Here's What's In The $1.9T COVID-19 Relief Package

By Staff Reporter
Posted on 03/10/21 | News Source: The Hill

President Biden is on the precipice of the biggest legislative win so far in his time in office: the signing of a $1.9 trillion COVID-19 relief package the House is expected to approve Wednesday.

The package is highlighted by the $1,400 direct payments to be sent to millions of households, an extension of unemployment benefits and funding for vaccine distribution.

But it includes much more than those provisions. Here’s a look at what else is in the bill.

Child tax credit

The bill would expand the child tax credit in 2021, a move that Democratic lawmakers and economists say could substantially reduce child poverty. Democrats are hoping to make the expansion permanent in future legislation.

The measure would increase from $2,000 to $3,600 the credit for children under 6 years old, and to $3,000 for older children. The additional amount would phase out for individuals with income above $75,000, head-of-household filers with income above $112,500 and $150,000 for married couples filing jointly.

The bill would also make the credit fully refundable, in an effort to ensure that the lowest-income households receive the full amount of the credit. It would make 17-year-olds eligible for the credit.

The IRS is directed to make periodic advance payments of the credit, so that households could receive the credit in installments throughout the year instead of having to wait to file their taxes to receive all the money.

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Earned income tax credit

The bill would expand in 2021 the earned income tax credit (EITC), which benefits low- to moderate-income households.

It would expand the eligibility and amount of the credit for workers without children and allow married but separated spouses to claim the EITC on separate returns in certain circumstances. It also would allow taxpayers to use their 2019 income for purposes of the credit instead of their 2021 income, which could help people who have lost income due to the pandemic receive larger credit amounts for 2021.

Both the portions of the bill on the earned income tax credit and the child tax credit would direct the Treasury Department to make payments to U.S. territories to help reimburse the cost of the credits in those jurisdictions.


Child care

The bill would provide about $15 billion to the child care and development block grant program, which provides grants to states to help low-income families afford child care. States would be able to use the funds to help essential workers regardless of those workers’ income. The measure also would provide about $24 billion for states to provide grants to child care providers.

Additionally, the bill would expand in 2021 the child and dependent care tax credit and would increase the amount of a tax exemption for employer-provided dependent care assistance. Read more at The Hill