What Coronavirus Aid Bill Would Mean For CT

CONNECTICUT — The American Rescue Plan Act passed in the U.S. Senate last week and is now expected to pass in the U.S. House soon. It will mean billions of dollars of direct aid to Connecticut families, towns, the state and schools.

Here are some highlights of what it could mean for the state.

How much money is expected to come to Connecticut?

The relief bill would provide $2.6 billion of relief for the state and $1.6 billion for municipalities, Gov. Ned Lamont said. Money will be allocated through the end of 2024.

The money can’t be used to reduce taxes or backfill pension accounts, Lamont said.

Direct aid

The bill would expand unemployment benefits by $300 per week through Sept. 6 and around $10,000 of unemployment benefits wouldn’t be taxed for households that make under $150,000 a year.

The bill also includes direct stimulus checks of $1,400 per person including dependents for singles making up to $75,000 and couples earning up to $150,000. Payments phase out for singles making $80,000 and couples making $160,000.

The bill would also increase the 2021 child tax credit from $2,000 up to $3,600 for children under six and $3,000 for children six and older. The current plan calls for half of the credit to be paid in advance in monthly installments in the second half of 2020. U.S. Rep. Rosa DeLauro has been a proponent of increasing the child tax credit for nearly two decades.

How would the bill help schools and child care?

Around $130 billion would go to schools across the country, U.S. Sen. Chris Murphy said during a news conference.

“What this money is really dedicated to is building support services, likely in many cases temporary support services to last a year or two,” Murphy said.

Schools will have flexibility in how they can use the funding, but a portion must be used for special education.

Money can also be used for summer programs, Lamont said. It’s especially important to get children who have been remote for a full year re-socialized.

The bill also includes $40 billion in aid for child care providers and $1 billion to increase Head Start education for low-income families.

“What we do with this education funding is significant, it starts the day after school ends in June,” Lamont said.

How else is money allocated?

The additional 15 percent SNAP food benefit would be kept through Sept. 30 instead of expiring in June.

Around $20.3 billion is allocated for rental assistance.

There is $60 billion for small business, including $25 billion specifically for the restaurant industry.

There is $10 billion allocated to help ramp up vaccine production.