace; insurance can purchase a plan for 8.5% of their income or less; 
    • Eliminate premiums for people who receive UI in 2021. 
  • Increases the Child Tax Credit for 2021 from $2,000 per child to $3,600 per child under age 6 and $3,000 per child under age 18. This applies to single filers earning up to $75,000, head of household filers earning up to $112,500, and joint filers earning up to $150,000 and is refundable, meaning families will receive it as a direct payment even if they do not owe taxes this year.  
    • To ensure families receive immediate relief, starting in July, the IRS will distribute half of the credit via direct payments. This means a family claiming the full expanded credit could receive $250 a month per child from July to December 2021, and then would receive the remainder as a credit on their 2021 tax return.   
    • The expanded Child Tax Credit will benefit nearly 9 in 10 Illinois children and lift over 150,000 Illinois children out of poverty. 
  • Keeps the weekly federal unemployment benefit at $300 per week through September 6 and extends the Federal Pandemic Unemployment Compensation (FPUC) program. The law also exempts the first $10,200 in unemployment benefits received in 2020 from federal income taxes for households making less than $150,000.  
  • It also fixes a glitch in eligibility for recipients of Illinois' pandemic unemployment assistance program, restoring payments to workers who had lost them in early March. 
  • Furthermore, the legislation will help homeowners struggling to afford their housing as a result of the coronavirus pandemic by providing by providing  $10 billion to a fund providing direct assistance with mortgage payments, property taxes, property insurance, utilities, and other housing related costs. 

Children in Schools  

  •  The American Rescue Plan invests nearly $130 billion directly in K-12 education to help schools operate safely and make up for lost learning time. IL-14 school districts will receive approximately $169 million, specified below. 
  •  It provides an estimated $1.3 billion to support Illinois institutions of higher education and help their students cope with the financial strain caused by COVID-19. 
  • It also includes $40 billion to stabilize the child care system and make child care more affordable for families. 

People in Jobs 

  • The American Rescue Plan provides crucial support to help the hardest-hit small businesses keep their doors open with $15 billion in Economic Injury Disaster Loans (EIDL) grants, expanded Paycheck Protection Program (PPP) eligibility and an additional $7.25 billion in funding, $29 billion for a Restaurant Revitalization Fund to support struggling restaurants and bars, and additional resources to help small and disadvantaged businesses navigate and access COVID relief programs. 
  • Continues to support popular programs to support non-profits stay open and keep their employees on payroll. 
  • It also provides resources to protect the jobs of first responders, frontline public health workers, teachers, transit workers and other essential workers, who all Americans depend on by providing funding to municipalities to cover pandemic-related costs.  

Questions about how the American Rescue Plan Helps You 

How big are the direct payments and who gets them? 

The direct payments are $1400 for most Illinoisians who are eligible to receive them. To be considered eligible a person must have a Social Security number. Additionally, a single person must have an annual salary of $75,000 or below. For a head of household, that number goes up to $112,500 and for married couples filing jointly that number is $150,000 or below. Those who are eligible can also receive a payment up to $1400 for each of their children. 

For higher earners, partial payments may be available. Payments phase out as income rises. For single filers, the checks decrease to zero at $80,000. For heads of household, the cutoff is $120,000. And for joint filers, the checks stop at $160,000. Payments for children decrease in the same way. 

How fast will I get my payment? 

Once the President signs the American Rescue Plan into law, most people will receive payments within days, or at the same rate which they received their first round of payments. You can track your payment via the IRS and my office can help if you are having trouble getting the money you think you’re owed.  

I never got my last payment, can I still get that? 

If you were eligible but didn’t receive previous direct payments, you should recover it through your 2020 tax filings. You can make your claim on Line 30 of Form 1040 or 1040-SR. 

My child is a college student, do I get a direct payment for them? 

Yes, this is a new change that Rep. Underwood advocated for. Now, if the student is claimed as a dependent, the parent will receive a direct payment for them.  

What happens to the Child Tax Credit?  

The child and dependent care tax credit is going to be significantly expanded for 2021. The annual amount will raise from the current $2,000 per child to $3,600 for children under age 6 and $3,000 for children under age 18. The legislation also made the credit fully refundable, which means you can now collect that money as a refund if you didn’t have a tax bill. The legislation also requires Treasury to issue advanced payments to families beginning in July 2021.  

I’m unemployed, what does this legislation mean for me? 

If you are currently receiving unemployment benefits, payments will be extended for other 25 weeksuntil September 6. The weekly supplemental benefit of $300 will also run through September 6. Generally, unemployment benefits are taxable, but with the American Rescue Plan, the first $10,200 of benefits in 2020  are now tax-free for people who have incomes of less than $150,000.  

What does the relief package mean for my health care? 

The American Rescue Plan will help you keep your health care by making it more affordable. First, the Plan makes Health Insurance Marketplace plans lower cost than ever by including Rep. Underwood’s  Health Care Affordability Act, which:  

  • Increases the generosity of premium tax credits across all income levels, eliminating premiums for people at the lowest income levels and reducing premiums by hundreds or thousands of dollars for millions of Americans;  

  • Expands eligibility for premium tax credits to people with incomes above 400% of the federal poverty level (FPL), guaranteeing that anyone who buys Marketplace insurance can purchase a plan for 8.5% of their income or less.

The plan also eliminates Health Insurance Marketplace premiums for people who receive unemployment insurance in 2021. 

The American Rescue Plan will help people who lose their job and choose to keep their employer-sponsored health coverage by enrolling in COBRA by covering 100 percent of their COBRA premiums. Before the American Rescue Plan, those who would like to choose COBRA are required to pay the full cost of their coverage, including the employer contribution, making the cost prohibitive and preventing many from doing so. 

President Biden recently opened a special open enrollment period for the Health Insurance Marketplace, which lasts until May 15. This means you can sign up for health coverage or shop around for better or lower cost coverage. The new, lower premiums won’t appear on HealthCare.gov right away, but when they are available we will alert you via email. Sign up HERE. In the meantime, you can find an unofficial Health Insurance Marketplace Calculator HERE. 

Has anything changed with my student loans? 

Any future student loan forgiveness passed between December 2020 and January 2026 will not be considered taxable income. 

I’m struggling to afford my mortgage, will this help me? 

This legislation provides $10 billion for the Homeowner Assistance Fund that allocates funds to help homeowners struggling to afford their housing due directly or indirectly to the impacts of the COVID-19 pandemic. These funds will provide those struggling with direct assistance with mortgage payments, property taxes, property insurance, utilities, and other housing related costs. We will be providing more information on this program as it becomes available.  

What does the legislation mean for SNAP funding?  

There will be a 15 percent increase in SNAP benefits through September to help struggling families put food on their table.  

 

Local Funding Estimates from the American Rescue Plan 
 
The American Rescue Plan provides an estimated $893 million to IL-14 municipalities. New State and Local Coronavirus Relief Funds to cover pandemic related costs and keep first responders, frontline health workers, and other providers of vital services safely on the job as states, local governments, Tribes, and territories roll out vaccines and fight to rebuild Main Street economies. Funds must be used to address the pandemic or its negative economic impacts, including to replace revenue lost, delayed, or decreased as a result of the pandemic.
 

DeKalb County

                                                                       $20,340,000

DuPage County

$178,990,000

Kane County

$103,260,000

Kendall County

$25,020,000

Lake County

$135,090,000

McHenry County

$59,690,000

Will County

$133,970,000

Algonquin Village

$3,820,000

Antioch Village

$1,780,000

Aurora

$38,230,000

Batavia City

$3,260,000

Beach Park Village

$1,690,000

Bolingbrook Village

$9,210,000

Bull Valley Village

$130,000

Burlington Village

$80,000

Campton Hills Village

$1,370,000

Channahon Village

$1,640,000

Cortland Town

$540,000

Crystal Lake City

$4,920,000

Dekalb 

$11,520,000

Elburn Village

$740,000

Elgin

$21,650,000

Fox Lake Village

$1,290,000

Geneva City

$2,690,000

Greenwood  Village

$30,000

Gurnee Village

$3,750,000

Hampshire Village

$770,000

Harvard City

$1,120,000

Hawthorn Woods Village

$1,070,000

Hebron Village

$150,000

Hinckley Village

$250,000

Holiday Hills Village

$70,000

Huntley Village

$3,360,000

Island Lake Village

$990,000

Johnsburg Village

$790,000

Joliet

$23,860,000

Kaneville Village

$60,000

Lake Barrington Village

$600,000

Lake in the Hills Village

$3,540,000

Lake Villa Village

$1,060,000

Lakemoore Village

$740,000

Lakewood Village

$490,000

Lily Lake Village

$130,000

Lindenhurst Village

$1,760,000

Lisbon Village

$40,000

Maple Park Village

$170,000

Marengo CIty

$920,000

McCullom Lake Village

$120,000

McHenry City

$3,340,000

Millbrook Village

$40,000

Millinton Village

$80,000

Minooka Village

$1,410,000

Montgomery Village

$2,430,000

Mundelein Village

$3,840,000

Naperville

$13,390,000

Newark Village

$130,000

North Aurora Village

$2,230,000

North Barrington Village

$360,000

Oakwood Hills Village

$250,000

Old Mill Creek Village

$20,000

Oswego Village

$4,480,000

Pingree Grove Village

$1,220,000

Plainfield Village

$5,470,000

Plano City

$1,440,000

Plattville Village

$30,000

Port Barrington Village

$180,000

Prairie Grove Village

$240,000

Richmond Village

$240,000

Ringwood Village

$100,000

Sandwich City

$920,000

Shorewood Village

$2,160,000

Somonauk Village

$230,000

Spring Grove Village

$700,000

St. Charles City

$4,060,000

Sugar Grove Village

$1,220,000

Sycamore City

$2,260,000

Union Village

$70,000

Virgil Village

$40,000

Volo Village

$720,000

Wadsworth Village

$450,000

Warrenville City

$1,630,000

Wauconda Village

$1,670,000

Waukegan

$19,930,000

West Chicago City

$3,310,000

Wonder Lake Village

$480,000

Woodstock City

$3,120,000

*funding estimates were prepared by Congressional Research Service   . The list of eligible governments and their respective populations was generated from the 2019 City and Town dataset from the Census Bureau, which includes data on both “incorporated areas” and “minor civil divisions. In all cases, the list of nonentitlement governments intends to accurately capture the total population eligible for assistance in each state, rather than the total number of governments eligible for assistance, as the total state population is used to calculate the amount every nonentitlement government will receive.

The list of “metro cities” as defined in the proposal and the allocation amounts provided to those cities were generated from the FY2020 CDBG entitlement awards distributed to those cities as shown on the HUD website. Select city governments that qualify but have chosen not to participate in the CDBG entitlement program have been added, as that information has been made available, with allocation amounts estimated by CRS using the limited data available for those cities. Metro Cities are demarcated with an asterisk * 

Please note that these estimated numbers may shift as more recent data becomes available. 

Estimates also do not account for the cap on nonentitlement assistance equal to 75% of the government’s previous annual budget.

 

Funding Estimates for local school districts

Beach Park Community Consolidated School District 3

$3,184,000

Marengo-Union Elementary Consolidated District 165

$1,107,000

Nippersink School District 2

$840,000

Alden-Hebron School District 19

$851,000

Antioch Community Consolidated School District 34

$1,818,000

Antioch Community High School District 117

$1,873,000

Aurora West Unit School District 129

$22,231,000

Batavia Unit School District 101

$1,680,000

Central Community Unit School District 301

$2,180,000

Community Unit School District 300

$19,174,000

Crystal Lake Community Consolidated School District 47

$4,946,000

Community High School District 155

$3,008,000

DeKalb Community Unit School District 428

$13,287,000

Emmons School District 33

$185,000

Fox Lake Grade School District 114

$970,000

Fremont School District 79

$531,000

Geneva Community Unit School District 304

$1,759,000

Grass Lake School District 36

$522,000

Gurnee School District 56

$2,021,000

Harrison School District 36

$635,000

Harvard Community Unit School District 50

$3,759,000

Hinckley-Big Rock Community Unit School District 429

$746,000

Huntley Consolidated School District 158

$1,592,000

Johnsburg Community Unit School District 12

$1,190,000

Lake Villa Community Consolidated School District 41

$1,643,000

 

 

Kaneland Community Unit School District 302

$1,085,000

Marengo Community High School District 154

$581,000

McHenry Community Consolidated School District 15

$4,263,000

McHenry Community High School District 156

$1,836,000

Millburn Community Consolidated School District 24

$267,000

Minooka Community Consolidated School District 201

$1,062,000

Newark Community High School District 18

$148,000

Newark Community Consolidated School District 66

$166,000

Oswego Community Unit School District 308

$4,523,000

Plainfield School District 202

$15,352,000

Plano Community Unit School District 88

$2,353,000

Prairie Grove Community School District 46

$434,000

Richmond-Burton Community High School District 157

$434,000

Riley Community Consolidated School District 18

$323,000

Sandwich Community Unit School District 430

$2,113,000

Somonauk Community Unit School District 432

$637,000

St. Charles Community Unit School District 303

$3,251,000

Sycamore Community Unit School District 427

$2,612,000

Wauconda Community Unit School District 118

$2,971,000

West Chicago School District 33

$6,361,000

Indian Prairie Community Unit School District 204

$6,594,000

Community Unit School District 200

$8,800,000

Woodland Community Consolidated School District 50

$4,180,000

Woodstock Community Unit School District 200

$5,777,000

Yorkville Community Unit School District 115

$1,575,000