Biden’s $1.9 Billion Spending Spree

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Max Fagan, Contributor

President Biden’s $1.9 trillion dollar stimulus package was announced on January 14, and it includes larger stimulus checks, this time more focused toward the hungry, the unemployed, and people who are struggling to pay rent and facing potential eviction because of the pandemic. There are multiple areas that this stimulus is aiming to reach and problems it is trying to solve. The main objective is getting another $1400 into the bank accounts of Americans who need it-this is on top of the $600 that was given out during the end of the Trump administration-for a total of $2000 in the span of 6 months. Here are some of the areas the Biden administration targeted. 

The main objective is getting another $1400 into the bank accounts of Americans who need it-this is on top of the $600 that was given out during the end of the Trump administration-for a total of $2000 in the span of 6 months”

Helping the hungry: Biden gave out $4 billion in nutritional aid, $3 billion to women and children so that they are able to provide food for the table, and $1 billion to our U.S. territories who need help regarding nutrition assistance. On top of that, Biden increased the benefits of food stamps by 15 percent, as well as extending the benefits from June to September, so that people can be sure to have time to transition back to normal-hopefully by fall time. 

Assistance toward rent and evading eviction: Lawmakers back in December allocated $25 billion dollars toward helping middle to low income tenants pay rent through the pandemic, and Biden announced in January within the plan that another $25 billion would be coming their way. On top of that, another $5 billion would be allocated toward utilities so that tenants don’t have to worry about living situations–just survival through hard times. Biden also unofficially wants another $5 billion allocated toward homelessness, to be given through the states to help their citizens who desperately need help. He also again pushed back the federal eviction moratorium that was originally supposed to end in January to September 30. This includes people with federally guaranteed mortgages, they will continue to have the ability to apply for forbearance until the 30th of September.

Aid towards childcare: This is aimed to help childcare centers as well as the families having to pay for childcare for children under the age of 13. Biden is asking congress to formulate a $25 billion fund as well as add $15 billion to a program that assists childcare providers and childcare homes to pay things like rent and utilities, as well as common fixed costs. 

Increase of tax credits: In order to help a lot of low income families and essential workers, Biden aims to increase the Child Tax Credit to $3,600 to children younger than 6 and $3,000 for children aged 6-17 for one year–fully refundable, of course. For adults without children, Biden plans to raise the maximum Earned Income Tax Credit for one year to $1,500, as well as expand the eligibility of citizens by increasing the age range in order to cover workers who are older. 

Aid towards schools and states: In order to maintain essential services, Biden plans to give $350 billion to state and local governments in order to keep workers employed so that the vaccine can be distributed as fast as possible, as well as money for reopening schools. An additional $170 billion will be distributed to schools, colleges, and universities in order to help them return to in person learning at some point in the future. Keep in mind that this is on top of the $82 billion that was sent to schools in December. 

Small business relief: In order to make things easier for small businesses, so that they don’t have to go through the Paycheck Protection Program like every other “small” business, Biden wants $15 billion allocated to create a new program with plans to make things easier and more quickly attainable. He also will try to indirectly help by giving $35 billion into financing programs that will be able to allocate funds with low interest rates, which will better stimulate the economy than a wire. 

Minimum wage: Biden is also asking congress to raise minimum wage to $15 an hour, which may or may not solve or create problems for employers.