Gulf Coast Unions Celebrate Passage of American Rescue Plan

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But this is just the first step — its time to create a 21st-century infrastructure with good-paying union jobs, pass a $15 minimum wage, and strengthen working people’s right to organize together by finally passing the PRO Act.

This is a historic relief package that addresses the mounting challenges facing America’s workers in every corner of the country.

Each component — from getting shots in our arms to putting money in our pockets — is essential to rebuilding a shattered economy. We’re thankful to President Joe Biden and our Texas Gulf Coast Representatives Sylvia Garcia, Al Green, Sheila Jackson Lee, and Lizzie Fletcher for pushing this critical legislation forward.

The burdens of this pandemic have fallen squarely on the shoulders of working people. This is the time to take big, aggressive action to ensure we can make our voices heard on the job and take home a fair share of the enormous value we create every day.

Below are some highlights of the $1.9 trillion pandemic relief package enacted this week:

Public Health. Provides $48.3 billion for testing, contact tracing and personal protective equipment (PPE); $7.5 billion for vaccine distribution; and $5.2 billion for procurement of vaccines and supplies. Provides $10 billion to expand domestic production of PPE, vaccines and medical supplies under the Defense Production Act.

Workplace Safety. Provides $200 million for pandemic-related worker protection activities at the Labor Department, half of which would go to the Occupational Safety and Health Administration (OSHA) to support OSHA enforcement and worker training in high-risk sectors such as meat processing, health care, correctional facilities and agriculture.

Relief for State and Local Governments. Provides $350 billion in aid to state, local, tribal and territorial governments to help deal with the budgetary impact of the pandemic, including $195.3 billion for states and Washington, D.C.; $130.2 billion for local governments; $20 billion for tribal governments; and $4.5 billion for U.S. territories.

Education. Provides $125 billion in state grants to help local educational authorities reopen K-12 public schools safely, address instruction loss and support students as they recover from the effects of the pandemic. Provides $39.6 billion to colleges and universities and their students, at least half of which must be spent on emergency financial aid grants.

Direct Payments. Provides $1,400 in direct payments to individuals making less than $75,000 and married couples making under $150,000, and for dependents claimed on federal tax returns.

Unemployment Benefits. Extends pandemic-related unemployment assistance that was set to expire on March 14, including the current $300 supplement to unemployment benefits (called “Pandemic Unemployment Compensation”), for another six months through Sept. 6. Provides that the first $10,200 of unemployment benefits received by taxpayers making less than $150,000 will not be subject to federal taxation.

Relief for Multiemployer Pensions. Provides about $86 billion in financial assistance to struggling multiemployer pension plans, which the plans will not have to repay, to cover all benefits due through plan year 2051, with no cuts to accrued benefits.

Full COBRA Subsidies. Subsidizes 100% of health care premiums of COBRA-eligible individuals who lose their job or had reduced hours, who will not have to pay any premiums, for six months. The employer or health plan can claim a refundable tax credit against their Medicare payroll tax liability for the cost of the premiums.

Airline and Aerospace Payroll Support. Provides $15 billion for the wages and benefits of employees of airlines and contractors in the airline industry, on terms similar to airline payroll support in previous legislation: no layoffs or pay cuts through Sept. 30 or whenever the assistance is exhausted, whichever is later, and the continuation of current restrictions on stock buybacks, dividend payments and executive pay. Provides another $3 billion to create a payroll support program for aviation manufacturers.

Transportation. Provides $30.4 billion for grants to transit agencies, which can be used for operating expenses, including payroll costs and PPE, and $1.7 billion for Amtrak in fiscal year 2021, including funding to recall furloughed workers and restore the frequency of long-distance routes.

Paycheck Protection Program (PPP). Extends eligibility for the PPP forgivable loan program to more tax-exempt groups, including 501(c)(5) labor organizations. Creates a new $28.6 billion grant program for restaurants.

Child Tax Credit. Reduces child poverty by expanding the child tax credit through 2021, increasing the maximum credit to $3,600 for each child younger than 6 and $3,000 for other children, and making the credit fully refundable.

Child Care. Expands the Child and Dependent Care Tax Credit to $4,000 per child or $8,000 for two or more children, and makes the credit fully refundable. Provides $39 billion for child care, including $15 billion in grants to states to help low-income families afford child care and help essential workers regardless of their income and $24 billion for state grants to child care providers.

Federal Employee Leave. Provides $570 million to create an Emergency Federal Employee Leave Fund to provide up to 15 weeks of emergency paid leave for civilian employees and postal workers, including those who have COVID-19, who are caring for someone with COVID-19, are looking after children during virtual classes, or are obtaining a COVID-19 vaccine. Provides $13 million for an Emergency TSA Employee Leave Fund and $9 million for an Emergency FAA Employee Leave Fund.

Paid Sick Leave and Paid Family and Medical Leave Tax Credits. Extends current tax credits through September 2021 and expands eligibility to include state and local governments.

Employee Retention Tax Credit. Extends the current tax credit through Dec. 31, 2021, and increases the percentage of wages covered for severely distressed businesses.

Earned Income Tax Credit. Expands the earned income tax credit for taxpayers without children for 2021 by increasing both the credit percentage and phaseout thresholds.

Veterans. Provides $386 million to create a rapid retraining program for veterans who are unemployed because of the pandemic.

Housing. Provides $21.6 billion for emergency rental assistance to prevent evictions and $10 billion to help homeowners avoid foreclosure; $5 billion for emergency public housing vouchers; and $5 billion to address homelessness.

Nutrition Assistance. Extends a 15% increase to monthly benefits under the Supplemental Nutrition Assistance Program through Sept. 30, 2021.

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Texas Gulf Coast Labor Federation AFL-CIO
Texas Gulf Coast Labor Federation AFL-CIO

Written by Texas Gulf Coast Labor Federation AFL-CIO

Official account of the Texas Gulf Coast Area Labor Federation.

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