This week President Biden signed into law the COVID-19 relief package, known as the American Rescue Plan. This $1.9 trillion stimulus bill includes $39 billion in direct funding for the childcare sector, including $24 billion to stabilize childcare providers, $15 billion for the Child Care and Development Block Grant, and $1 billion for Head Start programs. Of the $39 billion, California is expected to receive $3.79 billion.
The relief package includes additional supports for many children, families and ECE providers, including:
An expansion of the Child Tax Credit to $3600 for each child under 6 years old and $3,000 for each child between the ages of 6 and 17;
An expansion of the Child and Dependent Care Tax Credit up to a maximum credit of $4000 for one child and $8000 for two children;
An extension of the voluntary emergency paid sick and paid leave tax credits from March 31 to September 30, 2021, and an increase to the total amount of wages an employer can claim from $10,000-$12,000 per employee;
Expanded eligibility and additional funding for the Small Business Administration Paycheck Protection Program;
Providing $1,400 direct payments to individuals that make up to $75,000 per year (or couples earning $150,000). Some individuals or couples who received a prior stimulus check are not eligible for this assistance.
A $300 weekly unemployment supplement through September 6, 2021.
