How the American Rescue Plan affects unemployment

Last updated: June 14, 2024
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Elyssa Duncan
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How the American Rescue Plan affects unemployment
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Countless Americans are still feeling the negative impact COVID had on the job market. As a response, lawmakers are pushing a $1.9 trillion pandemic relief plan that includes relief for those facing unemployment.

What is the American Rescue Plan?

The American Rescue Plan is a $1.9 trillion pandemic relief proposal that is set to provide assistance to the American people. The proposal includes:

  • Another round of stimulus payments at $1,400 per person
  • Enhanced unemployment benefits
  • Expanded refundable tax credits
  • Increased public health and vaccine distribution support
  • State and local funding to help critical workforce areas such as reopening schools

What does the plan mean for unemployment?

For workers facing #unemployment, the American Rescue Plan will prolong benefits established in the COVID relief package passed in December 2020, an extension of the CARES Act.

Increased federal unemployment benefits

Federal Pandemic Unemployment Compensation (FPUC)

The weekly $300 unemployment checks that were approved in December 2020 are set to expire in March 2021. However, through the FPUC, the proposed American Rescue Plan will increase the weekly federal bonus to $400 and extend these payments through September 2021.

Biden also hopes to include an automatic triggering system that allows aid to be adjusted accordingly depending on certain economic triggers, such as the unemployment rate. This allows the federal government to continue providing financial assistance to those in need without passing an additional bill.

Pandemic Unemployment Assistance (PUA)

Through the PUA, this plan proposes to extend financial assistance for unemployed workers who typically do not qualify for unemployment benefits, such as self-employed and gig economy workers. It also supports increasing the number of weeks these workers are entitled to receive benefits.

Potential funding for state, local, and tribal governments

In early January 2021, Biden expressed concern that governments are “slashing jobs” as a result of the pandemic and pledged to provide relief. The proposed plan will provide $350 billion to support local and state governments to provide assistance for housing, public transportation, school re-openings, and educational programs.

Want more stimulus information? 

Do you think this plan enough for those facing unemployment? Share your thoughts below.

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Sophia Williamson
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Manager at M M Tax Service

I still haven’t received my unemployment refund

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Norm Bean
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This is what happens when people don’t follow the guidelines of the Bible ~ since 1990 I’ve donated tithes to my church & Israel & I’ve never been out of work or had one day go by my entire life that I went without a meal ~ try living a Godly life instead of wasting your money on stupid stuff life drugs alcohol & gambling & see what happens

3y
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Irfan Ahmad
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I needed job

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Morena Quintanilla
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Secure transportation they They sent to me a letter when I was in the hospital have surgery the last paycheck no idea What’s in a happen By the time I’m in employment no one respond me

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Morena Quintanilla
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I am unemployed

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Willie Dukes IV
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I am unemployed

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Brian Charleston
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I applied for unemployment benefits in January however, its pending still. I just wanna make ends meet. Smh

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Ellen Thompson
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Application Analyst at Swedishamerican Hospital

I've exhausted all of my benefits in November, no money coming in, will I qualify for any extentions.

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Katherine Clark
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My benefit year in Michigan ends in April. Will the federal unemployment weekly benefit continue if it passes congress. For those of us who have been laid off since April 2020

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Ashok Kumar
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Please Sir ji numasta i am a poor man please help me and my family no job me

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