American Rescue Plan Act (ARPA)
American Rescue Plan Act (ARPA, 2021)
1) Link to the Text of the Act
Read the statute (Public Law 117–2)
2) Why It Was Done
ARPA was enacted to provide continued economic and public health relief during the COVID-19 pandemic, expanding on the CARES Act with more direct payments, extended unemployment aid, and major funding for vaccines, schools, and local governments.
3) Pre-existing Law or Constitutional Rights
The CARES Act (2020) and follow-up relief bills laid the groundwork. ARPA extended and expanded those programs to address ongoing pandemic impacts.
4) Overreach or Proper Role?
Supporters said it was essential to prevent economic collapse and accelerate recovery. Critics argued it overheated the economy, contributed to inflation, and significantly expanded federal spending.
5) Who or What It Controls
- Individuals and families (direct stimulus checks, child tax credit expansion)
- Unemployed workers (extended federal unemployment programs)
- State and local governments (received billions in fiscal relief)
- Healthcare system (funding for vaccines, testing, Medicaid expansion)
- Schools (funding for safe reopening and remote learning support)
6) Key Sections / Citations
- Economic Impact Payments (third round of stimulus checks)
- Child Tax Credit expansion with advance monthly payments
- State and Local Fiscal Recovery Fund
- Public health funding for vaccines, testing, and workforce
7) Recent Changes or Live Controversies
- Child Tax Credit expansion reduced child poverty but expired in 2022
- Ongoing debates about ARPA’s role in inflation and economic recovery
- Billions in state and local relief funds remain unspent or redirected
8) Official Sources