Michigan will get $10.3B in COVID relief package awaiting Biden’s signature

By: and - March 10, 2021 3:03 pm

COVID-19 coronavirus in USA, 100 dollar money bill with face mask. Coronavirus affects global stock market. World economy hit by corona virus outbreak and pandemic fears. Crisis and finance concept.

WASHINGTON — A sweeping $1.9 trillion coronavirus stimulus package is headed to President Joe Biden’s desk after the U.S. House passed the latest pandemic relief measure Wednesday on a party-line vote.

The massive bill includes a new round of $1,400 direct checks for many Americans, as well as an extension of expanded unemployment checks to assist people whose jobs vanished in the past year of shutdowns and lockdowns. Thursday will mark the one-year anniversary of the World Health Organization’s declaration that COVID-19 was a global pandemic.

The package sends financial help to state and local governments, restaurants, child care centers, and schools, and provides money to increase COVID-19 testing and vaccines, lower health insurance premiums, and boost broadband access.

Michigan will see $10.3 billion in aid to state and local governments. The state received $5.6 billion in the December aid bill signed by former President Trump. On Tuesday, Gov. Gretchen Whitmer signed legislation for about $2.5 billion of that, vetoing some funds tied to Republican attempts to curtail her administration’s pandemic powers.

The measure also vastly expands the child tax credit, temporarily giving most parents monthly checks instead of once-a-year tax reductions or checks. That provision greatly strengthens the social safety net for poor and middle-class families, and is expected to cut child poverty in half.


“One year ago today, Michigan’s Governor Gretchen Whitmer announced the first cases of COVID-19 in the state. Since this day, the lives of Michiganders and residents in the 13th Congressional District have been forever changed. We’ve lost loved ones and families continue to struggle to make ends meet even more so today because of this public health and economic crisis,” said. U.S. Rep. Rashida Tlaib (D-Detroit). “Today, I voted for the American Rescue Plan because this $1.9 trillion package is a critical lifeline for not only our residents in a form of a direct payment, but for our local governments, states, and school districts to ensure that our neighbors continue to get the services they greatly need.”

But U.S. Rep. Lisa McClain (R-Bruce Twp.) called the bill “nothing more than a partisan Democrat wish list that will continue funding liberal pet projects, rather than providing actual COVID relief to the people of my district.”

Biden is expected to sign it on Friday, White House press secretary Jen Psaki said at a briefing. “This legislation is about giving the backbone of this nation – the essential workers, the working people who built this country, the people who keep this country going – a fighting chance,” Biden said in a statement immediately after the vote.

As with Saturday’s 50-49 vote in the Senate and the initial vote in the House, no Republicans joined the Democratic majority in support of the bill, which passed on a 220-211 vote. One Democrat, Rep. Jared Golden of Maine, opposed the bill, saying in a statement that he would have preferred a more narrowly tailored measure.

Democrats have lauded the stimulus measure — which is nearly as large as the relief package approved last March, following stay-at-home orders and rising case counts — as providing immediate help to constituents still struggling with the effects of a virus that has caused more than 29 million confirmed infections in the U.S. and more than 525,000 deaths.

“This not only gets us to the other side of the crisis, it really starts healing the wounds that have been caused,” Majority Leader Steny Hoyer (D-Md.) said ahead of the vote.

Republican legislators have unanimously opposed the measure. They have decried it as unnecessary when the economy has shown signals of recovery, arguing that too little spending is focused on the virus’s effects and that portions of the bill won’t be spent for several years.

“I believe all of us continue to support targeted help for those who need it, but that’s not what this bill is,” said Rep. Lloyd Smucker (R-Pa.), calling it “the largest progressive policy wish list of all time.”


School reopenings

Rep. Jason Smith of Missouri, the ranking Republican on the Budget Committee, blasted the measure for spending less than one in $10 on boosting COVID-19 testing, treatment and vaccinations.

“Only 5% of the K-12 education funding will be spent this year, even as Americans are told this money is needed to reopen their children’s schools,” Smith added, citing a cost projection from the Congressional Budget Office.

White House officials have said they believe the school funding will be spent much faster than the CBO estimates.

Still, Republicans linked much of their criticism to the slow pace of school reopenings across the country. During Tuesday’s floor debate, Republican legislators rose one after another to request that the House instead take up a bill narrowly focused on helping kids return to in-person learning.

Democrats opposed the tactic, accusing GOP lawmakers of delaying a final vote on much-needed aid to Americans, including money that schools can use for addressing learning lost over the past year and buying equipment needed to reopen buildings.

“Republicans won’t help us … Why? Because Donald Trump’s name won’t be on the stimulus checks? Is that how easily they will abandon their constituents?” asked Rep. Steven Horsford, (D-Nev.).

While congressional votes on the pandemic stimulus package have been deeply divided, public opinion surveys have shown a sizable majority of Americans support the legislation.

A survey by Pew Research Center found 70% of adults favor the stimulus measure, and 28% oppose it. Democrats and those who lean Democratic overwhelmingly favor it, with 94% in support, and Republicans are divided, with 41% in support and 57% opposed.


No minimum wage increase

The final package largely aligns with the outline that Biden initially proposed. The Senate removed a proposal to boost the minimum wage to $15 an hour, and narrowed both the size of the unemployment benefits and the income limits for receiving the direct checks.

Tlaib and progressive lawmakers expressed disappointment in the absence of the minimum wage hike and said more work has to be done.

“We were sent here to work on behalf of and for the people – they deserve us doing everything we can to deliver for them,” Tlaib said.

Of the $350 billion in direct aid to state, local governments, territories and tribes, $195 billion would go to states and the District of Columbia, and $130 billion would be divided among cities and counties. Another $10 billion was carved out for capital projects, like improving broadband access.

The bill set limits on how the state and local aid can be used, barring officials from using the dollars to pay down pension costs or to pay for new attempts to cut taxes. And it would ensure that states get at least as much as they received under the last aid package.

The bill’s passage comes days ahead of the mid-March deadline set by Democrats who wanted to pass the funding before the last extension of unemployment benefits is set to run out.

The White House has said Americans are likely to see the direct checks hit their bank accounts by the end of the month. The new monthly checks stemming from the expanded child tax credit are set to begin in July.

While the child tax credit is only expanded for a year under the legislation, Rep. Richard Neal, a Massachusetts Democrat who chairs the Ways and Means Committee, expressed confidence this week that the provision will become permanent.

“What we did is unlikely to go away,” Neal said, describing it as harder to get something out of tax laws than to get something added to those statutes.


Money headed to states and local governments

The House Committee on Oversight and Reform has released estimates for how much each state and locality can expect to receive from the $350 billion in direct aid in the final version of the bill.

Those projections do not include other money that will flow through state and local governments, such as money for schools and for transit systems.

Here’s how those dollars are projected to be allocated to state and local governments in States Newsroom’s states:

  • Arizona: $7.6 billion
  • Colorado: $6.1 billion
  • Florida: $17.6 billion
  • Georgia: $8.4 billion
  • Iowa: $2.7 billion
  • Kansas: $2.7 billion
  • Louisiana: $5.2 billion
  • Maine: $1.7 billion
  • Maryland: $6.4 billion
  • Michigan: $10.3 billion
  • Minnesota: $4.9 billion
  • Missouri: $5.5 billion
  • Montana: $1.4 billion
  • Nevada: $4.1 billion
  • North Carolina: $8.9 billion
  • Ohio: $11.2 billion
  • Pennsylvania: $13.7 billion
  • Tennessee: $6.3 billion
  • Virginia: $6.9 billion
  • Wisconsin: $5.7 billion

Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. Please see our republishing guidelines for use of photos and graphics.

Laura Olson
Laura Olson

Laura covers the nation's capital as a senior reporter for States Newsroom, a network of nonprofit outlets that includes Michigan Advance. Her areas of coverage include politics and policy, lobbying, elections, and campaign finance.

Susan J. Demas

Susan J. Demas is a 23-year journalism veteran and one of the state’s foremost experts on Michigan politics, appearing on C-SPAN, MSNBC, CNN, NPR and WKAR-TV’s “Off the Record.” In addition to serving as Editor-in-Chief, she is the Advance’s chief columnist, writing on women, LGBTQ people, the state budget, the economy and more. For almost five years, Susan was the Editor and Publisher of Inside Michigan Politics, the most-cited political newsletter in the state. Susan’s award-winning political analysis has run in more than 100 national, international and regional media outlets, including the Guardian U.K., NBC News, the New York Times, the Detroit News and MLive.