The potential expiration of federal subsidies under the Affordable Care Act (ACA) in 2025, following Donald Trump's re-election, threatens the healthcare coverage of millions of Americans. These subsidies, expanded under the Biden administration's American Rescue Plan, have significantly reduced the uninsured rate. However, with Republicans controlling the presidency and Congress, the extension of these subsidies is uncertain, potentially leading to increased medical debt and uninsured rates, particularly affecting middle-class Americans.
Democrats are highlighting the Butch Lewis Act, part of President Biden's American Rescue Plan, which has saved over 1 million union workers' pensions and aims to prevent cuts for 2 million retirees. The law, named after a Teamsters union leader, provides financial assistance to struggling multi-employer pension plans. This move is part of the Democrats' strategy to secure union votes in swing states like Pennsylvania ahead of the general election.
President Biden is set to announce a $82 million investment to expand high-speed internet access in North Carolina, aiming to connect an additional 16,000 homes and businesses in the state. The funding, part of the American Rescue Plan, will also create jobs in manufacturing and construction and save North Carolinians money on their internet bills. Biden's goal is to connect over 300,000 more homes and businesses to high-speed internet by 2026, with a total of $1 billion from the American Rescue Plan, and to connect all Americans to high-speed internet by 2030.
The IRS has announced a delay in implementing new reporting requirements for users of payment apps such as Venmo and Cash App. Originally, users who made $600 or more selling goods and services would have had to report those transactions to the IRS, but now separate tax forms will be sent for taxpayers who receive over $20,000 and make over 200 transactions. The basic reporting threshold will be increased to $5,000 in 2024. The delay is due to taxpayer confusion and the need for additional time to effectively implement the new requirements. Lawmakers from both parties have celebrated the delay and called for a reevaluation of the provision in the American Rescue Plan.
A federal program that provided $24 billion in child care funding is set to expire, causing concern for parents and child care providers. The program, part of the American Rescue Plan, helped stabilize child care programs and reduce costs for families. Estimates suggest that 70,000 child care programs could close, impacting 3.2 million children. However, experts believe the impact may be less severe due to state investments in child care systems. Congressional Democrats have proposed a bill to provide $16 billion annually for child care providers, but it faces challenges. The expiration of funding could lead to higher costs for parents and difficulties in retaining child care workers. The impact on female workforce participation remains uncertain.
President Joe Biden will announce the construction of the McCain Library in Arizona, honoring his late friend, Republican Sen. John McCain. The library will provide education, work, and health monitoring programs to underserved communities in the state, funded by the American Rescue Plan in partnership with the McCain Institute and Arizona State University. Biden's visit will include warnings about threats to US democracy and a tribute to McCain, who passed away in 2018. McCain's widow, Cindy McCain, will join Biden during the announcement.
Schools are facing challenges in distributing the $800 million allocated for supporting homeless K-12 students under the American Rescue Plan. The funds can be used for various needs, such as transportation, cell phones, personal care products, and emergency housing. However, schools are struggling to spend the money before the September 2024 deadline due to competing demands, spending constraints, and a lack of updated guidance from the Education Department. Advocates are urging the department to issue new guidance that addresses the use of federal funds for homeless students and prohibits state governments from restricting local school spending. The forthcoming guidance is expected to arrive this month.
Senator Schumer announced that over 19,000 members of the United Food and Commercial Workers Union (UFCW) Local One Chapter in Upstate New York have had their pensions restored, thanks to $764 million received from the American Rescue Plan. These workers, who were victims of a collapsed pension system following the 2008 financial crisis, will now have the financial security they deserve.
The Biden administration plans to forgive $39 billion in student debt for 804,000 borrowers, which will not trigger a federal tax bill due to a provision from the American Rescue Plan. However, state taxes may still apply depending on where you live. It is important to plan for taxes, as current tax exemptions for income-driven repayment plans are temporary. Seeking professional advice and potentially switching plans can help minimize future tax liability. There is a possibility that the provision for tax-free student loan forgiveness could be extended.
Beyoncé and Kelly Rowland are collaborating with Harris County in a $7.2 million initiative, funded by the American Rescue Plan, to create 31 new permanent supported housing units for people experiencing homelessness in Houston. The county, along with the City of Houston and the Coalition for the Homeless of Houston/Harris County, has already reduced homelessness by 20% during the COVID-19 pandemic. A larger initiative will be announced in September, coinciding with Beyoncé's "Renaissance" world tour.
President Joe Biden will visit the Minneapolis area on April 3 as part of his "Investing in America" tour, during which he is expected to discuss his administration's work in passing legislation like the American Rescue Plan, the Inflation Reduction Act, and the CHIPS and Science Act. The location of his appearance has not yet been announced.
The average refund check handed out to the 72 million Americans who filed their 2022 income tax returns as of March 17 was down 11%, according to figures calculated by the Internal Revenue Service. The change can be attributed to COVID-era government benefits being rolled back, including the temporary increase in the child tax credit from $2,000 to $3,600 for children under the age of six as part of the American Rescue Plan. The smaller refunds come at an inopportune time for tens of millions of Americans who are struggling to make ends meet due to stubbornly high levels of inflation.
The North Carolina General Assembly passed a bill to expand Medicaid eligibility to include nearly all adults who make less than 133 percent of the federal poverty level, making North Carolina the 40th state to adopt Medicaid expansions provided through the Affordable Care Act. Gov. Roy Cooper has already stated he will sign the bill once it reaches his desk. The provisions of the bill will go into effect at the start of 2024, and county social services departments can begin accepting applications from eligible individuals beginning as soon as December of this year.
