Compliance & Governance

A Snapshot Of The American Rescue Plan Act Of 2021

Summary of key provisions in H.R. 1319

The National Association For Fixed Annuities (NAFA) presents a summary of the bill. Access the full report here.

The House and Senate have approved H.R. 1319, the American Rescue Plan Act, in party line votes using a process called budget reconciliation, which requires a simple majority to approve measures that are restricted to spending items.

The $1.9 trillion package is designed to provide aid to individuals, families, businesses and states trying to recover from the adverse impacts of COVID. The original introduced version of this package in the House contained a cost-of-living adjustment freeze for overall contributions to defined contribution plans and capped the maximum annual benefit for defined benefit plans beginning in 2031. This language was supposed to be a so called “pay-for,” but was stripped from the package in the Senate. A brief summary of key provisions is listed below and more comprehensive summaries from Senate Democratic Leader Chuck Schumer can be found here: ARP Title by Title Summary.pdf ( & ARP Summary of Modifications in the Senate Bill.pdf

Key Provisions:

  • Stimulus Checks- Provides $1,400 to single person with adjusted gross income of $75,000 or below, heads of household adjusted gross income of $112,500 or below, and for married couples filing jointly $150,000 or below. Eligible recipients also receive equal payments for children. Partial payments below $1,400 phase out for individuals at $80,000, heads of household at $120,000 and joint filers at $160,000.
  • Unemployment Benefits- Provides for a weekly supplemental benefit (federal pandemic unemployment compensation) of $300 on top of regular unemployment coverage, which runs through September 6, 2021.
  • Paycheck Protection Program- Expands eligibility for nonprofits and includes $15 billion in emergency grants.
  • EIDL Grants- Adds $15 billion for targeted Economic Injury Disaster Loans for underserved and minority owned businesses.
  • Pensions- Provides $86 billion to underwater pension funds in selected states.
  • Tax credits- Expands earned income tax credits for 2021, increases child tax credits, and expands child care and dependent care tax credits.
  • Housing- Incudes $10 billion for homeowners facing foreclosure and $27.4 billion in rental assistance, and $5 billion to help families cover utility expenses.
  • Transportation-Includes $30 billion for subway and bus systems, $8 billion for airports, $1.5 billion for Amtrak workers, and $3 billion for aerospace company employee wages.
  • ObamaCare Subsidies-Increases funding through 2022 and provides tax credits for families to cover insurance costs.

Excerpts From The Bill:

Small Business Capital: SSBCI provides investment for state governments to set up programs that can leverage billions of dollars in private capital for low-interest loans and other investment to help entrepreneurs and the small business economy rebound from this crisis. The $1.5 billion in SSBCI in 2010 helped states leverage at least 10 times the amount of their SSBCI funds to generate new small business lending, helping to create or retain over 240,000 jobs. The American Rescue Plan provides $10 billion for the SSBCI to help states support small businesses as they recover from the pandemic and reemerge stronger and more resilient than before.

The $1.9 trillion package is designed to provide aid to individuals, families, businesses and states trying to recover from the adverse impacts of COVID...

Mortgage and Utility Assistance: An estimated 3.3 million homeowners are behind on their payments or in foreclosure, and more homeowners are likely behind on utilities and property taxes. Homeowners of color are disproportionately likely to have fallen behind during the pandemic. There has been no funding dedicated to assist homeowners since the pandemic began, and with millions of forbearance plans set to expire in the months ahead, funding will be critical to help homeowners get back on track. The American Rescue Plan provides $9.961 billion in funding through the Department of Treasury to states, territories, tribes, and tribally designated housing entities to provide direct assistance to homeowners

Restaurants: The bill will provide $28.6 billion in direct relief for the restaurant industry through the creation of a grant program as envisioned in the RESTAURANTS Act. The restaurant industry has been among the hardest hit during the pandemic. Over 110,000 restaurants and bars – more than one in six across the country – have closed permanently or long-term, causing the loss of over 2.4 million jobs. It is estimated that independent restaurants – small, mom-and-pop restaurants – lost over $135 billion in sales last year, while the broader industry lost $240 billion. While PPP has offered some vital assistance to the nation’s restaurants, a significant need still exists, especially for smaller restaurants.

Expanded PPP Eligibility: This bill expands PPP eligibility to include additional nonprofits such as 501(c)(5) labor and agricultural organizations and community locations of larger nonprofits and provides $7 billion for that purpose. Nonprofits are a significant sector in the economy and are on the frontlines of providing social services during this crisis. An additional $250 million is also provided to expand PPP eligibility for digital news services that provide local news and lifesaving information about public health guidance during the pandemic.

Access a summary of HR 1319 here.




NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel about the value of fixed annuities and their benefits to consumers. NAFA’s membership represents every aspect of the fixed annuity marketplace covering fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998. For more information, visit


One response to “A Snapshot Of The American Rescue Plan Act Of 2021”

  1. Wilma Arnold says:

    After reading the Snapshot, I was interested in reading the entire Act. However this document provides an excellent overview. Well done!