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


Source: HilltopSecurities.


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 .