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AMERICAN RESCUE PLAN ACT OF 2021

The American Rescue Plan Act of 2021 is President Biden’s $1.9 trillion COVID relief legislation. This bill, which has already passed in the House, would provide additional funding for:
  • COVID-19 vaccines, treatment, and testing;
  • approving $1,400 stimulus checks for most taxpayers;
  • extending unemployment benefits;
  • increased child tax credit and earned income tax credit; and
  • extending the tax credit for nonprofits and other employers that offer paid sick leave and paid family and medical leave through September 30, 2021 (it is currently set to expire on March 31).
It would provide more funding for childcare providers, arts and humanities organizations, food assistance, housing and homelessness prevention, and nonprofits providing services to survivors of domestic violence and sexual assault.

Policy Priorities Impacting Nonprofit Organizations Include: 

  • Expand Access to Paycheck Protection Program (PPP) Loans. The bill would allow some larger nonprofits to apply for PPP loans for the first time by expanding eligibility to nonprofits with more than 500 employees that operate at multiple locations as long as no more than 500 employees work at any one location. It also would remove a rule that makes some nonprofits ineligible for PPP loans if they are affiliates of national organizations.
  • Extend and Enhance Federal Unemployment Coverage. The COVID relief package would extend various federal benefits for unemployed workers – including coverage for self-employed workers and staff of religious and very small nonprofits, as well as increase the per week supplemental federal payments from $300 to $400 – through August 29, 2021. Currently, these benefits are scheduled to expire on March 14. Notably for nonprofits, the bill would prospectively improve the federal coverage of the unemployment costs of reimbursing nonprofits from 50% to 75% during the period April 1 through August 29. 
  • Make no changes to the universal charitable deduction. Increasing the current universal or above-the-line deduction ($300/individual; $600/couples) remains a high priority of the nonprofit community and among some in Congress.

How You Can Help: 

Call or email your Senators to express your support for the American Rescue Plan Act of 2021.