The American Rescue Plan and How It Affects Single Moms

The American Rescue Plan - What is it?

For the past year, the Covid-19 pandemic has caused an economic crisis in most families in the U.S. and across the world. Up to now, over 20 million Americans have contracted the disease, and 370,000 have lost their lives. Many Americans in large cities and small towns are struggling to bounce back. The racial injustice in the American health care system has now been brought to light. This calls for more action to be taken, rather than simply containing the disease. President Joe Biden has seen the need to rescue the American economy by coming up with this plan. He plans to invest in America while pushing recovery through the creation of more employment opportunities and building back even better. The American Rescue Plan is a 1.9 trillion Covid-19 stimulus package, which seeks to improve the lives of devastating families, including single moms and their children. This article will discuss the content of the plan and how it will benefit single mothers in the United States.

What are the Elements of the American Rescue Plan?

The President of the United understands that economic and health crises could worsen if less is done in rescuing the economy and also containing the coronavirus. The American Rescue Plan is specifically designed to change the course of the Covid-19 pandemic, facilitates recovery in the economy, and advance racial equity in the United States. If this plan finally succeeds, there is a possibility that it will reduce child poverty by 50% or more. So, what are the elements of the American Rescue Plan?

Direct Financial Payments for Families

Are you earning income not exceeding $75,000 annually? The Plan provides up to $1,400 direct financial payments to single mothers like you. This is meant to boost the initial $600 payments. The goal is to make the stimulus payment reach the $2,000 mark as requested initially by the former President, Donald Trump. Those with incomes exceeding $75,000 will receive less amount until their earnings hit $80,0000. The direct financial payments for families will help single mothers who lost their jobs or whose incomes dropped due to the pandemic support themselves as the economy continues to recover. Read more at

Extending Pandemic Unemployment Assistance (PUA)

President Joe Biden had unemployed citizens in his mind when designing the American Rescue Plan. The Plan seeks to extend unemployment benefits up to September and topping up weekly payments by $300. This is great news for long-term unemployed single mothers whose benefits were to expire in March. Single moms making up to $150,000 or less will have their first $10,200 2020 benefits free of taxes. Find out more at

Support to Parents by Extending Child Tax Credits

The American Rescue Plan recognizes the struggle parents, especially single mothers are going through now that the pandemic hit the economy hard. The plan intends to provide monthly benefits ranging from $200-300 to parents with kids under the age of 18. The number of benefits you will receive from this package will however depend on the age of the children under your care. Through this plan, the measure will improve the existing child credit's worth from $2,000 to $3,600 annually and it will also make the benefits available to single moms in advance. The bill also increases the number of funds single mothers can reclaim from the annual tax bill for childcare-related expenses. Many single moms currently have extra childcare duties now that the schools were shut down due to the pandemic and these benefits will support them through their daily struggles. For more details, please visit

Support to Schools and Universities to Facilitate Reopening

The American Rescue Plan sets aside $170 billion to help schools and universities reopen. The funds can be used to buy face masks, cleaning supplies, upgrading ventilation systems, and building more classrooms to reduce the size of students attending lessons in one classroom. In this plan, President Joe Biden has made school reopening his top priority because it has also stopped many single moms and other parents from going to work since they have to attend to their kids at home. For more information, please visit

Support for Businesses

The plan has not left businesses behind, since they are the backbone of the U.S. economy. The American Rescue Plan sets aside $28.6 billion for the new Restaurant Revitalization Fund Program, designed to provide up to $10 million pandemic assistance grants to each company to help cover the costs associated with space, utilities, payroll, and other business-related expenses. The plan also provides an additional $7.25 billion for the Paycheck Protection Program (PPP). This is to enable single mom-owned non-profits to apply for forgivable loans to help them grow and cover payroll and operational costs. Find out more at

Provision for Paid Leave and Health Insurance Support

The American Rescue Plan provides employers with incentives to provide sick leave to workers who have contracted coronavirus. Sick leave should also be given to those at risk of contracting the virus and those caring for the sick. The plan also ensures that more Americans can independently buy health insurance covers. The plan allocates $1,400 weekly paid leaves benefits to workers. Read more at

The Bottom Line

The American Rescue Plan provides a smooth way of running and boosting the economy. It takes into account the major areas affected by the Covid-19 pandemic and plans a way of helping both businesses and employees bounce back and move forward. It especially provides immediate economic relief to single mothers who are the ones hardest hit by the economic challenges brought about by the pandemic.