Resource Policy

2021 Poverty Projections: Assessing Four American Rescue Plan Policies

This report describes key elements of the American Rescue Plan Act and how it would reduce the projected poverty rate for 2021. Various projections regarding the effects of the policy are described in this report.

Organization: Urban Institute
Published Year: 2021

The report projects that four major policies in the American Rescue Plan Act of 2021 would reduce the U.S. poverty rate by more than one-third, from 13.7% to 8.7%, lifting 16 million people out of poverty.

These policies—expanded unemployment insurance, increased SNAP benefits, $1,400 recovery rebates, and an enhanced child tax credit—would cut child poverty by over half, reduce racial and ethnic poverty disparities, and have the greatest impact on households affected by pandemic-related job loss.