More money in the pockets of Americans

Families with kids, schools, and local governments benefit in $1.9 trillion relief bill

Contributed By:The 411 News

This week's Congressional approval and signing by President Joe Biden of the $1.9 trillion American Rescue Plan Act of 2021, H.R. 1319, has the promises of restoring the U.S. economy and defeating the coronavirus.

Immediately upon passage, newly elected U.S. Rep Frank Mrvan released details on how the ARP will benefit his constituents in northwest Indiana.

This is the first coronavirus economic recovery plan to give financial aid to local governments. Previous recovery bills during the Trump presidential term only allowed financial aid to states which they directed to local municipalities.

The plan includes direct relief to northwest Indiana cities and towns, including $84 million for the City of Gary, $53 million for the City of Hammond, $33 million for East Chicago, $17 million for Michigan City, and $7 million for Portage. This funding will aim to assist municipalities in addressing the economic impact of COVID-19, reinitiate government services, and provide premium pay to essential workers.

“I’m grateful to our Congressman Frank Mrvan for his ongoing commitment to the people of Gary and to our federal leaders who have put together what is essentially a game-changing stimulus package for the City of Gary,” said Mayor Jerome Prince. “This is a transformative moment for Gary, and we will make the most of this investment.”

Mayor Prince said the planning team will develop a comprehensive spending plan to get the most out of the relief funds. The planning team will study the legislation to ensure each step is in line with legislators’ intent.

This legislation includes direct relief to northwest Indiana school corporations, including $95 million for the Gary Community School Corporation, $46 million for the School City of Hammond, $38 million for City of East Chicago School District, $23 million for Michigan City Area Schools, and $12 million for Portage Township Schools.

Relief funds for charter schools will be determined by the formula for funds allocated to the state.

Another round of stimulus payments is included in the plan. Individuals 18 and over will receive an amount of $1,400 and $2,800 for married couples filing jointly.

Individuals earning up to $75,000 would get the full payments, as would married couples with incomes up to $150,000. Payments would decline for incomes above those thresholds, phasing out above $80,000 for individuals and $160,000 for married couples.

Dependents of tax filers would also receive the $1,400 payments. A family of 4 could receive a $5,600 stimulus payment. There is not an age limit on dependent status this year.

The plan has expanded yearly child tax credits from $2,000 a year to $3,000 for every child age 6 to 17 and $3,600 for every child under the age of 6.

The legislation also calls for the child tax credit payments to be delivered monthly instead of in one lump sum. The U.S. Secretary of the Treasury estimated that monthly payments could begin in July.

Also, families would get the full credit regardless of how little they make in a year, even if it is just a few hundred dollars.

Congressman Frank J. Mrvan stated Wednesday, “The COVID-19 pandemic has wreaked havoc on all of our lives, our mental health, and our economy, and I continue to grieve for all of the individuals and families in our nation who have lost someone special this past year. We remember these victims as we take action today to defeat this virus, get children safely back in schools, and make lasting investments to create more good-paying job opportunities and grow our economy.”

Story Posted:03/14/2021