The Americans have suffered under the COVID-19 pandemic. The government had to come up with rescue policy to help the nation recover from the adverse effects of the pandemic. The American Rescue Plan Act policy is a $1.9 trillion coronavirus relief package aimed at assisting the US in recovering from the adverse health and economic repercussions COVID-19 pandemic. The purpose of this paper is to discuss the background information regarding the policy plan and provide an argument to the supervisor on the benefit of the policy to my organization. The policy paper will also will also provide a counteract argument why other officials disagree with my stance about the American Rescue Plan Act of 2021.
Background information
One of the most critical problems facing Joe Biden after his election in November 2020 was to handle the COVID-19 pandemic. People were more impatient than ever for a stimulus after the government took more than seven months without any federal aid to the people. The silence led to a long-heated debate between Democrats and Republicans on how to deliver relief to the people and help them recover from the economic and social crisis caused by the pandemic. The Coronavirus pandemic became one of the president's administration’s top goals during his first 100 days in office. Biden eventually drafted a new pandemic assistance measure, named the American Rescue Plan Act, which was presented to the Senate for changes and later is adopted as a policy to address the pandemic economic and social crisis.
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The COVID-19 pandemic and the ensuing economic crisis have harmed American workers' health and well-being. Every day, thousands of Americans, the majority of them being low-wage earners, immigrants, or people of color, risk their lives to keep the country running throughout the pandemic. And, as a result of the pandemic, an estimated more than 9.7 million people lost their jobs, with another more than 4 million being temporarily stopped from working, and their salaries too stopped for a period extending up to six months or more (Adashi & Cohen, 2021). Without increased government support, the economic and public health issues are likely to worsen, putting our national immunization program at risk at a critical juncture.
The US Internal Revenue Service and Treasury Department ensures that Americans get immediate and direct help during the current phase of the pandemic through the third round of Economic Impact Payments. According to U.S Department of Treasury (2021), an estimated 100 million payments to impact the economy have been distributed thus far, ensuring that millions of Americans and their families would receive more than $242 billion in much-needed relief once the American Rescue Plan's adoption is implemented . Unlike previous payments made to re-boost the economy, the American Rescue Plan calls for a 2021 “true-up” increased monetary amounts according to information-filled 2020 tax returns received mid-2021 by the IRS department. Additionally, the Economic Impact Payment would ensure that families in America and organizations receive more financial support in 2021.
Individuals and married couples who qualify will receive the economic Payment of up to $1,500 for themselves and $2,800 for their dependents. Families also get payments for the dependents filled on the tax returns and not just for those qualifying children below 17 years. That is an improvement from previous similar monetary payment impacts undertaken by the government . The policy aims at improving the incomes for singles and married people by filing a separate tax return, where those earning not more than $ 75,000 will generally qualify for the total amount. To harmonize the payment schemes, those with earnings over certain limits will see their payments slashed.
To ensure that millions of rural poor, homeless, and other underprivileged Americans get Economic Impact Payments, the Treasury Department, in collaboration with the Internal Revenue Service, continues to enhance outreach. That involves establishing and maintaining new and ongoing ties with homeless people, legal assistance clinics, and distributing Economic Impact Payment data in many languages to enhance transparency. The American Rescue Plan will reverse the pandemic's trajectory and provide urgent relief to American workers. The proposal will pave the way for a more fair economic recovery while also reducing child poverty. This bill is one of the most progressive in history, and it will pave the way for a more equitable economic recovery.
Benefits of the Policy
State and municipal fiscal recovery funds are included in the policy plan. In the aftermath of the COVID-19 disaster, state, municipal, and organizations in America have faced unprecedented hardship. The demand for services such as medical facilities, vaccination centers, and assistance to struggling small organizations has risen. Yet, the local and state have dropped due to the ongoing economic crisis caused by the pandemic. During the pandemic, the public sector lost jobs, including 1 million schoolteacher layoffs, and organizations laid-off employees and went on a recess.
Additionally, municipalities have been forced to choose between laying off firefighters, educators, or other frontline personnel. Laying off a considerate number of service providers will make municipal governments fail to deliver essential services (Bianchi et al., 2021). On our side, I believe we can use these funds to support our members and their families. As an organization, we can apply and provide all the required data to the authorities and play a vital role in ensuring that most of our needy team members get the help. In return, this will boost our organization's performance, as we will have the most negligible pandemic effects on our employees.
The policy also provides a capital projects fund to the Americans. The COVID-19 disaster exposed significant flaws and disparities in the United States' infrastructure. Some communities adopted to the pandemic by providing remote education, work, or healthcare options. In contrast, others lacked the infrastructure to adapt to the pandemic, exacerbate existing inequalities, and compound the pandemic's disruptions, with long-term consequences for American families (Carso, 2020). The digital divide and the lack of underlying conditions that enable network connectivity and access have been a particularly significant in infrastructure challenge. As more and more aspects of business and school shift online, many American families may be left behind.
After identifying these difficulties, the American Rescue Plan allocates $10 billion to states and organizations for capital investments like internet infrastructure. The Capital Projects Fund helps address the challenges brought to light by the pandemic, particularly in moderate and low income and rural communities, by ensuring that these communities have access to modern infrastructure inclusive of internet connection (Juarez, 2021). Our organization can benefit from this aspect by encouraging our workers to work directly from home. The internet infrastructure will be well connected and provided by the American Rescue policy. That will give a fantastic opportunity to perform our responsibilities from home, while also protecting our workers from possible exposure to the virus.
The policy's ability to provide unemployment compensation may help our organization. As a result of the COVID-19 outbreak, millions of Americans lost their jobs and filed for unemployment benefits across the country. The American Rescue Plan exempts middle- and lower-income people from paying income taxes on the initial $10,200 in unemployment benefits they receive in 2020 (Carson, 2021). Our workers can benefit through the unemployment programs and can get standard payments from their state unemployment insurance fund as they are eligible for tax reduction. This bill will bring tax relief to our workers who lost their jobs and receive unemployment benefits. This way, our workers and other Americans will use their benefits to meet necessities during the COVID-19pandemic.
Our company may rely on the homeowner assistance fund to help our employees. The unfolding economic adverse impact of the COVID-19 catastrophe has forced Americans to choose between paying their mortgages and meeting other necessary responsibilities. That was particularly true for low-income and minority groups, which bore the brunt of the crisis. One out of every ten homeowners in the United States is behind on their mortgage payments (Gruber et al., 2017). A similar case is evident in our organization, where we have several employees serving their mortgage loans. The new policy will help our members and other Americans stay and keep their homes without fear of losing the property. The policy Plan allocates roughly $10 billion to states and organizations to help the most vulnerable homeowners (Posen, 2021). The law prioritizes homeowners who have faced the most challenges based on national and local income indicators. Delinquent mortgage payments are among the eligible funding uses, allowing our workers to take a step toward home stabilization. The strategy will help our members service their mortgages and increase shelter capacity, something that will prove to be of long-term benefits to our members.
Our firm may be eligible for emergency rental assistance and use it to support our employees. The COVID-19 pandemic has had the unintended consequence of making household stability a health problem as well as a financial one. Several organizations have begun expanding rental support programs to help at-risk households as the country found itself on the crisis's adverse effects. The appropriations package passed in December allocated $25 billion in federal relief to support such programs (Juarez, 2021). The policy plan roughly increased the initial financing to increase the impact of the current rental program, adopting additional efforts to lessen the financial cost of the pandemic. If the organization remains first and grabs this opportunity, it will positively impact our members as they will get all the much-needed house aid from the rental house support programs.
The regulation provides a state small business program that our organization can use to address the pandemic's problems. It's a common understanding that the pandemic has had a disproportionately negative impact on small companies globally and in America, particularly those run by women, minorities, and the underprivileged. Every community deals with the terrible reality of local businesses being closed, resulting in furloughed or laid-off friends and family members. Nationally, small business revenues have gone down by 32%, and an estimated 400,000 businesses have closed permanently (Robert Daniels, 2020). Many companies are clinging to life after a year of a public health catastrophe. This policy contains plans to give crucial sections to help small businesses in America, allowing for the rapid deployment of money and support these enterprises not just survive but thrive. That is an essential feature that our organizations and members can benefit from.
In addition, the policy plan offers funding to state small company support and capital access initiatives, as well as provide collateral, make loan participation more straightforward, and allow credit guarantee programs. It would provide technical help and assistance as well as strengthen state venture capital programs. The funds from this programs will help our organization re-energize and get back on course towards achieving the mandate and objectives of each program we are set to launch to benefit Americans.
The Rescue Plan policy also lays the groundwork for the current and future of the American economy, laying the groundwork for an equal economy that is inclusive of all Americans. The payments are phased down based on income, persons who need the stimulus the most are prioritized, while people who don't need the stimulus checks can't take advantage of the system to supplement their income (Carso, 2020).These amendments to the Rescue Act are aimed squarely at low-income Americans. They will help the economy become more inclusive of low-income Americans in the future, allowing them to escape poverty.
Why other officials disagree with my stance about the American Rescue Plan Act of 2021.
Local governments have done critical, life-saving work throughout the pandemic, but resources have been stretched thin. This next round of money presents new problems, leading to some officials disagreeing with me about the policy's merits. The first reason is the difficulty in determining eligibility and granting permission. Available monies must be given quickly to people who are in desperate need of help. However, it's equally critical to verify the recipients' eligibility and the money's ability to be given. When there is a sense of urgency, it is more likely that funds will be distributed to ineligible candidates or for prohibited objectives. The American Rescue Plan Act mandates specific eligibility criteria and reporting requirements (Shah, 2021). On the other hand, officials must balance a speedy financial distribution and verification processes to verify that the proper beneficiaries are accounted for. If this requirements are not adequately adhered to when distributing the funds, it forms a loophole in which it will give members of my organization the confidence to disagree with my opinion .
Another source of contention is that the Act omitted several crucial advantages, limiting its ability to assist more individuals. The policy did not accept to increase the minimum wage from the current $7.25 to the proposed $15 per hour (Posen, 2021). The policy also reduced unemployment benefits and reduced the total amount that local and state governments are required to give out. Removing the $15 minimum wage raise from the Rescue Plan is the most disheartening because the minimum wage presently does not offer adequate income that can be considered reliable for the minimum wage earners. These portions of the Plan eliminated would have aided the country and prepared the stage for a more robust economy following the pandemic. It is due to the omission of these critical privileges that might make some members disagree with me. Individual members have different reactions and especially when salaries are mentioned. Improving salary income for minimum wage would consequently influence employers to increase wages for their workers. Therefore, it’s out of this reasoning and thinking that can make members react otherwise to my argument and the general view of the rescue policy.
Republican support for the American Rescue Plan was likewise insufficient. Many Senate Republicans did not agree with everything in the bill, and there were still some differences with Senate Republicans after the amendments were made. During the voting, many Senate republicans proposed numerous revisions to the Plan. Sen. Susan Collins suggested that Biden's bill should be replaced with a 650-billion-dollar version, similar to the one passed in December, while Sen. Marco Rubio claimed that financing should be tied to school reopening measures (Bianchi et al., 2021). Senator Mitt Romney also proposed slashing billions of dollars from the effort, primarily targeting states with higher-than-expected revenue despite the pandemic. The split between the republican and the Democrats of this policy implementation is a possible source or reason why some officials may disagree with me.This foundation may allow certain officials have different opinions, and consequently end up to disagree with me.
Conclusion
The rescue policy plan can be concluded as the president's right and decisive move to support the Americans during these difficult times of the pandemic. The policy will benefit different people of different social statuses as they would receive government funding by implementing the rescue plan. It is anticipated that the approach will be instrumental in rectifying the country’s economy in the long run, with several provisions aimed at assisting low-income earners and help those who were laid off cope with the consequences. Regardless of removing some crucial guidelines such as the one on minimum wages, more Americans will still receive stimulus cheques that will prepare the nation’s economy for the future and help overcome the current economic crises.
The Rescue Plan allocates $21.6 billion to local and state governments to help families pay their rent and other utilities during the pandemic. States and organizations will be better equipped to deliver relief and support to individuals in need due to the American Rescue Plan. The extra funds will be used to supplement already in place program structures and allow money to be transferred efficiently and promptly to on-the-ground disaster programs and guaranteeing that the country's most vulnerable households receive a fair amount of aid.
In addition, the Plan allocates $15 billion to the Emergency Injury Disaster Loan program, which would aid small enterprises. The Plan also includes a $25 billion grant program exclusively for restaurants and bars and other small-business incentives. Besides assisting families that are adversely and financially impacted by the epidemic, the policy also helps the healthcare industry by providing subsidies for Medicare and health care and providing $14 billion to be used for vaccine research, distribution, and development. It will also spend over $50 billion on contact tracing, better testing, and mitigation and investing some of the funds in labs and testing facilities. A nationwide immunization program will receive $20 billion, and the Federal Emergency Management Agency will receive $50 billion under the Plan. The comprehensive rescue policy offers the economy a critical infusion and provides funding to pay for essential survival expenditures. Our members and the organization will benefit significantly from this policy. I, therefore, believe that we should support ad seek the funds for those who are eligible.By doing so, our organization will overcome the economic effects brought about by the pandemic.
References
Adashi, E. Y., & Cohen, I. G. (2021). The American Rescue Plan Act of 2021. JAMA .
Bianchi, F., Fisher, J. D., & Melosi, L. (2021). Some inflationary scenarios for the American Rescue Plan Act of 2021. Chicago Fed Letter .
Carso D. (2020). Rescue Plan Issues: Procedure and Structure; Distributional Issues. Rescue of Business in Europe .
Carson, J. (2021). Share of Childless Adults Eligible for EITC Triples Under American Rescue Plan.
Gruber, J., Jensen, A., & Kleven, H. (2017). Do people respond to the Mortage interest deduction? quasi-experimental evidence from Denmark. https://doi.org/10.3386/w23600
Juarez, M. (2021). The American Rescue Plan and the Arts: Will Creatives Receive the 'Once-in-A-Lifetime-Funding?'. SSRN Electronic Journal .
Posen, A. S. (2021). Making the Most of Their Shot: The American Rescue Plan Package. Intereconomics , 56 (2), 127-128.
Robert Daniels. (2020). Report on the Economic Impact of Coronavirus Disease (COVID-19) on Latin America and the Caribbean.
Shah, S. (2021). Children and the American Rescue Plan: countering COVID-19 vaccine hesitancy during a global pandemic. Pediatric Research .
U.S. Department of the Treasury. (2020). FACT SHEET: The American rescue plan will deliver immediate economic relief to families . Front page | U.S. Department of the Treasury. Retrieved June 24, 2021, from https://home.treasury.gov/news/featured-stories/fact-sheet-the-american-rescue-plan-will-deliver-immediate-economic-relief-to-families
