Called the “American bailout”, Joe Biden’s economic stimulus plan was adopted by Congress on Wednesday March 10. It includes aid totaling 1,900 billion dollars (1,595 billion euros). Here are the flagship measures of this third major spending program of the United States to fight against the effects of the Covid-19 pandemic.
- Generous checks to families but lower limit
The first stimulus package of the Biden era, it must provide immediate aid to the Americans. People earning less than $ 75,000 (62,981 euros) per year and married couples whose income does not exceed 150,000 dollars (125,800 euros) per year will soon receive checks of 1,400 dollars (1,175 euros) per person. . The bill also provides for $ 1,400 per dependent.
In the amended version, payments gradually decrease before disappearing for individuals with incomes reaching $ 80,000 and $ 160,000 for married couples, income ceilings revised downwards. According to the American press, approximately 400 billion dollars (336 billion euros) will be distributed to millions of Americans. These checks will complement those for 600 dollars (503 euros) sent as part of the 900 billion dollars (755 billion euros) plan adopted at the end of December.
- Amount unchanged for unemployment benefits
The bill passed by the Senate extends until September 6 the payment of additional unemployment benefits of 300 dollars (252 euros) per week, which was to expire on March 14. Democrats had proposed an amount of $ 400 per week until August 29, which was therefore abandoned.
- Child care tax credit
The Biden administration targets the poorest families by giving them substantial tax credits. The child tax credit is currently up to $ 2,000 (€ 1,680) per child under 17.
The bill provides for 3,600 dollars (3,000 euros) for children up to 5 years old and up to 3,000 dollars (2,500 euros) for children 6 to 17 years old. Tax credits will be available to all Americans with children regardless of their income.
Some 15 billion dollars (12.5 billion euros) are spent on vaccination, 50 billion (42 billion euros) for testing and monitoring as well as 10 billion (8.3 billion euros) for vaccine production. The Biden administration repeats it: Without widespread vaccination, the economy will not fully recover from the crisis into which the pandemic has plunged it. Mr Biden has set a goal of administering 100 million doses in the first 100 days of his tenure.
- Nurseries, schools, colleges, high schools and universities
Schools, from kindergarten to high school, will benefit from a budget of 126 billion dollars (105.7 billion euros) and 39 billion (32.7 billion euros) will be devoted to nurseries. Many establishments remained closed for a year for lack of being able to set up health protocols (ventilation for example) to accommodate students. The plan also includes 40 billion for universities.
- States and local communities
The envelope provides for some 350 billion dollars (294 billion euros) in favor of States, local communities as well as tribes and territories. It was the big bone of contention with Republicans, who believe this aid is due. “Waste”. States were particularly affected from 2008 to 2010 during the financial crisis. However, fears that the Covid-19 pandemic will also be devastating do not appear to materialize as the federation of state budget employees has calculated that revenues have fallen by only 1.6% in fiscal year 2020. compared to the previous year.
Among the states surveyed during fiscal year 2021, eighteen even saw their revenues exceed their forecasts despite the crisis, against fourteen which recorded revenues lower than their forecasts and six which reached their projections.
The restaurant sector, one of the sectors most affected by the restrictive measures to contain the pandemic, will benefit from a budget of 25 billion dollars (21 billion euros). The proposal to include in law increasing the minimum wage to $ 15 – from $ 7.25 now – has been dropped.
