West Central Michigan News

Michigan families, communities and businesses could soon reap the benefits of the latest federal stimulus package, once it is passed by the U.S. House of Representatives and signed by President Joe Biden.

The $1.9 trillion American Rescue Plan Act of 2021 focuses on lower- and middle-income people and trying to pull the country out of the economic hardships brought on by the COVID-19 pandemic. Stimulus payments of $1,400 would be given to individuals, including dependents, who make $75,000 or less and for couples who make a combined income of up to $150,000. Families could also receive a tax credit up to $3,600 per child under the Rescue Plan.

It's still unknown how much money Michigan will receive from the federal government during this wave of COVID-19 relief, but Bridge Michigan reported that the federal stimulus is expected to help with unemployment benefits, education and local governments, among other things.

Those who've filed for unemployment would continue to get an additional $300 per week from the federal government through Sept. 4. Those who've received unemployment benefits during the pandemic would also not be required to pay federal income tax on the first $10,200 they received in benefits, which could mean some won't be required to pay tax at all for the year.

Schools in Michigan would receive an additional $3.8 billion from the stimulus package. That money would be used to offset pandemic-related expenses, including technology upgrades used to improve virtual learning, mitigation efforts inside school buildings, personal protective equipment and upgrading ventilation systems in some buildings. Colleges and universities in the state would also receive some funding, too. 

According to Bridge Michigan, the state is expected to receive about $10 billion for local governments. Although experts believe that money will likely have "very few strings attached," they think they'll be some spending categories that are given priority, such as restoring the Michigan Unemployment Trust Fund.

Municipalities that lost income tax revenue could also be eligible to receive some relief dollars, and specific industries hit hardest by the pandemic and its associated restrictions could also see some direct help from the stimulus.