North Michigan News

The highly anticipated $1.9 trillion federal COVID-19 relief plan is one step closer to passing as the U.S. House of Representatives is expected to vote on it this week.

If President Joe Biden subsequently signs the bill, it could impact Michiganders in four major ways, including tax credits and stimulus payouts, Bridge Michigan reported.

Economist Chris O’Leary of the Upjohn Institute for Employment Research in Kalamazoo told Bridge Michigan, “This is actually targeted toward the working class and lower incomes.”

The plan includes an additional $300 a week in unemployment through Saturday, Sept. 4. In Michigan, 859,313 Michiganders were receiving weekly unemployment benefits as of March 1. 

Also, those who earn less than $75,000 (and couples making $150,000 or less) will receive $1,400 stimulus payments each. Individuals who earn $80,000 (or couples who make at last $160,000) will receive a reduced payment.

Households with children will get up to an additional $3,600 in tax credits per child.

Referring to lower-wage workers, O’Leary told Bridge Michigan, “They have a higher proportion of spending that goes to needs versus luxuries.” He said the "cash injection" should really give the economy a jump-start.

Anyone who receives health care insurance through the Affordable Care Act can expect their premiums to be capped at 8.5% of their income over the next two years.

Schools in Michigan will also receive $3.8 billion under the plan, which doesn’t include the $2.5 billion schools had already received with previous COVID-19 relief packages last year. 

O’Leary told Bridge Michigan, “All together, it could amount to quite a lot per child. Families… are going to get a real boost.”

Michigan will also receive a portion of $350 billion that is slated to be given to state and local governments. More than 200 members of the Michigan Municipal League discussed how the potential $10 billion the state could receive will be allocated.