US House Approves $1.9 Trillion Relief Bill to Fight Poverty and Inflation

UTC by Daria Rud · 3 min read
US House Approves $1.9 Trillion Relief Bill to Fight Poverty and Inflation
Photo: Depositphotos

The $1.9 trillion relief bill is the US’s sixth relief package since the beginning of the coronavirus pandemic. The House first passed it at the end of February, but it had to return to the House after Senate proposed their changes. 

On Wednesday, the US House of Representatives passed the $1.9 trillion coronavirus relief bill and sent it to President Joe Biden’s desk for his signature.

The package is expected to fight poverty and temporarily high inflation that may occur after most Americans get vaccinated. Without fear of getting infected, they will start traveling again and spend money the way they did prior to COVID-19 restrictions.

As the nonpartisan Urban Institute estimated, the bill would reduce the poverty rate to 8.7% this year, in comparison with a 13.7% national rate without the bill.

Notably, the $1.9 trillion package will be the largest stimulus plan in the history of the US. According to the White House, the relief bill is a “historic legislative package that will turn the page on this pandemic”.

The bill has been a subject of hot debates lately. The final vote was yesterday. 220 House representatives were in favor, 211 were opposed, which broke mostly along party lines. While Democrats insisted that the plan would help all the Americans, Republicans criticized it. They described the bill as a partisan pork-barrel project that has little to do with actual coronavirus relief. Besides, they called the package “wrong” as it does not encourage the production of goods or services.

What’s Covered by the US Relief Bill?

The $1.9 trillion relief bill is the US’s sixth relief package since the beginning of the coronavirus pandemic. The House first passed it at the end of February, but it had to return to the House after Senate proposed their changes.

Known as the “America Rescue Plan”, the bill includes providing $1,400 checks for Americans earning up to $75,000. Further, it extends $300 weekly unemployment benefits till September. State and local governments whose revenue has declined will also receive a $350 billion aid. As for schools and colleges, they will be able to fully reopen due to the $130 billion the bill will allocate for them. In addition, the package will dedicate $30 billion to help renters and landlords who suffered economic losses. $50 billion will go for small-business assistance, $30 billion will go for restaurants.

The relief bill also will allocate as much as $160 billion for vaccine development, manufacturing, and distribution. Notably, the US will purchase another 100 million doses of Johnson & Johnson’s (NYSE: JNJ) coronavirus vaccine. The bill also expands subsidies and other provisions to help Americans afford health insurance.

Above all, the package will expand the child tax credit up to $3,600 per child.

According to the White House, Joe Biden will sign the bill on Friday. To promote the aid package and highlight its provisions, Biden’s administration is planning a media “blitz”.

Market News, News
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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