2021 Education Budget, Part 1: Federal - American Rescue Plan

The American Rescue Plan Act passed by Congress earlier this month includes additional monies for Georgia with a large portion of funds directed towards education. Here are just a few standout funding line items coming to Georgia:

Early Childhood Education & Family Supports

• Temporarily expanded child tax credit for families including higher amounts for young children and families through the end of 2021
• Child and Dependent Care Tax Credit increases substantially
• Increased Supplemental Nutrition Assistance Program (SNAP) supports
• Increased funding for the Child Care & Development Block Grant which funds a significant portion of child care programs in Georgia including Child & Parent Services (CAPS)
• Continues child care stabilization grants to support child care providers, most of whom are small business owners in Georgia
• Governor’s discretionary funds for the education of significantly impacted students
• Expanded Paycheck Protection Program loans which now includes some non-profit businesses

K-12 Schools

• Additional funds for COVID-19 mitigation expenses such as HVAC, reduced class sizes, personal protective equipment and more
• Increased funding for students with disabilities
• Governor’s discretionary funds for the education of significantly impacted students
• Maintenance support – ensuring that education funding levels do not reduce sharply from Georgia’s previous three years of education budgeting
• Additional funding for the federal Emergency Connectivity Fund which pays for internet connectivity in schools and libraries
• Additional funding for after-school and summer education programs

Higher Education

• COVID-19 mitigation expenses similar to K-12
• Governor’s discretionary spending for the education of significantly impacted students
• Maintenance support – ensuring that education funding levels do not reduce sharply from Georgia’s previous three years of education budgeting
• Removes taxes on student loan forgiveness options from 2020 through 2026

Thank you to Voices for Georgia’s Children for a helpful breakdown of the Act!

In the next edition we’ll look at the 2022 state budget currently under consideration by the Georgia General Assembly.