The American Rescue Plan and Black Communities
The COVID-19 pandemic and the corresponding economic crisis are devastating Black communities. While Black Americans are 13 percent of the U.S. population, they represent nearly 24 percent of age-adjusted COVID-19 deaths. Black families also face higher than average unemployment rates and other economic challenges associated with the pandemic. Black Americans are facing one of the highest unemployment rates in the country. In January, nine percent of Black workers – 1.8 million people – were unemployed. Approximately 1 in 5 Black households are also struggling with food insufficiency, and more than 1 in 3 Black renters have fallen behind on payments.
The American Rescue Plan will change the course of the pandemic, deliver immediate relief for hard-hit Black families and small businesses, build a bridge towards economic recovery, and reduce poverty in Black communities by 34 percent. The bill is one of the most progressive pieces of legislation in history, with more than two thirds of its tax cuts and direct payments going to families making less than $90,000 per year. It will: Mount a national vaccination program, contain COVID-19, and safely reopen schools. American workers should not have to lie awake at night wondering if they’ll make it home from work safely the next day, or if they’ll bring home the virus to their loved ones and communities. President Biden has a comprehensive plan to address the pandemic that will:
- Invest about $160 billion to provide the supplies, emergency response, testing, and public health workforce to stop the spread of COVID-19, while distributing vaccines as quickly as possible and addressing racial disparities in COVID-19 outcomes. These emergency measures will help combat the heavy toll this virus is exacting, and will deliver community-based and culturally competent care.
- Provide $130 billion to help schools serve all students, no matter where they are learning, and help achieve President Biden’s goal to safely pen the majority of K–8 schools within the first 100 days of his Administration. These investments include set asides at the local and state level to ensure states and districts address the learning loss and social and emotional needs of students disproportionately impacted by COVID-19, including students of color, English learners, and students with disabilities.
Deliver immediate relief to American families bearing the brunt of this crisis. The American Rescue Plan devotes about $1 trillion towards building a bridge to economic recovery for working families. All told, a single parent with one young child making the minimum wage could see her income increase from the equivalent of $7.25 to around $11 per hour. The plan will:
- Give working families a $1,400 per-person check, bringing their total relief payment from this and the December down payment to $2,000. More than 85% of households will receive a check and checks in this bill are bigger than the checks in the CARES Act or in the December bill. And, for the first time, adult dependents are entitled to a check as well. This means a lower or middle-income family of four will see an additional $5,600 in their pockets.
- Extend current unemployment insurance benefits and eligibility to September 6 (saving 11 million Americans from losing benefits starting in about a week), provide a $300 per week supplement, and help protect Americans from surprise tax bills on unemployment insurance they received last year.
- Help Americans stay in their homes by providing emergency aid to cover back rent. In addition, the bill provides assistance to help struggling homeowners catch up with their
