Nearly a year after the first major stimulus package was passed, the American Rescue Plan Act of 2021 has officially been signed into law by President Joe Biden. The $1.9 trillion bill is a historical piece of legislation that will lift millions out of poverty and pull the country through to the other side of the pandemic.

During a signing event, Biden described his sentiment toward the bill. “I believe this is, and I believe most people do as well, this historic legislation is about rebuilding the backbone of this country,” Biden said just before signing the bill. “And giving people in this nation—working people, middle class folks, people who built the country—a fighting chance.”

The $1.9 trillion stimulus package gives necessary financial lifelines to Americans suffering as a result of the Covid-19 pandemic. Although the country’s vaccination program is gaining traction, the negative effects of the pandemic are still being felt across household finances—nearly 10 million Americans were unemployed in February.

Here are the big ticket items in the stimulus package and how they may impact you.

A Round of $1,400 Stimulus Checks

The stimulus package provides another round of economic impact payments, also referred to as stimulus checks, to qualifying Americans. This is the third round of direct payments provided by the federal government in the past year—but this round of checks are far more targeted than previous ones.

If you qualify, you will receive $1,400: This includes single tax filers making up to $75,000 per year, married couples filing jointly making up to $160,000, or head of households making up to $112,500.

If you make more than this, you may still receive a check but not for the maximum amount—and once you pass a certain income threshold, you won’t receive a stimulus payment. Individuals making $80,000 or more, married couples filing jointly making $160,000 or more, and heads of households making $120,000 or more will not receive any stimulus money.

Dependents also qualify for stimulus money, but how much they’ll receive will depend on the income of the taxpayer who claims them on their return. The total amount per dependent, including adult dependents, is $1,400.

There is no definite date yet of when stimulus checks will be sent out, but early reports suggest by the end of March. After the last round of stimulus checks were approved by former President Donald Trump, the IRS began distributing them within a week.

Read More: Third Stimulus Check Calculator: Will You Get The Full $1,400?

Extended Unemployment Benefits—$300 a Week Until September

The package will extend a $300-per-week federal unemployment supplement through Sept. 6. The first $10,200 of unemployment benefits received in 2020 will be tax-free for individuals with adjusted gross incomes (AGI) below $150,000. If you qualify for the tax-free benefit and you already filed taxes for 2020, you will likely need to  file an amended return.

In addition, the bill will extend pandemic unemployment assistance (PUA) for self-employed people and gig workers, and extend the length of time people can claim unemployment benefits. People who have exhausted their state unemployment benefits will get an extension through Sept. 6.

Calculator: How Much Unemployment Could You Receive In Your State? 

The amount and length of additional unemployment support has been a key point of debate for this round of stimulus legislation. The extension of benefits signed by former President Donald Trump in late December were set to expire in March. Legislators strategized that another stimulus in March would be essential to minimize a looming gap in benefits for people who are out of work due to the pandemic’s effect on the economy.

While the unemployment rate improved slightly in February, there were still more than 9 million fewer jobs available than February 2020, prior to the pandemic shutdown in the U.S. And the number of people unemployed for more than 27 weeks—classified as long-term unemployed, meaning they’ve been out of work for more than six months—has increased for 10 months in a row. Employment is not expected to recover to pre-pandemic levels until 2024, according to an estimate by the Congressional Budget Office.

Housing Assistance

The Census previously estimated 30-40 million people were at risk of eviction in the next several months if the federal government didn’t intervene. The stimulus package includes billions in funding for housing assistance, including:

  • $21.5 billion for state and local governments to help low-income households pay missed rent, as well as funding for rent assistance and utility bill payments
  • $10 billion to help homeowners pay their mortgages, utility bills and property taxes
  • $5 billion to assist people at risk of homelesness
  • $5 billion in emergency housing vouchers for those who are currently experiencing homelessness

Guidance on how you can apply for these forms of aid has not been released yet.

Read more: Emergency Rental Help Just Got A $20 Billion Bump—Here’s What Renters Should Know

The new funding is in addition to a federal foreclosure moratorium that lasts through June and applies to federally-backed mortgages. Housing experts were long critical of the moratorium, saying it didn’t do enough to help renters, since it only protected them from being evicted although rent was still technically due. The funding in the stimulus package aims to solve that problem by providing direct payments for those struggling with rent and utility payments.

Changes to Tax Credits

The stimulus package includes temporary changes to two of the most popular tax credits —

the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).

The EITC is a tax credit that provides financial assistance to workers earning around $57,000 or less. The credit is partially refundable (up to $1,400), which means it can reduce your taxes or increase your refund.

You may qualify for the EITC with or without children but currently, the credit is fairly small for people without kids. For 2021, you can qualify for a maximum credit of $6,728 if you have up to three children.  However, for childless taxpayers, the total amount you can claim is $543.

Biden proposes to temporarily increase the EITC for childless workers for one year, allowing those who qualify to claim a credit of up to $1,500. The EITC will remain unchanged for those with kids.

The bill also contains big changes to the child tax credit although they’re temporary and will only last for one year. Under the current law, a person might qualify to claim a credit of up to $2,000 per child under 17. Biden’s plan greatly boosts the credit, increasing the CTC up to $3,600 for children ages under the age of 6. Children ages six to 17 might qualify for a credit of up to $3,000. Another provision in the package would allow the credit to be fully refundable to those who qualify.

Families would also have an option to receive monthly advanced payments in lieu of claiming the credit on their tax return. This would allow families to obtain financial support throughout the year, instead of waiting to receive the payment when filing during tax season.

Health Care Coverage

One provision of the stimulus package that hasn’t gotten as much attention as others is its quiet alteration of the Affordable Care Act (ACA). The bill increases the ACA’s premium tax credits for 2021 and 2022. Previously, people were only eligible for tax credits if their annual income was within 400% (about $51,000 for individuals) of the federal poverty line—that income cap is now eliminated, making more people eligible for a reduced premium payment. The new subsidies will last through the end of 2022. The Congressional Budget Office estimates the income cap elimination would decrease the amount of Americans without health insurance by 1.3 million.

As estimated 5.4 million Americans lost their health insurance due to the coronavirus pandemic between February and May 2020, according to a study by Families USA, a nonpartisan consumer advocacy group. There is a special Covid-19 related ACA enrollment period happening now through May 15, where you can apply for health insurance outside the normal enrollment period at the end of the year. If you lost your health insurance coverage during the pandemic, you can apply and if you’re already enrolled, you can change your plan. To apply for health insurance through the marketplace, visit healthcare.gov.

Read more: 5 Things To Know About The Health Insurance Marketplace Special Enrollment Period

Another provision that has gotten little of the overall stimulus package’s spotlight is a temporary subsidization of COBRA coverage (the health insurance coverage provided to individuals when they lose their jobs). The Senate voted on and approved COBRA coverage being 100% covered for newly unemployed Americans, meaning they won’t have to pay a penny to keep health care coverage after losing their jobs, through the end of September.

COBRA is a last-ditch option for many Americans, in part because it can be prohibitively expensive. You are responsible for paying the full premium for your health insurance, without any help from your previous employer, plus a 2% administrative fee. The Kaiser Family Foundation (KFF) reports the average annual cost of employer-sponsored health care coverage in 2019 was $7,012 for individuals and $20,599 for families. The new changes will finally temporarily make COBRA coverage a viable option for Americans who unexpectedly lose their jobs and employer-sponsored health coverage.

Additional reporting by Lisa Rowan and Kemberley Washington.