ADDITIONAL FINANCIAL RESOURCES: AMERICAN RESCUE PLAN ACT 2021

 

On March 11, the President signed the $1.9 Trillion Stimulus Relief bill into law (the American Rescue Plan Act of 2021). In addition to $1400 stimulus checks Americans are receiving this week, billions will be distributed to states and cities across the U.S.

What many people don’t know is that most of the pandemic assistance can be obtained at a State and Local level. Of the $195.3 billion allocated to states, $500 million in aid will be distributed to each state. Here are several assistance programs and how to take advantage of them.

ADDITIONAL STIMULUS BILL FINANCIAL RESOURCES FOR U.S. CITIZENS

►   Extended PUA and FPUC (Federal Unemployment Benefits)

►   Raise Your Weekly Unemployment Benefits

►   Get Food / Rent / Mortgage / Utilities Assistance for COVID

►   Collect Hazard Pay (especially essential works and public safety)

►   Receive Restaurant and Business Recovery Grants

►   Major Increase in Child and Dependent Care Tax Credit

►   Child Care Tax Credit Increased

 

First you should know that PUA (Pandemic Unemployment Assistance) has been extended through September 6th, 2021. No need to reapply. Just log in every two weeks to request those weeks. The same goes for FPUC pay (Federal Pandemic Unemployment Compensation) passed under the Cares Act last year, which has also been extended through September 6th.

*Also, up to $10,200 of unemployment you received last year is Tax-Free.*

Here is how to apply for and receive the additional funding available that I listed above:

To raise your unemployment benefits, send your 2019 Tax Return to your State Unemployment Office and say “I want to see if I qualify for more weekly benefits.” Most states only pay you the base minimum unless you ask for more.

If you were unemployed for 30 weeks in 2020 during the pandemic and you made $18,000 in 2019 you’ll get an extra $50/week in your unemployment pay. If you made $25,000 you’ll see an increase of $100 per week. And if you made over $30,000 in 2019 you’ll raise your unemployment benefits by $300 extra a week!

There is a Food benefit in the U.S. called SNAP (Supplemental Nutritional Assistance) thru the Department of Agriculture. If your household income is under $45,000 annually and you meet certain requirements, a family of 4 can get up to $1600 a month in food assistance, which is $16,000 a year!

You can learn more about SNAP and how to apply here:

https://www.benefits.gov/benefit/361

The Rescue Act provides $40 billion of rental and mortgage assistance, which includes $21 billion for emergency rental assistance, $5 billion for emergency housing vouchers, $750 million for tribal housing needs and $100 million for rural housing.

To apply for Rent or Mortgage Assistance:

Contact your city, county or state Housing Authority (or try all three). Tell them you need rental or mortgage assistance due to COVID. If you qualify, you can receive 3-6 months of rent ($5,000-$10,000 benefit).

To receive Utilities assistance:

Contact your local utility company and say you need utility assistance because of COVID.

You can also seek assistance from charities such as United Way, Salvation Army, Catholic charities like St. Vincent de Paul or other church based organizations.

How to Benefit from Hazard Pay:

Hazard Pay can be obtained on a business, state or local level. Businesses typically receive money for this in the case of disasters. Even more was received during the pandemic than in the past for this type of pay. Some cities, counties and states had this money for months, but had not yet distributed it so there could still be money available in your local area – whether you are an employer or employee.

To receive Federal Hazard Pay, if you were an essential worker, government employee or worked in public safety throughout the pandemic last year through the present time, you can receive an additional $3 an hour hazard pay up to a maximum of $10,000 as long as you earned less than $100,000 last year. If you earned over $100,000 you can still receive up to $5,000 in hazard pay.

In Vermont, the state is still receiving applications for up to 40,000 people which they announced this past Friday.

Google “Hazard Pay” or “Bonus for Essential Workers” along with your state, city or county and these resources should come up. However, do act quickly as these payouts can run out fast.

In Roanoke, VA they were offering hazard pay to public safety employees and essential workers at an additional $3 an hour up to $2,000.

You just have to check in your local area to see what is available or ask your employer (note: employers often defer to the term ‘bonus pay’ vs. ‘hazard pay’ as it sounds more positive).

Special Assistance for Restaurants and Business Owners:

For businesses, the Rescue Act has added $7.25 billion to the Paycheck Protection Program (PPP). $28.6 billion was allocated to the Restaurant Revitalization Fund, administered by the Small Business Administration (SBA).

Eligible restaurants will receive aid in the form of grants up to $10 million for restaurant groups and $5 million for individual eateries. In addition, restaurant and small business owners are eligible for long-term, low-interest rate loans through a $15 billion Emergency Injury Disaster Loan (EIDL) program.

There is also reportedly a new $5,000 grant that will be available under EIDL in the coming weeks for small business owners.

Restaurants can calculate their losses by subtracting 2020 revenue from 2019 revenue.

Other businesses who lost 15-30% last year in revenue can obtain a $5,000 grant (if less than 10 employees). It appears as though this business loss grant may favor women owners.

It does not look like these grants have yet gone live. I will do my best to update you here when they do. Again, these are being handled by the Small Business Administration (SBA).

Child and Dependent Care Tax Credit:

Low and middle-income families will be eligible for a tax credit covering half of their child care expenses in 2021, up to a maximum credit of $4,000 for one child or dependent and $8,000 for two or more children or dependents.

Child Tax Credit Expansion:

The Child Tax Credit is being increased from $2,000 to $3600 for each child under age 6 and $3,000 for each child age 6 to 17. While millions of low income families were excluded from claiming this credit previously, now all low and middle-income families will get the credit.

Beginning July 2021 parents who qualify for the credit will receive $300 a month for newborns thru 5 years old and $250 a month for children ages 6-17.

Please pass this information along to anyone you know who is struggling at this time and could really use financial assistance.