We have been receiving several questions on the American Rescue Plan which was passed earlier this month in Washington, D.C. There is no question that many families and businesses are struggling for over a year now due to the fallout from COVID-19.
I wanted to provide you with some information that I hope you will find helpful, we will also keep you updated on how all of this might impact taxpayers as the weeks and months go on. Of course we all know this will come at a very high cost. How fast and when is the question.
Following passage of the American Rescue Plan Act (ARPA) federal agencies have begun implementing the parts of the bill within their jurisdiction. Here are a few highlights from that implementation.
Direct Payments: On March 17th, the IRS has released the first batch of Economic Impact Payments, accounting for $242 billion in payments. A second batch of funding went out this past week. Funding will continue to go out on a weekly basis.
State and Local Aid: The Treasury Department has not released implementation guidance on the State and Local Fiscal Relief Fund. They anticipate releasing guidance in the coming week with detailed allocations and information on use of funds
Education Funding: This week, Connecticut received $737,279,916 in its education allotment through the American Rescue Plan Act. This represents 2/3 of funding they are entitled to under the bill.
Economic Injury Disaster Loans: Starting the week of April 6, 2021, the Small Business Administration (SBA) is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000. Existing borrowers will also be able to request an increase beginning on April 6. The SBA will provide updated instructions in the coming days. For more information visit. For more information visit the SBA’s website here.
PPP: Last week, the Senate voted to extend the deadline for filing PPP applications to May 31st.
FEMA: Attached, please find an update from FEMA on their COVID response work in Connecticut and the New England region.
Restaurant Aid: The Biden Administration announced they plan to open the new $28.6 billion restaurant aid program started in the ARPA in April.
THE AMERICAN RESCUE PLAN ACT OF 2021 (ARP): INITIAL STATE ALLOCATIONS, ESTIMATES
The Office of Fiscal Analysis continues to examine the federal response to the current pandemic. The information in this document outlines the estimated grants for Connecticut that have been identified in the Federal Funds Information to the States (FFIS) briefings 21-15 and 21-16 with additional information obtained from a summary of legislation produced by NCSL. Please note some of this information is preliminary and is still contingent on further federal guidance.
As additional details become available, OFA is regularly updating this report. Please click here to access the most recent version.