New Report: 2021 Poverty Projections: Assessing Four American Rescue Plan Policies
Posted by Urban Institute on March 23, 2021
A new report by the Urban Institute examines how the American Rescue Plan Act would lift people out of poverty. The report examines four policies included in the plan, including pandemic-related unemployment insurance, SNAP increases, $1,400 stimulus payments, and increases in the child tax credit. The report finds that the plan would reduce the projected number of people in poverty in 2021 by about 16 million, from over 44 million to 28 million. For children, the poverty rate would be cut by more than half. Specifically, researchers found that poverty would fall 42 percent for Black, non-Hispanic people and 39 percent for Hispanic people, compared with 34 percent for white non-Hispanic people, thus reducing the disparities in poverty rates.
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