Statement of Administration Policy: H.R. 1319 – American Rescue Plan Act of 2021 (February 26, 2021)

Summary

In this February 26, 2021 Statement of Administration Policy, the Office of Management and Budget says the Administration strongly supports House passage of H.R. 1319, the American Rescue Plan Act of 2021. The statement says the bill funds community vaccination sites, testing and tracing, and school reopening, and provides eligible Americans a $1,400 payment on top of the $600 payment of December of 2020. It lists expansions of the Child Tax Credit and Earned Income Tax Credit, extended unemployment benefits, a $15 per hour minimum wage, rental and mortgage assistance and a SNAP benefit increase. For small businesses it funds the Paycheck Protection Program, the EIDL Advance program and the Shuttered Venue Operators Grant Program, and creates a hospitality industry program and a Community Navigator pilot program.

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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503

February 26, 2021
(House Rules)

STATEMENT OF ADMINISTRATION POLICY
H.R. 1319 – American Rescue Plan Act of 2021

The Administration strongly supports House passage of H.R. 1319, the American Rescue Plan
Act of 2021. This bill is based on the plan that the President proposed to the Congress in
January. It provides the tools and support critical to meet the moment and tackle the urgent
public health and economic crises the Nation faces as a result of COVID-19.

The bill provides the funding necessary to support the Administration’s Government-wide
strategy to combat COVID-19. This includes funding to set up community vaccination sites
nationwide, scale up testing and tracing, eliminate supply shortage problems, invest in high-
quality treatments, address health disparities, and ensure workplace health and safety
protections. The bill also extends tax credits for employers that provide workers with paid sick
and family leave to contain the spread of the virus. Because the pandemic has created
unprecedented challenges for students and parents, with families of color disproportionately
impacted, the bill provides K-12 schools and institutions of higher learning with the resources
they need to reopen safely and stay open, as well as to address the academic, social and
emotional needs of students.

The bill also delivers immediate relief to workers and families bearing the brunt of the public
health and economic crises. The bill finishes the job of providing Americans with a $2,000
economic impact payment by providing eligible Americans with a $1,400 payment in addition to
the $600 payment provided in December of 2020. The bill also expands the Child Tax Credit
and Earned Income Tax Credit on an emergency basis, extends key emergency unemployment
benefits, raises the minimum wage to $15 per hour, and stabilizes pensions for Americans who
participate in multi-employer pension plans. To deal with the acute housing and hunger crises
caused by the pandemic, the bill provides Americans in need with rental, mortgage, and
homelessness assistance and extends the emergency benefit increase in the Supplemental
Nutrition Assistance Program (SNAP). To help families cope with child care challenges as a
result of the pandemic—including the significant reduction in female labor force participation—
the bill provides relief to hard-hit child care providers and temporarily increases tax credits to
help families cover the cost of child care. And the bill lowers health care costs and expands
health care access during this once-in-a century pandemic by increasing Affordable Care Act
premium tax credits, providing subsidies for continuation health coverage (COBRA), ensuring
adequate funding for veterans’ health, and providing critical funding to help address the
unprecedented mental health and substance use consequences of the pandemic.
The bill also provides critical support to struggling communities and businesses. For small
businesses, the bill includes funding for the Paycheck Protection Program (PPP), the Economic
Injury Disaster Loan (EIDL) Advance program, the Shuttered Venue Operators Grant Program,
and a program that finances innovative small businesses. The bill also establishes a new
program to help struggling businesses in the hospitality industry and a new Community
Navigator pilot program to increase awareness of, and participation in, COVID-19 small
business relief programs. To help farmers struggling with the effects of the pandemic, the bill
includes funding to address weaknesses in our agriculture food systems. In addition, the bill
provides relief for hard-hit public transportation agencies, as well as funding to directly support
airline industry employees. The bill provides support for police, firefighters, EMTs, and other
essential workers through flexible funding for State, local, and territorial governments. Finally,
the bill provides Tribal governments with critical support to address persistent inequities in
COVID-19 transmission, hospitalization, and death, while improving economic conditions and
opportunity.

The bill would allow the Administration to execute its plan to change the course of the COVID-
19 pandemic. And it would provide Americans and their communities an economic bridge
through the crisis. The Administration urges the Congress to act swiftly to pass the bill in order
to deliver to American communities the urgent support and relief they need.

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