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Joint Economic Committee Democrats Chairman - Rep. Don Beyer (D-VA)

The American Rescue Plan and Bipartisan Emergency Measures Helped Keep 50 Million People Out Of Poverty

Key Points:
Without income support programs such as direct payments, the expanded Child Tax Credit, expanded unemployment insurance benefits and emergency SNAP benefits, the projected Supplemental Poverty Measure for 2021 would have soared to 23.1% – putting nearly a quarter of Americans below the poverty threshold.
The American Rescue Plan and bipartisan emergency measures played a significant role in lowering the poverty rate in 2021, cutting the project poverty rate to 7.7% and keeping 50 million people out of poverty.
Across all age groups, federal support during the coronavirus pandemic effectively kept millions of people out of poverty, and the impact was greatest among children.
All 50 states saw a reduction in projected poverty rates, ranging from a minimum reduction of 49% in North Dakota up to a 75% reduction in Louisiana.

The American Rescue Plan and bipartisan emergency measures played a significant role in lowering the poverty rate in 2021, successfully alleviating hardship during an unprecedented national crisis caused by the coronavirus pandemic. Recent analysis by the Urban Institute found that these bills, combined with existing benefit programs, reduced the projected poverty rate in 2021 by two-thirds and kept an estimated 50 million Americans out of poverty.

The Urban Institute estimated that without income support programs such as direct payments, the expanded Child Tax Credit, expanded unemployment insurance benefits and emergency SNAP benefits, its projected Supplemental Poverty Measure for 2021 would have soared to 23.1% – putting nearly a quarter of Americans below the poverty threshold. However, benefit programs, the American Rescue Plan and bipartisan emergency response measures cut that number to 7.7%.

Read the full brief.