What Approval Of The $1.9T Relief Bill Means For Michigan

DETROIT, MI — Michigan officials are praising the U.S. House of Representatives after it voted Wednesday to approve a final version of the American Rescue Plan Act, a $1.9 trillion coronavirus relief bill that includes direct payments, child tax allowances, and billions in funding for schools, transit, rental assistance and vaccination efforts.

Michigan's seven Democratic representatives voted yes on the plan, while the state's seven Republican lawmakers voted no. According to the official vote tally, just one Democratic representative voted against the measure, joining all Republican members of the House.

President Joe Biden indicated he would sign the legislation by the weekend, as previous unemployment benefits are set to expire.

Senator Gary Peters (MI) released the following statement Wednesday in reaction to the passage of the bill:

“A year into this pandemic, it’s clear that Michiganders and Americans still need additional support to put food on the table, pay their bills and make ends meet. I have heard gut-wrenching personal stories from countless Michiganders – who are trying to keep their heads above water and get through this public health and economic crisis. The American Rescue Plan will deliver much-needed relief, and I’m glad this bill is now going to be signed into law.

"This landmark aid package includes robust funding to distribute direct $1,400 stimulus checks, accelerate vaccine distribution, help ensure schools can reopen safely, extend unemployment benefits, support small businesses and help communities carry out essential functions. I was proud to help pass the American Rescue Plan in the Senate, and I look forward to President Biden enacting this comprehensive relief that will help Michiganders emerge from this dark winter.”

Governor Gretchen Whitmer also shared a statement praising the plan:

“President Biden and Michigan’s Congressional Democrats have delivered critical aid to the people of Michigan and Americans nationwide with this investment in our families, communities, small businesses, and children. This bold bill will, among several other pieces, send $1,400 stimulus checks to 90% of households, extend $300 weekly unemployment benefits through September 6th, expand the Earned Income Tax Credit for working families, vastly increase the child tax credit, and offer much needed support for America’s small and mid-sized businesses, including a dedicated restaurant relief fund.”

When will the stimulus checks arrive?

Under the final version of the plan, individuals with an adjusted gross income up to $75,000 on last year's taxes will be eligible for the full $1,400 "survival checks." Payments will shrink for those who earned more, hitting zero at the $80,000 mark. The thresholds are double for married couples who jointly file their taxes. The cutoffs are lower than previous stimulus checks, with an estimated 12 million fewer Americans eligible this round.

One other change is the eligibility criteria for dependants, who now qualify for the payments at all ages.

As for the timeline, President Biden previously said stimulus funds will be released before the end of March. CNBC reports taxpayers who have received previous direct deposits from the IRS will see their funds first. Paper checks or debit cards will follow for those who do not have bank information on file with the U.S. Department of Treasury.

Unemployment assistance extended; new tax exemptions

Another key part of the relief bill is $300 in extended weekly unemployment assistance, which will continue through Sept. 6. The legislation also exempts $10,200 of unemployment funds paid in 2020 from federal taxes for households making less than $150,000.

Money for Michigan, counties and cities

• Overall the American Rescue Plan will send $10.3 billion to Michigan
• State and local governments will receive $5.7 billion
• Metro cities will receive $1.8 billion
• Counties will receive $1.9 billion

Other nationwide highlights

• Child tax credits: payments increase to $3,000 per child and $3,600 for children under six years old.
• Housing: $27.5 billion in emergency rental assistance funding, $10 billion in mortgage assistance and $5 billion for help with utility bills.
• Schools: Nearly $130 billion earmarked to assist K-12 schools with safe reopenings.
• Vaccines and testing: $47.8 billion for testing, contact tracing and mitigation efforts nationwide, plus $20 billion to stand up a national COVID-19 vaccination program quickly scale up distribution efforts.
• Small business grants: $28.6 billion to create a restaurant revitalization fund, $10 billion to support small business financing, and $7.25 billion to boost and expand PPP loans.
• SNAP/WIC: 15% boost to SNAP benefits through September, with expanded eligibility. WIC nutrition assistance will increase by $35 a month for fruits and vegetables.
• Transit: $30 billion in new investments for mass transit systems.
• Broadband: $7.1 billion in new funding to strengthen internet connectivity.