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Myth Busting: How the GOP Is Lying about the American Rescue Plan

By March 2, 2021No Comments

Fact Sheet Debunks GOP Myths, Including:

MYTH: Only 9% Goes To Fight Coronavirus

 FACT: 100% Is For Fighting COVID 

MYTH: It’s A Blue State Bailout

FACT: 51% Goes To States With GOP Governor Or U.S. Senator

MYTH: $1 Trillion In Previous Relief Hasn’t Been Spent

FACT: 100% of Previous Relief Is Destined To Be Spent

MYTH: Filled With Progressive “Pet Projects”

FACT: Only 5% Goes to Job Creating Infrastructure Projects in Red and Blue States To Fight COVID Unemployment

Congressional Republicans have a dilemma. They want to stick it to President Joe Biden and deny him any bipartisan votes on his overwhelmingly popular emergency stimulus package, the American Rescue Plan. But by voting against it, they’re voting against direct stimulus checks, funding to get kids back in school, expanded unemployment insurance, and crucial money for vaccine distribution and testing – all of which is designed to help their own constituents struggling to make it through the crisis and finally end this pandemic.

So, in an effort to cover themselves, they’ve resorted to parrotting the same untrue claims about the American Rescue Plan. Here’s how they’re misleading the American people and voting to actually extend the crisis.

FALSE GOP MYTH: Less Than Nine Percent Of The American Rescue Plan Budget Actually Goes Towards Fighting Coronavirus.

FACT: The Entire $1.9 Trillion Package Goes Towards Addressing The Fallout Of The Coronavirus Pandemic – With More Than 20 Percent Specifically Designated For Public Health Measures Like Testing And Vaccine Distribution And The Remaining 80 Percent Aimed At Getting The Economy Back On Track. 

  • Over $400 Billion Of The American Rescue Plan Budget Is Dedicated To “Public Health Spending” To Address COVID-19. “According to the White House’s statement on its relief proposal, the American Rescue Plan wants to appropriate $160 billion for a national vaccination program, testing expansion, a public health jobs program and other measures to combat the virus. […] But $160 billion assigned to those few areas is not the extent of what Democrats want to allot toward public health. Safely reopening schools and emergency paid leave for people who are COVID-19 positive and must take off work is given $358 billion. While this funding is listed under Education and Labor in the Congressional Budget Resolution, it is a critical piece of public health that Democrats are considering part of overall public health spending. ‘Altogether, this would put over $400 billion toward these critical measures for addressing COVID-19,’ the Biden administration said in its outline of the American Rescue Plan. That puts ‘public health spending’ at more than 20 percent of the stimulus budget, one of its largest expenditures.” [Newsweek, 2/18/21]
  • $84 Billion Of The American Rescue Plan Budget Is Dedicated To Coronavirus Testing, Vaccine Distribution, And Increasing The Size Of The Public Health Workforce. “About $50 billion will fund coronavirus testing and contact tracing. Another $19 billion will go to increase the size of the public health workforce. And another $16 billion will fund vaccine distribution and supply chains.” [Washington Post, 2/27/21]
  • Almost $210 Billion Of The American Rescue Plan Budget Is Dedicated To Making Schools Safer, Helping Students Who Are Struggling Due To COVID, And Helping Child Care Providers. “The bill sets aside almost $130 billion for K-12 education. That money would go to improving ventilation systems, reducing class sizes, buying personal protective equipment and implementing social distancing, according to the House Committee on Education and Labor. Colleges and other higher-education institutions would get almost $40 billion. Schools must dedicate at least half of the funding for emergency financial aid grants to prevent hunger, homelessness or other challenges for students during the pandemic, according to the House committee. Almost $40 billion would go to child care providers through the Child Care and Development Block Grant program. The bill also sets aside $1 billion for the Head Start program, which provides early-childhood education, health and nutrition services to low-income children and families.” [Washington Post, 2/27/21]
  • Like The Two Coronavirus Relief Bills Signed By President Trump, Much Of The American Rescue Plan Is Devoted To Providing Financial Relief To Americans Harmed By The Economic Effects Of The Pandemic. “And like the first two relief bills signed by President Donald J. Trump and an alternate measure proposed this year by 10 Republican lawmakers, much of the Biden plan is devoted to providing financial help to families and businesses harmed by the economic effects of the pandemic. The $1,400 stimulus checks and extension of unemployment benefits are the two biggest single expenditures, according to a breakdown by the Committee for a Responsible Federal Budget.” [Washington Post, 2/27/21]
  • $422 Billion Of The ARP Budget Goes Directly To The American People Struggling During COVID In The Form Of $1,400 Stimulus Checks. “The House bill provides $1,400 stimulus checks, on top of the $600 payments issued through the stimulus bill passed in December. The Committee for a Responsible Federal Budget puts the price tag of this next wave of checks at $422 billion.” [Washington Post, 2/27/21]
  • $246 Billion Of The ARP Budget Goes Towards Funding Expanded Unemployment Benefits For Those Who Lost Their Jobs Due To COVID-19. “Expanded unemployment benefits are scheduled to expire on March 14 (programs phased out for current beneficiaries by April 5), and this deadline is a key driver of the current bill. About 13 percent – $246 billion – of the House version would go toward extending these benefits through August and increasing the federal supplemental payment from $300 per week to $400. As a result of this increase, roughly two-thirds of those on unemployment would receive higher benefits than they did in wages when they were employed. However, most benefits would end altogether by the end of August. A better alternative would extend the current $300 weekly supplement and gradually phase it down over the course of the coming year, extending benefits through all of 2021.” [Committee for a Responsible Federal Budget, 2/24/21]
  • $350 Billion Of The ARP Budget Goes To State And Local Governments Responsible For Paying Essential Workers Like Front Line Nurses And EMTs. “The House law sets aside $350 billion for state and local governments, territories and tribes. Facing deep budget shortfalls, state and local governments have shed 1.3 million jobs since the pandemic began last year. While tax revenue grew in some states last year, the majority — at least 26 states — were hit with declines.” [Washington Post, 2/27/21]
  • $90 Billion Of The ARP Budget Goes To Funding The Disaster Relief Fund, Funeral Expenses Related To COVID, And Job Creating Transportation and Infrastructure Initiatives. “Transportation & Infrastructure: $90 billion; Increase funding for the Disaster Relief Fund and cover funeral expenses related to COVID – $47 billion; Provide grants to transit agencies – $28 billion; Provide grants to airports and aviation manufacturers – $11 billion; Provide grants to communities under economic stress – $3 billion; Grants to Amtrak and other transportation-related spending – $2 billion.” [Committee for a Responsible Federal Budget, 2/18/21]
  • $143 Billion Of The ARP Budget Goes To Expanding The Child Tax Credit, Child Care Tax Credit, And Earned Income Tax Credit Mostly For One Year. [Committee for a Responsible Federal Budget, 2/18/21]
  • $45 Billion Of The ARP Budget Goes To Temporarily Expand ACA Subsidies For Two Years And Subsidize 2020 And 2021 Coverage. [Committee for a Responsible Federal Budget, 2/18/21]

FALSE GOP MYTH: The American Rescue Plan Is A Blue State Bailout.

FACT: The American Rescue Plan Allocates Over $180 Billion, Or Over 51 Percent, Of Its Funding For State And Local Governments To States Or Territories With A Republican Governor Or Senator.

  • The Aid For Local And State Governments Will Go To Governments In Every State And Territory. “The bill would provide $350 billion to state and local governments whose coffers have been hit by a loss of tax revenue during the pandemic, causing many to plan cuts to services and warn of tax increases to allow them to balance their budgets. Republicans have slammed the aid as ‘blue state bailouts,’ rewarding Democratic states for poor financial decisions. But the aid would go to governments in every state and territory, and some conservative economists, like Michael Strain of the American Enterprise Institute, have argued that some relief for state and local governments is necessary, if not the amount proposed by Mr. Biden.” [Wall Street Journal, 2/26/21]
  • Of The $350 Billion To Be Allocated To State And Local Governments, Over $180 Billion, Or Over 51 Percent, Is Going To States With An Elected Republican Governor Or Senator. According to the Government Finance Officers Association, $180.76 Billion Of The $350 Allocated To State And Local Governments By the ARP Is Going To States With Either A Republican Governor Or At Least One Republican Senator. [Government Finance Officers Association, accessed 3/1/21]
  • States And Territories With A Republican Serving In The Role Of Governor Or Senator Include Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Maine, Mississippi, Missouri, Montana, Nebraska, Northern Mariana Islands, North Carolina, New Hampshire, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, West Virginia, Wisconsin, and Wyoming. [Ballotpedia, accessed 3/1/21; Ballotpedia, accessed 3/1/21]
  • Over $27 Billion Of The ARP Budget Is Projected To Be Allocated To Texas, Which Is More Than The Combined Totals Of The So-Called Blue States Of Connecticut, Delaware, Hawaii, Minnesota, Nevada, New Mexico, Rhode Island, And Virginia. [Government Finance Officers Association, accessed 3/1/21]
  • The Per-State Minimum Funding Level In The American Rescue Plan Is $500 Million, While $300 Billion More Will Be Allocated On A State-By-State Level Based On Factors Like State Unemployment Rates, Poverty Levels, And Population. “The CARES Act distributed $140 billion to state and local governments based on population, delivering a minimum of $1.25 billion to each state. That gave the largest per-capita benefits to the states with the smallest populations, including Wyoming and Vermont. Another $3 billion was set aside for Washington, D.C., and U.S. territories. This time around, Democrats have lowered the per-state minimum to $500 million. The remaining $300 billion would be allocated based on unemployment and poverty levels as well as population. Tribal governments and territories would get $24.5 billion. Washington, D.C., would be treated like a state. Advocates say the new formula ensures the money goes where it is needed, as COVID-19’s toll has been uneven across the country. Unemployment in December topped 9% in tourism-dependent Nevada and Hawaii, triple the 3% in Nebraska and South Dakota.” [Reuters, 2/24/21]
  • So-Called ‘Red’ States Like Wyoming, Alaska, And North Dakota Will Be Among The Top 10 Recipients Of Aid On A Per Capita Basis. “Though the new bill would steer more money towards large states, smaller states still fare well. Vermont, Wyoming, Alaska and North Dakota, each with fewer than 1 million residents, are still among the top 10 recipients on a per capita basis.” [Reuters, 2/24/21]

FALSE GOP MYTH: Congress Shouldn’t Spend More Money When $1 Trillion In Aid From Last Year’s Packages Haven’t Even Been Spent Yet.

FACT: The $1 Trillion Is Already Destined For Relief Initiatives And Is Working Its Way Into Communities. American Families Shouldn’t Be Denied Additional Relief Because Some Resources Are Still Being Distributed.

  • The Outstanding $1 Trillion Is Scheduled To Be Released Over Time Through Unemployment Benefits, Small Business Loans, And Tax Breaks And Rebates. “At this point, most of that unspent money — comprehensive estimates place the figure at $1 trillion — has been assigned to various programs that were designed to distribute it over an extended period of time. Enhanced unemployment insurance benefits are sent out weekly. Paycheck Protection Program and other small business aid is supplied as employers apply for them. Enhanced federal Medicaid matching funds are provided to states on a regular basis as long as the public health emergency remains in place. And rebates and tax breaks will be doled out after Americans file their taxes.” [Politico, 2/27/21]
  • The Outstanding Money Dedicated To Tax Breaks Includes Breaks For Charitable Contributions, Paid Leave Tax Credits, Health Savings Accounts Expansion, And The Employee Retention Payroll Tax Credit. [Committee for a Responsible Federal Budget, accessed 3/1/21]
  • Harvard Economics Professor: The Unspent $1 Trillion Is Simply A Reflection Of How Relief Packages Are Designed. “Lawmakers could have a real discussion over substantive aspects of the plan, such as the size of the stimulus checks or who should receive them, said Furman, now a Harvard economics professor. But the unspent $1 trillion is simply a reflection of how the relief packages are designed — namely, to spend money over an extended period of time. “Congress doesn’t legislate once a month for the bills coming up for the next month,” he said. “It is so much better to pass money three months in advance rather than three months late, especially when you’re in the middle of fighting a war.” [Politico, 2/27/21]
  • About $775 Billion Of The ‘Unspent’ $1 Trillion Comes From The $900 Billion Stimulus Signed Into Law In Late December. “In an op-ed published this month by The Washington Post, Mr. Scalise linked to the Committee for a Responsible Federal Budget’s coronavirus spending tracker as his source for this claim. According to the tracker, about $3 trillion has already been spent. But that does not necessarily mean that $1 trillion will remain unused. […] About $775 billion of the ‘unspent’ funding came from the $900 billion stimulus package signed into law in late December, according to the blog post. Funding expected to be doled out over time (loans and Medicaid spending), as well as data lags, also explain some of the disparity.” [Washington Post, 2/27/21]

FALSE GOP MYTH: The American Rescue Plan Is A Progressive Wishlist And Wastes Hundreds Of Millions Of Dollars On “Pet Projects.”

FACT: Less Than Five Percent Of The Overall Package Goes To Job Creating Infrastructure Projects In Red and Blue States To Help Put The Ten Million Americans Out-of-Work Due To COVID Back On The Job.

  • About $90 Billion, Or Less Than Five Percent, Of The American Rescue Plan Would Go Towards Various Job Creating Transportation And Infrastructure Initiatives To Get Americans Back To Work. “About $90 billion would go toward various transportation and infrastructure causes. About $47 billion would increase funding for the Disaster Relief Fund, which is managed by FEMA, and cover funeral expenses tied to covid. Transit agencies would get $28 billion in grants, and $11 billion would go to airports and aviation manufacturers. About $2 billion goes to Amtrak and other transit-related spending.” [Washington Post, 2/27/21]
  • According To The Economic Policy Institute, Infrastructure Spending Of $100 Billion Would Boost Job Growth By Roughly One Million Full-Time Equivalents. “Infrastructure investment could be an extraordinarily useful tool for macroeconomic stabilization. Most estimates of the output “multiplier” for infrastructure investment are substantially higher than for other fiscal interventions. If the fiscal boost of infrastructure investment were accommodated by monetary policymakers, each $100 billion in infrastructure spending would boost job growth by roughly 1 million full-time equivalents.” [Economic Policy Institute, 7/18/17]
  • Job Creating Infrastructure Projects That Would Also Receive Funding Through The ARP Include The ‘Red’ States Of Missouri, Arizona, Indiana, And Utah. “The Bay Area projects are far from the only ones that would be funded. At least 20 others around the country would get money, including several in cities in Republican-run states, including Phoenix, Kansas City, Mo., Gary, Ind., and Ogden, Utah.” [San Francisco Chronicle, 2/25/21]
  • January 2021: Over 10 Million Americans Were Unemployed. “In January, the unemployment rate fell by 0.4 percentage point to 6.3 percent, and the number of unemployed persons decreased to 10.1 million. Although both measures are much lower than their April 2020 highs, they remain well above their pre-pandemic levels in February 2020 (3.5 percent and 5.7 million, respectively).”
  • The Two Job Creating Infrastrastructure Projects In New York City And San Francisco Total 0.006 Percent Of The Overall Cost Of The American Rescue Plan. “House Speaker Nancy Pelosi (D-Calif.) represents San Francisco and Senate Majority Leader Charles E. Schumer is from New York. So it’s no mystery why their cities and states are being name-checked here. The GOP is referring to two provisions. ‘Section 7004 — Great Lakes St. Lawrence Seaway Development Corporation Operations and Maintenance’ calls for $1.5 million to conduct, ‘the operations, maintenance, and capital infrastructure activities of the Seaway International Bridge.’ ‘Section 7006 — Federal Transit Administration Grants’ sets aside over a billion dollars for Capital Investment Grants (CIG). Within this money, it is estimated that $112.5 million would go to the Bay Area Rapid Transit District (BART) and Silicon Valley Phase II Extension Project.” [Washington Post, 2/25/21]

GOP MYTH: The American Rescue Plan Cuts Medicare By $36 Billion. 

FACT: The American Rescue Plan Does NOT Cut Medicare, But It Does Expand ACA Subsidies, Actually Lowering Health Care Costs For Millions Of Americans. Any Cuts To Medicare Would Be The Result Of Republicans Refusing To Waive PAYGO Rules.

  • The GOP Attack Stems From A PAYGO Rule That Corrects For Additions To The Federal Deficit By Automatically Pulling Back Funding From Certain Departments. “A Covid relief bill backed by Democrats could trigger billions of dollars in cuts to Medicare and other federal programs, like ones that support unemployed workers and student-loan borrowers, if it’s ultimately passed. […] The cuts are due to a rule — the PAYGO Act — that corrects for additions to the federal deficit by automatically pulling back funding from certain departments and programs. The pandemic aid measure would raise the federal deficit by $1.9 trillion over a decade, according to a Congressional Budget Office memo issued Thursday by director Phillip Swagel.” [CNBC, 2/27/21]
  • Experts Are Skeptical The Cuts Will Take Effect, As Congress Overrode These Cuts In 2017 With President Trump’s Tax Bill, And Again In 2020 With Other Pandemic Relief Bills. “Experts are skeptical lawmakers would ultimately let the budget measures take effect. For one, they typically don’t. Congress overrode the automatic cuts that would have been triggered by former President Donald Trump’s signature tax cut in 2017, for example. It also did so last year to cancel the deficit effect of earlier pandemic aid measures.” [CNBC, 2/27/21]
  • Support From Republicans For Waiving The Spending Cuts Is Likely, As Funding For Farm Subsidies, Defense, And Border Protection Would Be Wiped Out. “Waiving them this year would require Republican support. It’s likely the GOP will opt to do so, experts said. Otherwise, they’d also be choosing to reduce funding for things like farm subsidies, defense, and customs and border protection. Further, the deficit from Covid relief would essentially wipe out all funding for the aforementioned programs, CBO said. (Medicare is an exception — its cuts are capped at 4% whereas other programs don’t have a limit.)” [CNBC, 2/27/21]
  • A Former Senior CBO And OMB Official Said “That Ain’t Gonna Happen” When Asked About The Possible Spending Cuts. “‘That ain’t gonna happen,’ said Barry Anderson, an independent consultant who formerly served as a senior official at the Congressional Budget Office and Office of Management and Budget. ‘They’ll waive it.’”[CNBC, 2/27/21]
  • $45 Billion Of The ARP Budget Goes To Temporarily Expand ACA Subsidies For Two Years And Subsidize 2020 And 2021 Coverage. [Committee for a Responsible Federal Budget, 2/18/21]
  • The ARP Includes Changes To The ACA Aiming To Make Healthcare More Affordable For Millions Of Americans Who Lost Their Employer-Based Health Coverage During The Pandemic. “Democrats’ coronavirus relief proposal includes major changes to the Affordable Care Act, aiming to make health insurance more affordable for the millions of people who have lost their employer-based coverage during the pandemic. […] The Ways and Means legislation would enhance ACA subsidies for two years. People making up to 150% of federal poverty would be eligible for fully subsidized plans, and no one — regardless of their income — would pay more than 8.5% of their income for health insurance. People receiving unemployment would also be eligible for full subsidies for a year. The Energy and Commerce legislation incentivizes states that haven’t done so to expand Medicaid.” [Axios, 2/10/21]