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RESEARCH BRIEF | B.005.0321
March 2021
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The American Rescue Plan Act (ARPA) of 2021 invests unprecedented amounts of funding in the prenatal-to-3 period. As a result of this investment, states will have more support and choices to effectively build a comprehensive and equitable prenatal-to-3 system of care. The new law includes a number of provisions critical to supporting individuals and families during the COVID-19 pandemic and beyond.
Signed into law on March 11, 2021, ARPA broadens states’ flexibility to effectively support children and families and build a comprehensive prenatal-to-3 system of care. The $1.9 trillion dollar stimulus bill has major implications for the prenatal-to-3 period because it:
- Expands eligibility for programs;
- Increases the value and refundability of tax credits for families; and
- Provides substantial funding increases to public programs serving families and caregivers.
How Will the American Rescue Plan Strengthen the Prenatal-to-3 System of Care? A Summary of the 2021 Act’s Benefits for Infants and Toddlers includes a discussion of provisions related to the effective policies and strategies in our annual Prenatal-to-3 State Policy Roadmap, as well as additional policies that have implications for the prenatal-to-3 period. See below for the brief table of contents.
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Table of Contents
- Impact on Evidence-Based Solutions
- A Boost to Families’ Access to Needed Services, Such as Health Care and Nutritious Food
- More Affordable Health Insurance for Families
- Options to Extend Health Insurance Coverage to Postpartum Women
- Incentives for Nonexpansion States to Expand Health Insurance Eligibility
- Additional Funding for Pediatric Mental Health Care Access
- Greater Value for the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
- Enhancements to Parents’ Ability to Work Through Historic Supports to Child Care
- A Historic Investment in Child Care Subsidies
- A Boost to Household Resources That Will Significantly Reduce Child Poverty
- An Expanded, Fully Refundable Child Tax Credit
- A More Generous Child and Dependent Care Tax Credit
- An Expanded Earned Income Tax Credit for Low-Income Workers
- Additional Support for Housing Programs
- A Third Round of Economic Stimulus Payments
- Support for the Unemployment System
- Extensions of Paid Leave Programs Benefiting Parental Health and Emotional Wellbeing
- Reinforcing Tax Credits for Paid Sick and Family Leave
- Support for Building Nurturing and Responsive Child-Parent Relationships Through Greater Home Visiting Funding
- Additional Funding for Home Visiting
- Critical Support and Stabilization of Child Care
- Additional Investment to Support Early Head Start
- Funding to Stabilize the Child Care Industry
- Support for Programs that Promote Optimal Child Health and Development
- Additional Funding for Early Intervention
- More Support for the National Child Traumatic Stress Network
- Generous Support for Child Abuse Prevention
Recommended Citation
Prenatal-to-3 Policy Impact Center. (2021). How Will the American Rescue Plan Act Strengthen the Prenatal-to-3 System of Care? A Summary of the 2021 Act’s Benefits for Infants and Toddlers. Child and Family Research Partnership, Lyndon B. Johnson School of Public Affairs, University of Texas at Austin. B.005.0321. https://pn3policy.org/resources/how-will-the-american-rescue-plan-act-strengthen-the-prenatal-to-3-system-of-care
© March 2021, Prenatal-to-3 Policy Impact Center, All Rights Reserved. The Prenatal-to-3 Policy Impact Center at The University of Texas at Austin LBJ School of Public Affairs translates research on the best public investments into state policy actions that produce results for young children and society.
- H.R. 1319, 117th Congress (2021-2022). American Rescue Plan Act of 2021. https://www.congress.gov/117/bills/hr1319/BILLS-117hr1319enr.pdf
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- H.R. 2590, 111th Congress (2009-2010). Patient Protection and Affordable Care Act. https://www.hhs.gov/sites/default/files/ppacacon.pdf
- Park, E., & Corlette, S. (2021, March) American Rescue Plan Act: Health coverage provisions explained. Georgetown University Health Policy Institute, Center for Children and Families. https://ccf.georgetown.edu/wp-content/uploads/2021/03/American-Rescue-Plan-v2-3.pdf
- National Conference of State Legislators (NCSL). American Rescue Plan Act of 2021. https://www.ncsl.org/ncsl-in-dc/publications-and-resources/american-rescue-plan-act-of-2021.aspx
- U.S. Centers for Medicare & Medicaid Services. (n.d.) The ‘metal’ categories: Bronze, silver, gold, and platinum. https://www.healthcare.gov/choose-a-plan/plans-categories/
- U.S. Centers for Medicare & Medicaid Services (n.d). 3 things to know before you pick a health insurance plan. https://www.healthcare.gov/choose-a-plan/comparing-plans/
- Kaiser Family Foundation (2020, January 1). Medicaid and CHIP income eligibility limits for pregnant women as a percent of the federal poverty level. https://www.kff.org/health-reform/state-indicator/medicaid-and-chip-income-eligibility-limits-for-pregnant-women-as-a-percent-of-the-federal-poverty-level/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D
- Eckert, E. (2020, February 6). It’s past time to provide continuous Medicaid coverage for one year postpartum. Health Affairs. https://www.healthaffairs.org/do/10.1377/hblog20200203.639479/full/
- Ranji, U., Gomez, I., & Salganicoff, A. (2021, March 9). Expanding postpartum Medicaid coverage. Kaiser Family Foundation. https://www.kff.org/womens-health-policy/issue-brief/expanding-postpartum-medicaid-coverage/
- Rudowitz, R., Corallo, B., & Garfield, R. (2021, February 18). New incentive for states to adopt the ACA Medicaid expansion: Implications for state spending. Kaiser Family Foundation. https://www.kff.org/coronavirus-covid-19/issue-brief/new-incentive-for-states-to-adopt-the-aca-medicaid-expansion-implications-for-state-spending/
- H.R.6201, 116th Congress. Families First Coronavirus Response Act. https://www.congress.gov/bill/116th-congress/house-bill/6201/text
- Prenatal-to-3 Policy Impact Center. (2020). Prenatal-to-3 policy clearinghouse evidence review: Expanded income eligibility for health insurance (ER0920.001A). Child and Family Research Partnership. Lyndon B. Johnson School of Public Affairs, University of Texas at Austin.
- Health Resources & Services Administration. Maternal & Child Health Bureau. Pediatric Mental Health Care Access Program. https://mchb.hrsa.gov/training/projects.asp?program=34
- Consolidated Appropriations Act, 2021. Public Law No: 116-260 (2021). https://www.congress.gov/bill/116th-congress/house-bill/133?s=3&r=133
- Siegel, R. (2021, February 27). What’s in the House’s $1.9 trillion coronavirus plan. Washington Post. https://www.washingtonpost.com/us-policy/2021/02/26/american-rescue-plan-house-coronavirus-stimulus/
- Prenatal-to-3 Policy Impact Center. (2021). Prenatal-to-3 policy clearinghouse evidence review: Child Allowance (ER 22A.0321). Child and Family Research Partnership. Lyndon B. Johnson School of Public Affairs, University of Texas at Austin. https://pn3policy.org/betapolicyclearinghouse/child-allowance/
- Marr, C., Cox, K., Hingtgen, S., Windham, K., & Sherman, A. (2021). House COVID relief bill includes critical expansions of child tax credit and EITC. Center on Budget and Policy Priorities. https://www.cbpp.org/research/federal-tax/house-covid-relief-bill-includes-critical-expansions-of-child-tax-credit-and
- Parolin, Z., Collyer, S., Curran, M., & Wimer, C. (Mar. 11, 2021). The potential poverty reduction effect of the American Rescue Plan. Center on Poverty and Social Policy at Columbia University. https://static1.squarespace.com/static/5743308460b5e922a25a6dc7/t/604aa2465cfc4a35b8a1c236/1615503943944/Poverty-Reduction-Analysis-American-Rescue-Plan-CPSP-2021.pdf
- Lieber, R. & Bernard, T.S. (Mar. 11, 2021). F.A.Q. on stimulus, unemployment and tax rebates. New York Times. https://www.nytimes.com/live/2021/03/06/business/stimulus-check-plan-details
- Kaplan, T. (Mar. 10, 2021). Here’s how the Senate pared back Biden’s stimulus plan. New York Times. https://www.nytimes.com/2021/03/06/us/politics/stimulus-house-senate-bills.html?name=styln-stimulus-biden®ion=TOP_BANNER&block=storyline_menu_recirc&action=click&pgtype=LegacyCollection&impression_id=&variant=show
- Clark, C. (Mar. 11, 2021). This time, the stimulus package helps more college students. ABC4 News. https://www.abc4.com/news/business/nerdwallet/this-time-the-stimulus-package-helps-more-college-students/
- Hardy, A., & Gallagher Robbins, K. (2021). Child care relief funding in American Rescue Plan: State-by-state estimates. CLASP. https://www.clasp.org/publications/fact-sheet/child-care-estimates-american-rescue-plan
- Johnson-Staub, C. (2021). State implementation of the historic COVID child care relief and stabilization funds. CLASP. https://www.clasp.org/publications/fact-sheet/state-implementation-historic-covid-child-care-relief-and-stabilization
- COVID relief passes with aid for millions of children. Campaign For Children. (2021, March 10). [First Focus: Campaign for Children]. https://campaignforchildren.org/news/press-release/covid-relief-passes-with-aid-for-millions-of-children/
- Bosovik, Y. (Mar. 8, 2021). Senate passes latest COVID-19 stimulus bill. BKD CPAs & Advisors. https://www.bkd.com/alert-article/2021/03/senate-passes-latest-covid-19-stimulus-bill
- National Child Traumatic Stress Network. Who we are. https://www.nctsn.org/about-us/who-we-are
- Prenatal-to-3 Policy Impact Center. (2020). Prenatal-to-3 policy clearinghouse evidence review: Comprehensive screening and referral programs (ER 0920.006A). Child and Family Research Partnership. Lyndon B. Johnson School of Public Affairs, University of Texas at Austin. http://pn3policy.org/policy-clearinghouse/comprehensive-screening-and-referral-programs
RELATED WEBINAR
How Will the American Rescue Plan Strengthen the Prenatal-to-3 System of Care?
Tuesday, March 30, 2021, 12:00-1:30 pm CT
Watch recording on event page
Explore the Evidence
Prenatal-to-3 State Policy Roadmap
Prenatal-to-3 Policy Clearinghouse