March 17, 2022

ICYMI Smith Op-Ed: One Year Later - Why Biden's "American Rescue" Failed


In a recent op-ed published in the Washington Examiner, to mark the one-year anniversary of President Biden’s so-called American Rescue Plan (ARP), House Budget Committee Republican Leader Jason Smith (MO-08) exposes the law’s destructive legacy. A year in, polling now shows that Americans are highly skeptical of the President’s bill, as they face the highest inflation in 40 years, massive worker shortages, and a huge trail of waste left behind by the Democrats’ $2 trillion spending spree.

Waste and Abuse of Taxpayer Dollars

The Biden Administration has wasted and mismanaged — or encouraged others to waste and mismanage — much of the money in ARP, which included a $500 billion bailout to state and local governments:

Diverting COVID money to the Southern Border

The Biden Administration diverted $2 billion of public health money to house the surge of illegal immigrants at the southern border as a result of the President’s disastrous border policies:

  • $850 million diverted from COVID-19 testing.
  • $151 million diverted from building a supply chain for vaccines and therapeutics.
  • $850 million diverted from replenishing the National Strategic Stockpile.

Job Creation Promises Fell Short

Despite Democrats’ promises that their bill would create 4 million jobs, a recent study found that the bill failed to create a single one. It’s no surprise, given the bill put $400 billion towards policies that encouraged people to stay out of the workforce:

  • The bill eliminated work requirements for federal food assistance programs and the Child Tax Credit.
  • Approximately 1.8 million Americans reportedly turned down a job because of the extended unemployment bonuses.

ARP Ignited Inflation

Before the bill passed, Democrats were warned this law would cause a spike in consumer prices.

  • Former Obama economic advisor Larry Summers warned it would cause “inflationary pressures of a kind we have not seen in a generation.”
  • The San Francisco Bank of the Federal Reserve later found the law helped ignite the highest inflation in 40 years.

Excerpt: “One year in, it is already clear that the explosion of high prices, worker shortages, and a lagging economy limping its way to recovery along a trail of wasteful spending will be the legacy of President Biden’s so-called American Rescue Plan.” Read the full op-ed. Read House Budget Committee Republicans’ Fact Sheet on the American Rescue Plan.