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Plan de estímulo

How Will Biden’s $1.9 Trillion COVID Stimulus Be Spent?

Biden’s stimulus plan allocates $410 billion in pandemic assistance checks of $1,400 to all U.S. citizens making less than $75,000 a year.

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With a third $1.9 trillion stimulus plan soon to become law, many Americans are asking: where will all that money go? The question is not unreasonable, as the plan ranges from the money that will go directly to address the pandemic to direct transfers to the states.

Stimulus plan checks and unemployment benefits

Biden’s stimulus plan allocates $410 billion in pandemic assistance checks of $1,400 to all U.S. citizens making less than $75,000 a year, or $2,800 for households with an income of less than $150,000 a year.

A $246 billion budget to send $300 unemployment checks to those who lost their jobs because of the pandemic is also included in the program. The original plan offered $400 weekly checks, but the Senate agreed to lower the amount but to extend the duration of the checks, which will be given until September 6.

stimulus plan - unemployment - covid-19 - el american
The stimulus plan reduces unemployment benefit by $100, albeit they will be extender for an additional month (EFE)

The plan offers $143 billion in tax credits to be allocated for families with children and low-income households. Biden’s plan calls for raising the child tax credit from $2,000 to $3,000 per child, rising to $3,600 for parents with children under 6 years old. Parents of 17-year-olds are also eligible for the credit. The bill also provides for a tax refund of 20% of taxable income to households with the lowest 20% of income.

Pandemic care

Nearly 7% of the stimulus plan budget will go to pandemic care, which equates to approximately $123 billion.

The stimulus plan allocates nearly $16 billion for the Covid-19 vaccination campaign. (EFE)

$50 billion will be allocated for COVID testing and tracking. $47 billion will be allocated for domestic calamity assistance and funeral expenses related to COVID. Some $16 billion will be allocated for vaccine distribution and supply chain maintenance, and finally $10 billion will be earmarked for use of the Defense and Production Act to ensure the supply of medical supplies.

SME aid

The package includes a budget for business assistance that includes $26 billion in assistance for restaurants, bars, and theaters; $15 billion for airline payroll; another $15 billion to address pandemic incidents; and finally, $7.2 billion in payroll assistance for small businesses.

Aid to small businesses

The package includes a budget for business assistance that includes $26 billion in assistance for restaurants, bars, and theaters; $15 billion for airline payroll; another $15 billion to address pandemic incidents; and finally, $7.2 billion in payroll assistance for small businesses.

Although much of the tax revenue has already been recovered, states like California, which destroyed jobs on a massive scale, will receive up to $26 billion as a reward from the Biden administration.

The transfer formula awards states that destroyed more jobs during the pandemic (EFE)

Of the $360 billion, $195 billion will be used to transfer directly to the states, while $155 billion will go to local governments, territories and Indian tribes. Finally, $14 billion will be used to cover Covid-19 leave for public employees.

Other expenses

The budget will include $129 billion for schools that will be distributed regardless of whether classrooms are open or not. Universities were also able to secure $40 billion. However, in the previous stimulus, Congress had already drawn down $113 billion, although most of these funds have yet to be used.

Democrats also took advantage of the President’s stimulus to shift more funds to their programs, such as subsidies to pay for defrauded Obamacare premiums, i.e., those unpaid bills in the system whose liabilities grow over time.

Finally, Biden’s stimulus package includes $39 billion for early childhood care, $30 billion for transit agencies, $19 billion for rental assistance, $10 billion for mortgage payments, $4.5 billion for the energy assistance program for low-income households, as well as $3.5 billion for food stamps and, finally, $1.5 billion for the rail network.

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