After several cuts, Senate approves American Rescue Plan Act

The U.S. Senate passed President Biden’s $1.9 trillion COVID-19 relief bill, the American Rescue Plan Act, on a party-line vote of 50-49. 

The National Lumber and Building Material Dealers Association (NLBMDA) reports that the Senate amended the House’s COVID relief package to remove the $15 federal minimum wage provision. Other changes include supplemental unemployment benefits being brought back down to $300 per week through Labor Day and lowering the phase-out threshold for direct payments to individuals. 

The bill now heads to the House where it is expected to receive a final vote on March 9. 

Here is a summary of the major provisions included in the Senate bill, as outlined by the NLBMDA:

• Supplemental Unemployment Benefits: Keeps supplemental unemployment benefits at $300 per week through September 6. The first $10,200 in unemployment benefits received in 2020 by households earning $150,000 or less would be nontaxable. The House bill had originally provided $400 per week in supplemental unemployment benefits through the end of August.
• Federal Minimum Wage: Removes the House’s $15 federal minimum wage provision.
• Employee Retention Tax Credit: Extends the employee retention tax credit through December 31, 2021. Modifies the credit so that it can only be claimed against the hospital insurance tax beginning after June 30, 2021.
• Paid Sick and Medical Leave: Extends tax credits for employers who voluntarily offer their employees paid sick and medical leave benefits related to COVID-19 through September 30. Increases the amount of wages for which an employer may claim the paid family credit in a year from $10,000 to $12,000 per employee and increases the number of days for which self-employed individuals can claim the credit from 50 to 60. Expands eligible leave to include time taken to receive or recover from a COVID-19 vaccine.
• Small Business Relief: Adds over $7 billion to the Paycheck Protection Program (PPP) and $15 billion to the Economic Injury Disaster Loan (EIDL) program.
• COVID-19 Vaccines and Testing: Provides $75 billion for COVID-19 vaccines, testing and tracing.
• Direct Payments to Individuals: Includes $1,400 stimulus payments for individuals who earn up to $75,000 and married couples who earn up to $150,000. The payments phase out after $80,000 for individuals and $160,000 for couples.
• Child Tax Credit: Expands the Child Tax Credit for 2021 to $3,000 per child ($3,600 per child under age 6). Children age 17 are now eligible. The tax credit will be fully refundable.
• State and Local Government Aid: Provides $350 billion for state and local government aid.

A recent poll question conducted by HBSDealer showed 55% of respondents opposing the latest stimulus bill.