American Rescue Plan

Definition

The American Rescue Plan is a $1.9 trillion economic stimulus bill passed by the U.S. Congress and signed into law by President Joe Biden in March 2021 to speed up the United States' recovery from the economic and health effects of the COVID-19 pandemic.

Analogy

Think of it like a financial energy drink for the country, giving it a quick boost to help recover from the fatigue caused by COVID-19.

Related terms

Stimulus Package: A coordinated effort by the government to increase spending and investment to "stimulate" an economy out of a downturn.

CARES Act: An earlier $2.2 trillion economic stimulus bill passed in response to the economic fallout of the COVID-19 pandemic in 2020.

Economic Recovery: The process of reallocating resources and workers from outdated or failing businesses towards more productive uses, following an economic recession.