The $1.9 Trillion American Rescue Plan Act of 2021 signed into law on March 11, 2021 marked the sixth phase of U.S. fiscal policy in response to COVID-19. To date, lawmakers have spent nearly $6.5 trillion since March 2020 and U.S. GDP growth forecasts are higher as a result of this latest COVID-19 stimulus package.
Unique to the Rescue Plan was the inclusion of at least $350 billion that will flow directly to state and local governments. A total of about $650 billion spread across different spending line-items will significantly support credit quality across many public finance sectors. Public entities will benefit from the higher macro-level spending and near unencumbered aid included in the bill, which could push U.S. public finance to the brink of a golden age.
Overview of COVID-19 Federal Relief Over the Last 12 Months
We have written several pieces describing the various federal relief packages over the last year and their specific benefits. See below for our previous COVID-19 relief reports, and stay up to date with our latest Municipal Commentary .