Stimulus Money, Tax Credits Will Lift Kids Out Of Poverty: Castor

FLORIDA — In addition to providing Americans with a $1,400 stimulus check, the latest pandemic stimulus package approved by Congress will provide some relief for parents struggling to raise children during the global pandemic, a Florida lawmaker from Tampa said.

Passed by Congress and signed into law by President Joe Biden March 11, the $1.9 trillion economic stimulus bill is intended to shore up American families facing economic repercussions due to the coronavirus crisis, bail out schools facing financial shortfalls due to closures and ensure that the coronavirus vaccine gets to Americans as quickly as possible.

Calling it "a historic investment that will lift millions of American children out of poverty, U.S. Rep. Kathy Castor, D-Tampa, hosted a town hall meeting via Zoom with local taxpayer advocate Diane Himelstieb on Tuesday to discuss the child tax credit she fought to have included in the American Rescue Act, as the relief package is formally known.

The plan increases the current child tax credit from $2,000 a year to $3,000 a year for parents with children age 6 and up and $3,600 a year for parents with children under 6 years old.

The full tax credit is available for single parents earning up to $75,000 annually and couples earning up to $150,000 a year.

"The new child tax credit could lift more than 3.8 million children out of poverty and put them on a path to success," Castor said. "It will make an important different for families who need it most."

She said many families will qualify for monthly advance payments, adding that the child tax credit is estimated to cut the child poverty rate in half.

Himelstieb said residents could begin receiving payments as soon as July 1 so she encouraged Floridians to be sure to file their 2020 tax returns.

This is just one of the ways the American Rescue Plan will directly impact Americans, Castor said.

“The American Rescue Plan will put more shots in arms and more money in the pockets of our neighbors and small business owners who need it at this precarious time in the public health and economic crisis," Castor said. "Americans need a bridge to survive the pandemic, and this historic emergency aid package will help families put food on the table, keep Floridians on the job, lift children out of poverty, operate schools safely and make up for lost ground for our students."

She said the plan also insures that enough vaccine is manufactured to provide every American with a shot quickly and equitably.

"The vaccinations are about to ramp up in April and President Biden wants to make all adults eligible for the vaccine by May 1," she said, noting that 2.4 million Floridians have now been vaccinated, about 11 percent of adults in the state. "Florida is ranked 35th in the country for the number vaccinated so we have a lot of work to do but it's going to improve."

Castor took the opportunity to take a dig at Florida Gov. Ron DeSantis, who had been criticized for hosting pop-up vaccination sites in communities with wealthy campaign contributors.

"The American Rescue Plan provides funds for more vaccination sites like the one at Tampa Greyhound Track in Sulphur Springs for a longer period of time with an eye to hard-hit communities of color and everyday Floridians, not the governor’s political donors, so that we can return to normal as soon as possible," she said.

Floridians who lost their jobs or income due to the pandemic will also receive some relief from the American Rescue Plan, Castor said.

"We had half a million Floridians who lost their jobs," she said. "At one point, we had the second most unemployment in the United States."

Although the unemployment rate in the state has gone down, she said there are many Floridians struggling to find work. The American Rescue Plan will extend unemployment and make the first $10,200 of unemployment benefits tax-free.

Castor also rebuked DeSantis for delaying the disbursement of federal emergency aid to school districts in Florida.

“Importantly, the American Rescue Plan includes a 60-day deadline to for the State of Florida to send the $7 billion for Florida’s K-12 to local districts," she said. "It is disappointing that it was necessary to include this provision, but Governor DeSantis and the state have unnecessarily delayed disbursing federal emergency aid that was approved by Congress back in December to local school districts. Congress passed this legislation because urgent assistance is needed to keep schools operating safely, address summer school and keep educators on the job through the public health emergency. This directive will ensure funds are disbursed with the speed this situation requires."

The American Rescue Plan also provides multi-billion-dollar incentives to states like Florida that have not expanded Medicaid and, as a result, many senior citizens lack health care coverage.

"It is fiscally irresponsible and morally wrong that the governor and GOP-controlled Legislature leave so many Floridians without health coverage, especially during a pandemic," she said."I urge policymakers in Tallahassee to bring our tax dollars back home to care for our neighbors and support our hospitals and health providers. More affordable coverage also will be available to more Florida families through new help under the Affordable Care Act."

Other features of the American Rescue Plan include:

• $25 billion in assistance solely for restaurants, which had been hard-hit by the pandemic.
• $15 billion to extend the Payroll Support Program through Sept. 30, stopping furloughs and layoffs for workers employed by airlines, cargo air carriers and contractors servicing air carriers at airports.
• $8 billion to support airports across the country as well as airport concessions and their employees until the travel industry returns to pre-pandemic levels.
• $20 billion to establish a national COVID-19 vaccination program and improve the administration and distribution of vaccinations.
• $7.5 billion for the Centers for Disease Control and Prevention to prepare, promote, distribute, monitor and track COVID-19 vaccines.
• $7.5 billion for FEMA to establish vaccination sites across the country.
• $600 million to the Indian Health Service for vaccine-related activities.
• $5.2 billion to the Biomedical Advanced Research and Development Authority to support advanced research, development, manufacturing, production and purchase of vaccines, therapeutics, and ancillary medical products for COVID-19.
• $1 billion to the CDC for a vaccine awareness and engagement campaign.
• $49 billion to expand testing, contact tracing, mitigation and related activities.
• $10 billion to fund the Defense Production Act to close the gap in domestic manufacturing.
• $27 billion to address health disparities in vulnerable populations.
• $7.6 billion to support COVID-19 response at community health centers.
• $4 billion to expand behavioral and mental health services
• $3.5 billion for the Substance Abuse and Mental Health Services Agency
• $280 million for programs that support mental and behavioral health and prevent burnout among health care providers and public safety officers.
• Funding for schools to reduce class sizes, repair ventilation systems, purchase personal protective equipment, remediate learning loss and hire support staff.
• $40 billion to support colleges and universities including emergency financial aid to students facing hardships due to the pandemic and bridge the digital divide by expanding internet connectivity for students.
• Extends and increases the Federal Supplemental Unemployment Benefit through Sept. 6 at a monthly supplemental benefit of $300.
• Removes the current cap that makes any family with an income above 400 percent of the poverty level ineligible for any subsidies. In addition, people below 150 percent of the poverty level will pay no premiums at all compared to the 4 percent of their income they currently pay.
• $26 billion for emergency rental assistance.
• $4.75 billion for Americans experiencing homelessness.
• $5 Billion to to help residents pay utility bills.
• $10 billion to the State Small Business Credit Initiative, supporting minority-owned businesses.