THE AMERICAN RESCUE PLAN (ARP), signed into law by President Biden on March 11th, represents a significant investment in children and families at a critical time of need. The headline is incredible – child poverty in our nation could be cut in half.
Many provisions in the plan will make a significant difference to the health and well-being of Maine children and families and we look forward to engaging in the implementation of funding in our state. The child tax credit expansion alone is expected to lift 10,000 Maine children from poverty and impact many more. To support child care, the law includes $40 billion, with an estimated $119 million coming to Maine. Elementary and secondary schools will receive additional funding to reopen safely. Families will also benefit from stimulus payments, expansions to child nutrition programs, housing assistance, health care coverage and more.
Though the ARP provisions are temporary, they provide a framework for future policy discussions about what it takes to improve equity and ensure that all families have the ability to thrive. This moment is an opportunity to demonstrate how family-friendly policies and programs are a sound investment in the improved well-being of all Americans.
KEY PROVISIONS AND FUNDING FOR MAINE
Child Care- $24 billion for Child Care Stabilization grants, $1 billion for Head Start, and $15 billion for the Child Care and Development Blog Grant program. This money will help support both providers and parents who have struggled during the pandemic. The estimated funds for Maine are $119 million.
Tax Credits – In 2021, the Child Tax Credit will be $3,000 per child over age five and $3,600 per child under age six. It will be fully refundable, so that those with the least earned income - and thus the greatest need for financial support - will also benefit. This change alone will cut child poverty by about 45 percent, and combined with other provisions in the law, child poverty will be reduced nationally by over 50 percent. The law also expands the Child and Dependent Care Tax Credit to $4,000 for one child or $8,000 for two or more children. Importantly, this tax credit is also fully refundable. In Maine, 229,000 children or 91 percent of all children, will benefit from the expansion of these tax credits.
K-12 School Funding- The Elementary and Secondary School Education Relief (ESSER) Fund received $122.74 billion and public K-12 schools received $125 billion to safely reopen and operate. For Maine, that amounts to $540,077 in additional funding to help schools during the pandemic.
Child Well-being - $3 billion for Individuals with Disabilities Education Act (IDEA), which includes early intervention services for young children with disabilities. There is also $150 million for home visiting programs, and $1 billion for TANF for basic assistance for low-income families.
Nutrition- The SNAP benefit increase of 15 percent will extend through September 2021. Pandemic EBT is extended through the summer, providing money to replace meals 22 million children would otherwise receive through school meals.
Housing- $21.55 billion in Emergency Rental Assistance for rent and utilities for families who need support. In Maine, that amounts to an additional $150 million in housing assistance. The law will also help families with costs associated with housing, like additional money for home heating. In Maine, the LIHEAP program will receive $84 million.
Earned Income Payments – $1,400 payments to every individual with a Social Security Number (including children whose parents do not have one). This allows for an additional 2.2 million children with SSNs to receive payments in this round of federal relief. The payments phase out for higher income households. In Maine, 659,989 households will receive this support.
Unemployment- The law extends the Federal Pandemic Unemployment Compensation (FPUC) to $300 until September 6th. In Maine, the extension of benefits will impact 27,748 workers experiencing unemployment.
Healthcare – The law invests $35 billion for premium subsidy increases for individuals who buy coverage on the ACA marketplace. It removes the 400 percent federal poverty level limit on subsidy eligibility. And it subsidizes 100 percent of COBRA premiums. There is also an option for states to extend Medicaid coverage to twelve months for women postpartum. ( Health Provisions in House Relief Bill Would Improve Access to Health Coverage During COVID Crisis )
Other provisions in the law providing critical support to children and families, include funding for vaccines, testing, health workforce, state aid, and extension of paid sick and FMLA leave tax credits. This is an important down payment on the health and well-being of families across our country who continue to struggle through this pandemic and resulting economic crisis. The next step should be working to make many of these important supports permanent, for the good they will do to strengthen American families and our shared economy.
75,000 Children under 17 left out of the full $2000 Child Tax Credit
10,000 Children under 18 lifted above the poverty line
21,000 Children under 18 lifted above or closer to the poverty line
229,000 Children under 18 who benefit
91% Total share of Maine children under 18 who benefit