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Spring 2021 Federal and California COVID-19 Relief Actions

Between federal and state funding, Californians can expect help in different forms over the next few weeks, and likely beyond. Below you will find information about some of the money coming down for you or for programs you work with and/ or rely on.

 

DIRECT PAYMENTS, TAX CREDITS, CHILD CARE, & EMERGENCY FUNDS

  • The American Rescue Plan, signed by President Biden on March 11, 2021, provides $1,400 direct payments, which will go out immediately to about 159 million households. Checks will be a maximum of $1,400 per individual, or $2,800 per married couple, plus $1,400 per dependent.
    • Payments are based on your most recent tax return. Individuals who file taxes using an ITIN will not get a federal stimulus payment, but anyone filing with a Social Security Number will receive a payment.
    • Individuals earning up to $75,000 in adjusted gross income, heads of household with up to $112,500, and married couples filing jointly with up to $150,000 will get the full $1,400 per person.
    • The plan also includes $300 in bonus unemployment benefits until September 6th, and makes the first $10,200 of unemployment benefits nontaxable for those with incomes under $150,000 per year.
  • The American Rescue Plan also increases SNAP food benefits by 15% through September, and allocates $1 billion for the TANF (Temporary Assistance for Needy Families) Pandemic Emergency Fund. California will receive $203 million in TANF emergency funds that can be used for payments to families for non-recurring costs like rental debt or to provide housing assistance.
  • California has a separate $600 direct stimulus payment program, which will go out to 5.7 million Californians once their taxes are filed. Eligibility for the state stimulus includes:
    • Those who qualified for the state Earned Income Tax Credit on their 2020 tax returns (usually those making less than $30,000, and some undocumented and mixed-status families).
    • Individual Tax Identification Number (ITIN) holders who are excluded from federal stimulus checks and have incomes below $75,000.
    • Households enrolled in CalWorks, SSI/SSP recipients, and Cash Assistance Program for Immigrants (CAPI) recipients.
    • ITIN taxpayers who qualify for the California Earned Income Tax Credit will receive a total of $1,200.
  • The American Rescue Plan raises the maximum Earned Income Tax Credit (EITC) for adults without children from $543 to $1,502.
  • The American Rescue Plan expands the child tax credit for one year. Previously, most families received up to $2000 in tax credits per child under age 17; under the new plan, most parents except the very highest earners will receive a $3600 payment for children 5 and under, and up to $3,000 for children between 6-17. This includes families without taxable income.
  • The American Rescue Plan temporarily increases the value of the child and dependent care tax credit, which currently covers 35% of care expenses up to $3,000 for one dependent or $6,000 for two or more dependents.
    • Overall, the plan provides $39 billion for child care through:
      • $15 billion for the Child Care and Development Block Grant (CCDBG).
      • $24 billion for newly created child care stabilization grants.

HEALTH

  • The American Rescue Plan provides $0 premiums for people enrolled in Covered California earning less than 150% of the federal poverty level or who claim unemployment anytime during 2021. It provides additional premium support for people who earn more, and forgives excess premium support given in 2020 that people would normally have to pay back.
  • The American Rescue Plan covers more of the state’s Medi-Cal costs, like home and community based services, and a 100% federal match for COVID-19 vaccines given by Medi-Cal.
  • The plan also provides a state option to extend postpartum Medicaid for 12 months instead of 60 days. California currently does this only for people diagnosed with a mental health condition within the 60 day postpartum period.

HOUSING

  • California received $2.6 billion in federal rental relief from the COVID-19 package passed in December 2020; those funds became available on March 15, 2021.
    • Renters who make under 80% of an area’s median income are eligible for rental assistance under California’s SB 91. Landlords must apply for the assistance, and agree to waive 20% of rent owed between April 1, 2020 and June 30, 2021 – the remaining 80% will be paid by government funds.
    • If a landlord refuses to participate, renters can still apply to have 25% of back rent paid.
    • Cities and counties may distribute rent relief funds differently.
  • The American Rescue Plan provides an additional $21.6 billion in emergency aid for renters with low-incomes who have lost income or are experiencing hardship from COVID-19 and at risk for eviction. The plan includes:
    • $5 billion for emergency housing vouchers to support those recently homeless or at risk of experiencing homelessness.
    • $750 million for tribal housing needs.
    • $100 million for rural households living in USDA-financed properties.

Californians with low incomes to receive $600 checks under $9.6-billion COVID-19 economic package

“The state stimulus will provide needed help to the poorest Californians, but more assistance is required, said Courtney McKinney, a spokeswoman for the Western Center on Law and Poverty.

“Any money to help people stay afloat is needed right now,” McKinney said, adding that “it’s good news, but there is still much more needed.” In particular, she said, her group is supporting legislation that would provide food assistance regardless of immigration status.”

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These Californians don’t get stimulus checks — why advocates want Newsom to do more for them

“Christopher Sanchez, a policy advocate at the Western Center on Law & Poverty, said the COVID-19 crisis has exacerbated inequities for California’s undocumented communities, many whom live paycheck-to-paycheck and lost jobs at unequal rates during the pandemic-induced recession.

“The governor’s proposal is absolutely a great step in the right direction for undocumented families,” Sanchez said. “However, we know that there are going to be individuals who are left out.”

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Unemployment Insurance Bolsters Child Support Payments, But Future Remains Uncertain

“Jessica Bartholow, a policy advocate for the California-based Western Center on Law & Poverty, thinks a lack of awareness about public assistance repayments led to what she sees as an oversight in the federal CARES Act. It allowed federal stimulus payments to be intercepted for child support debt, thus letting the money flow away from families who have received public assistance and back to the government.

“Congress incorrectly made the assumption that all the money goes to a custodial parent,” she said. “We believe Congress just didn’t understand that.”

Unemployment Insurance Bolsters Child Support Payments, But Future Remains Uncertain

Grocery Money Zips Straight to California’s Needy Students Amid School Closures

“For families that aren’t eligible for unemployment insurance or stimulus checks, these debit cards could be the only form of emergency assistance they’re receiving, said Jessica Bartholow, a policy advocate with the Western Center on Law and Poverty. It also helps families that haven’t been able to take advantage of the school districts’ grab-and-go meal program because of transportation issues or strict adherence to shelter-at-home orders.”

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A timeline of IRS stimulus payment glitches

“Because of stay-at-home orders and changing directions from the IRS, people have been confused about how to get their full payments, said Jessica Bartholow, a policy advocate with Western Center on Law and Poverty in California.

“Those face-to-face interactions where we would normally give out information pertinent to the population from trusted, informed community allies is no longer an available channel of communication,” Bartholow said. “People don’t always know which [benefit] they are getting. It can be the matter of one letter in an acronym that can change which deadline applies to you.”

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Stimulus Checks: Some Payments Delayed Until 2021

“Jessica Bartholow, a policy advocate with Western Center on Law & Poverty in California, explained to the Washington Post just how much this can affect families amidst this pandemic. However, she also noted that she hopes that the government can find some way of getting these payments to American taxpayers.”

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IRS tells parents still waiting for their $500 stimulus child benefit it won’t arrive until next year

“Parents are really going to be devastated to learn they may not get the payments for their children, said Jessica Bartholow, policy advocate with Western Center on Law & Poverty in California.

“Five hundred dollars is a lot of money and could provide a lot of emotional and financial relief,” Bartholow said. “Right now is a moment in which we have to believe in government and we have to believe that it can work. So as disappointing as all of this is, I also really still believe in the IRS to do the right thing, to find a way to get these families the $500 per child as soon as possible.”

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