How the American Rescue Plan Impacts Tacoma

The American Rescue Plan, signed by President Joe Biden earlier this month, allocates $4.25 billion to Washington State just as legislators in Olympia prepare new, two-year budget proposals. In addition, $2.6 billion is to be allocated for local government funding, which must be distributed by the State within 30 days upon receipt of funds. The City of Tacoma will receive $63 million of this portion. 

Continue reading below to learn how much State and Local governments expect to receive in the latest round of COVID-19 relief aid. 


  • K-12 Emergency Relief Fund | $1.9 Billion to provide the resources schools need to reopen safely for in-person instruction and address significant impact of the pandemic on students’ education and well-being.

OSPI must distribute 90% of funds to local education agencies based on Elementary and Secondary Education Act (ESEA) Title I share. State may retain half of one percent for administrative costs.

  • Higher Education Emergency Relief Fund | $655 Million awarded directly to institutions of higher education. At least half of the funding institutions receive must be distributed to students in the form of emergency grants to prevent hunger, homelessness, and other hardships caused by COVID-19.


  • Supplemental Funding for Childcare | $635 million to help child care providers keep their doors open and reduce costs for struggling families.


  • Emergency Funding for Head Start | $13 Million to maintain access to services for children and families.


  • Child Tax Credit | Temporarily expands the tax credit, increasing the amount to $3,000 for children ages 6 to 17 and $3,600 for children under age 6. Families eligible for the full credit will get payments of up to $300 per child per month from July through the end of the year.


  • $7.25 Billion in new money for the small-business loan program. Nonprofit eligibly expanded. 
  • Application period not expanded. Deadline to apply for PPP is still March 31, 2021.



  • Emergency Rental Assistance | $404 million 
  • Pierce County residents can apply for Rental Assistance  by clicking HERE


  • State Aid | $4.25 Billion will go to the state level just as legislators in Olympia prepare new, two-year budget proposals that fund everything from schools and parks, to prisons, environmental programs and social services.
  • Local Aid | $2.6 Billion for local government funding to be distributed by the State within 30 days upon receipt of funds. Tacoma will receive $63 million of this portion. 


  • Stimulus Check | $1,400 for Individuals earning up to $75,000 and couples earning up to $150,000. An additional $1,400 payment for each dependent claimed on their tax returns.
  • Unemployment Insurance Assistance | $300 per week through September 6, 2021.