Summary: American Rescue Plan

“WE DID IT! This bill moves us forward in our work to prevent and end youth and young adult homelessness with the inclusion of two of our priorities, $800 million for youth experiencing homelessness to the U.S. Department of Education and the extension of the Earned-Income Tax Credit for homeless and foster youth. We applaud this bill and look forward to strengthening the national response with the passage of the Emergency Family Stabilization Act and the Runaway and Homeless Youth Trafficking Prevention Act. We won this fight – and we’ll continue to work with and for youth who have experienced homelessness and to identify and change policies to prevent youth and young adult homelessness and ensure youth in crisis can access what they need to survive, stabilize, and thrive.” – Darla Bardine, Executive Director, NN4Y

This summary provides the highlights of funding in the American Rescue Plan Act of 2021 directed to children, youth, and families experiencing homelessness.

US Department of Education

K-12 EDUCATION:

• $800 million for the purpose of identifying homeless children and youth and providing homeless children and youth with— 
  • Wrap-around services in light of the challenges of COVID-19;
  • and assistance needed to enable homeless children and youth to attend school and participate fully in school and activities.
• $126 billion in K-12 education to be distributed to State Education Agencies (SEAs) of which 87.5% must be awarded in subgrants to Local Education Agencies (LEAs) 
  • Not less than 20% of these funds are to address learning loss through the implementation of evidence-based interventions such as summer learning or summer enrichment, extended day, comprehensive afterschool programs, or extended school year program and ensure that such interventions respond to students’ academic, social, and emotional needs and address the disproportionate impact of the coronavirus on the student subgroups, including students experiencing homelessness, and children and youth in foster care
  • Of state funding not otherwise allocated, not less than 1% total amount of grant funds awarded to the State under this section to carry out, directly or through grants or contracts, the implementation of evidence-based summer enrichment programs, and ensure such programs respond to students’ academic, social, and emotional needs and address the disproportionate impact of the coronavirus on the student populations described in section 1111(b)(2)(B)(xi) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)(B)(xi)), students experiencing homelessness, and children and youth in foster care;

HIGHER EDUCATION:

• $40 billion to existing Higher Education Emergency Relief Fund
  • $18 billion of which must be used for emergency financial aid to prevent hunger, homelessness, and hardship due to the pandemic

US Department of Treasury 

EXTENSION OF EARNED INCOME TAX CREDIT (EITC) FOR UNACCOMPANIED HOMELESS YOUTH & YOUTH FROM FOSTER CARE AT 18, EVEN IF THEY ARE FULL-TIME STUDENTS: 

• Unaccompanied homeless youth and youth from foster care without children will be eligible for the Earned Income Tax Credit (EITC) for the taxable year December 31, 2020, to January 1, 2022, starting at the age of 18.
• Allows foster and homeless youth to claim the EITC even if they are full-time students and working (currently, law prohibits full-time students from claiming EITC). 
• For one year, increases the maximum credit for a childless claimant in 2021 to $1,502.

STIMULUS PAYMENTS:

• Direct stimulus checks of $1,400 for individuals making up to $75,000 a year.
• $2,800 for joint filers making up to $150,000 (families are also eligible for $1,400 per dependent child under 17).

EXPANDED CHILD TAX CREDIT:

• Temporarily expanded the child tax credit of up to $3,000 per child six to seventeen years of age or $3,600 for each child under the age of six.
• The increase in the maximum amount would begin to phase out at $125,000 (from $150,000) in income for married couples, $112,500 for heads of households, and $75,000 for other parents. 
• The IRS will pay part of this in monthly installments of $250 or $300 from July through December.

MORTGAGE ASSISTANCE:

• $10 billion for mortgage assistance to help homeowners avoid foreclosure through the Homeowner Assistance Fund.

US Department of Health and Human Services 

YOUTH SUICIDE PREVENTION:

• $20 million for the awarding of grants or cooperative agreements to:
  • Develop and implement State-sponsored statewide or tribal youth suicide early intervention and prevention strategies in schools, educational institutions, juvenile justice systems, substance use disorder programs, mental health programs, foster care systems, and other child and youth support organizations;
  • Support public organizations and private nonprofit organizations actively involved in State-sponsored statewide or tribal youth suicide early intervention and prevention strategies and in the development and continuation of State-sponsored statewide youth suicide early intervention and prevention strategies;
  • Provide grants to institutions of higher education to coordinate the implementation of State-sponsored statewide or tribal youth suicide early intervention and prevention strategies;
  • Collect and analyze data on State-sponsored statewide or tribal youth suicide early intervention and prevention services that can be used to monitor the effectiveness of such services and for research, technical assistance, and policy development; and
  • Assist eligible entities, through State-sponsored statewide or tribal youth suicide early intervention and prevention strategies, in achieving targets for youth suicide reductions under title V of the Social Security Act [42 U.S.C. 701 et seq.].

PANDEMIC EMERGENCY FUND:

• $1 billion to provide one-time benefits such as cash vouchers to eligible families with low incomes.

US Department of Housing and Urban Development

EMERGENCY RENTAL ASSISTANCE:

• $21.55 billion for emergency rental assistance via Corona Relief Fund for those eligible.
  • Renters will be eligible for relief if one or more individuals within the household have:
    • Qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experience other financial hardship during or due, directly or indirectly, to the coronavirus pandemic;
    • 1 or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability; and 
    • the household is a low-income family (below 80% AMI) 
  • Use of funds:
    • Not more than 10% of funds may be used to provide case management and other services intended to help keep households stably housed.
    • Not more than 15% of funds paid to a state or local government can be used for administrative costs.

EMERGENCY HOUSING VOUCHERS:

• $5 billion for emergency housing vouchers.
  • Eligible persons include those who:
    • meet HUD’s definition of homelessness; 
    • meet HUD’s definition of at-risk of homelessness; 
    • are fleeing or attempting to flee situations of domestic violence, dating violence, sexual assault, stalking, or human trafficking, or stalking; and for whom supportive services would prevent the family’s homelessness or having a high risk of housing instability.
  • Use of funds:
    • Funds may be used for tenant-based rental assistance, affordable housing development, supportive services for those not already receiving services, acquisition and rehabilitation/development of non-congregate shelters which may be used as shelter or converted to permanent affordable housing.

HOMELESSNESS ASSISTANCE:

• $5 billion for homeless assistance services through HOME investment partnerships program to provide rental assistance and supportive services, to develop affordable rental housing, to help acquire non-congregate shelter to be converted into permanent affordable housing or used as an emergency shelter. 
  • Eligible persons include those who:
    • meet HUD’s definition of homelessness; 
    • meet HUD’s definition of at-risk of homelessness; 
    • are fleeing or attempting to flee situations of domestic violence, dating violence, sexual asault, stalking, or human trafficking, or stalking; and 
    • for whom supportive services would prevent the family’s homelessness or having a high risk of housing instability.

ADDITIONAL ASSISTANCE:

• $750 million for tribal housing needs.
• $100 million for rural housing.

Small Business Administration  

FOR NONPROFITS:

Paycheck Protection Program (PPP)

• An additional $7.25 billion for the Paycheck Protection Program (PPP) and does not extend the PPP’s current application period, which is scheduled to close March 31. 
• Makes more nonprofits eligible to apply for the PPP. This includes 501(c)(3) organizations that employ not more than 500 employees per physical location (300 per physical location for Second Draw loans) of the organization would become eligible for the program.

Economic Injury Disaster Loan (EIDL)

• $15 billion for the Economic Injury Disaster Loan (EIDL) Advance Grants Program to provide grants of up to $10,000 per business to small businesses in low-income communities that have been most affected by the pandemic