History of American Rescue Plan Act of 2021 in Timeline
The American Rescue Plan Act of 2021, a $1.9 trillion economic stimulus bill, was signed into law by President Joe Biden on March 11, 2021. Its aim was to accelerate the United States' recovery from the economic and health consequences of the COVID-19 pandemic and the resulting recession. Proposed in January 2021, the plan expanded on measures from previous legislation, including the CARES Act (March 2020) and the Consolidated Appropriations Act (December 2020). The plan provided substantial funding for various sectors, including healthcare, education, and infrastructure, while also offering direct financial relief to individuals and families affected by the pandemic.
2001: Robert Dove Fired as Senate Parliamentarian
In 2001, Senate Parliamentarian Robert Dove was fired after making rulings that blocked tax cuts from being considered under the budget reconciliation process.
March 2020: CARES Act Passed
In March 2020, the CARES Act, a prior stimulus package, was enacted to provide initial relief during the COVID-19 pandemic. The American Rescue Plan built upon some of the measures in this act.
May 2020: HEROES Act Passed in the House
In May 2020, the House passed the HEROES Act, a $3 trillion relief package. However, the Senate did not consider the bill.
November 2020: Republican Opposition and State Allocation of Aid
Republicans opposed the bill, alleging it disproportionately benefitted Democratic states following the November 2020 election.
December 2020: Consolidated Appropriations Act Passed
In December 2020, the Consolidated Appropriations Act, another stimulus bill, was signed into law, preceding the American Rescue Plan.
2020: CARES Act Comparison
The March 2022 study compared the American Rescue Plan's impact with the 2020 CARES Act in terms of inflation and economic effects.
2020: COVID-19 Pandemic and Economic Crisis
Throughout 2020, the COVID-19 pandemic led to economic hardship, including job losses, evictions, and hunger, setting the stage for the American Rescue Plan.
January 14, 2021: American Rescue Plan Act Proposed
On January 14, 2021, the American Rescue Plan Act, a $1.9 trillion economic stimulus bill, was first proposed to address the economic and health consequences of the COVID-19 pandemic.
January 2021: Biden's Warning on COVID-19 Deaths
On January 2021, President Biden warned that the COVID-19 death toll could surpass 500,000, highlighting the severity of the pandemic.
February 8, 2021: Draft of Stimulus Legislation Released
On February 8, 2021, the Financial Services and Education and Labor committees released a draft of the $1.9 trillion stimulus legislation, marking a significant step in the legislative process.
February 2021: Congressional Budget Office Analysis on Minimum Wage
In February 2021, the Congressional Budget Office released an analysis of the potential impacts of raising the minimum wage to $15, including poverty reduction, wage increases, potential job losses, and effects on the budget deficit.
February 2021: Biden's Advocacy and Bipartisan Efforts
In February 2021, President Biden pushed for the stimulus package and criticized Republicans for obstructing its progress, signaling a willingness to proceed without their support.
February 2021: Economic Recession and COVID-19 Deaths
By February 2021, the U.S. was in a recession with 500,000 COVID-19 deaths. These crises underscored the need for the American Rescue Plan.
March 10, 2021: House Passage and Presidential Signature
On March 10, 2021, the House passed the American Rescue Plan Act, sending it to President Biden.
March 11, 2021: American Rescue Plan Act Signed into Law
On March 11, 2021, President Joe Biden signed the American Rescue Plan Act into law. This $1.9 trillion economic stimulus bill aimed to accelerate the nation's recovery from the economic and health impacts of the COVID-19 pandemic and recession.
March 15, 2021: Implementation Oversight and "Help is Here" Tour
On March 15, 2021, Gene Sperling was appointed to oversee the bill's implementation, and the "Help is Here" tour began to promote the legislation.
2021: Inflation Impact Estimate
The study estimated that fiscal support, including the American Rescue Plan, may have increased core inflation by about 3 percentage points by the end of 2021.
2021: Georgia Senate Runoffs and Stimulus Promise
In 2021, the promise of COVID-19 relief legislation, including direct payments, was a factor in the Democratic victories in the Georgia Senate runoffs.
2021: Provisions of the American Rescue Plan Act
During 2021, the American Rescue Plan Act provided various forms of assistance, including direct payments to individuals, aid to state and local governments, funding for vaccine distribution and schools, unemployment benefits, small business relief, expanded ACA subsidies, and incentives for Medicaid expansion.
March 2022: Inflation Impact Study
A March 2022 study by the Federal Reserve Bank of San Francisco assessed the potential inflationary effects of fiscal support measures, including the American Rescue Plan, estimating a potential 3 percentage point increase in core inflation by the end of 2021.
2022: Repeal of Section 1005
In 2022, Section 1005 of the American Rescue Plan, related to aid for farmers and ranchers, was repealed by the Inflation Reduction Act.
2022: Yellen's Projection on Full Employment
In 2022, Treasury Secretary Janet Yellen projected that the stimulus package would help restore full employment by 2022.
2022: Economic Impact Study
In 2022, a study evaluated the economic impact of the American Rescue Plan, highlighting its focus on lower and middle-income Americans and its potential to stimulate the economy.
2025: Romney-Cotton Minimum Wage Proposal
By 2025, the Romney-Cotton bill proposed a gradual increase in the minimum wage to $10, indexed to inflation, along with requirements for E-Verify and photo ID for workers.