The American Rescue Plan (ARP) passed by Congress and signed into law by President Biden on March 11, 2021 aims to speed up the nation’s recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.
- Read the breakdown: What the American Rescue Plan means for Maine
The relief package can provide life-changing relief to Mainers who are struggling to rebuild their economic security because they’re facing eviction, hunger, job loss, and more. An estimated 38,000 Mainers are unable to pay their rent. About 291,000 Maine households are having difficulty covering household expenses. Not only are there now fewer jobs than in February of 2020, but a disproportionate number of job losses over the past year are in industries that pay low wages. Hardship has been particularly acute among communities of color, immigrant communities, and households with children.
The ARP will invest more than $6 billion in Maine that will dramatically reduce financial stress, hunger, housing insecurity, and health care costs for many and set the stage for a stronger and more equitable recovery. The relief package is historic in its size and scope, which matches the historic levels of suffering and inequality we’re facing in our state and our country.
The ARP will reduce inequities in economic security. The Urban Institute estimates that nationwide poverty can fall by 42% for Black people, 39% for Latinx people, and 34% for White people. Overall, the Rescue Plan could lower the poverty rate from 13.7 percent to 8.7 percent.
Now, we all must work to get these funds into the hands of every Mainer who needs help. We must build on the relief provided through the ARP here in Maine to optimize impact now and into the future.
- We need to make sure this help reaches the people who need it most, many who have had trouble getting the help they need. How these provisions are implemented here in Maine will determine whether people actually get help with food, rent, health care, and more. The state must act to ensure we use these federal funds to meet those needs, and quickly.
- While the ARP brings significant relief to many low-income Mainers, much of it is temporary. We must advocate for sustained policy changes that target and reduce poverty into the future. Inequities and unnecessary human suffering were with us before the pandemic hit. COVID-19 laid these problems bare and we must leverage this opportunity to build longer-term solutions.
- Our family, friends, and neighbors who are immigrants will not receive much of this federal relief because of their immigration status. At the state level, we have the power to provide help to Maine immigrants who have been left out of the federal relief. For example, the state can take steps to ensure the TANF Pandemic Relief Funds reach immigrant communities who have not been able to access other federal relief.
- In addition to the help that comes through the ARP, Maine still needs to implement state-level policy changes to address critical and unmet needs we see in our communities. For example, Maine still needs to pass legislation to expand dental coverage to adults covered by Medicaid. Maine can also open access to Medicaid for immigrants who have been unfairly excluded from health coverage.
The federal relief provided through the ARP is significant and can have a meaningful impact on Mainers who desperately need the help now. We have work to do to ensure it reaches those who need it most and that Maine fully leverages this opportunity to build sustainable solutions to poverty that will work to reduce inequities that were with us long before the pandemic into the future.
Maine Equal Justice focuses its work on many of the issues that affect people’s daily lives – access to adequate health care, housing, transportation and childcare; food and income security; and higher education and training. Maine Equal Justice is a 501 c 3 nonprofit organization. Our EIN is 04-3346273. 