American Rescue Plan Expands Benefits for Federal Workforce

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021, a $1.9 trillion COVID-19 relief package that expands benefits for the federal workforce and Americans.

The American Rescue Plan expands paid leave for federal employees. The plan allocates $570 million for emergency paid leave and gives federal employees 600 hours (15 weeks) of paid leave for pandemic-related reasons, such as caring for someone who is ill. Employees can also use this paid leave to get vaccinated or recover from vaccine side effects, if any.

Federal employees are barred from using the emergency paid leave at the same time as other paid leave, and benefits are capped at $2,800 per biweekly pay period. Federal employees will be able to use the emergency leave through September 2021.

Employees can file a claim with the Department of Labor to receive workers compensation if they already contracted COVID-19. Everett Kelley, National President of the American Federation of Government Employees, applauded this provision, saying, “This change will allow employees or their survivors to receive workers’ compensation benefits under the Federal Employees Compensation Act without facing denials or lengthy appeals.”

President of the Federal Law Enforcement Officers Association (FLEOA) Larry Cosme applauded provisions codifying FECA presumptions in the American Rescue Plan. Cosme said, “Under this presumption, a federal employee’s diagnosis with COVID-19 between January 27, 2020 and January 37, [sic] 2023, would be deemed to have been contracted as a result of the employee’s employment for any claim for benefits under federal workers’ compensation program. These benefits include disability compensation, medical services, and survivor benefits. This language codifies and clarifies an administrative presumptive standard that the Labor Department put in place in April 2020 at FLEOA’s request. Under that administrative presumption, DOL has approved over 3,500 claims. Still, the numbers are climbing and to protect FLEOA’s members, a more permanent presumption was necessary.”

Also included in the COVID-19 relief package are IT modernization provisions. For example, the bill includes $1 billion for the Technology Modernization Fund (TMF), $650 million for cybersecurity, and $350 million for other IT modernization efforts.

Representative Gerry Connolly (D-VA) said the additional funding will help agencies respond to the pandemic. He said, “Throughout this global health crisis, millions of Americans facing illness, unemployment, food insecurity and an inability to pay their mortgages or rent have looked to the federal government for help. Those in need have had their misery exacerbated by a broken IT infrastructure that has prevented them from receiving timely support.”

Additionally, the American Rescue Plan provides $5 million to the HHS Office of Inspector General (OIG) for oversight activities with respect to the public health and social services emergency fund, also known as the Provider Relief Fund. In February 2021, the Department of Justice announced their first criminal indictment resulting from misappropriation of the Provider Relief Fund. Under the new plan, HHS OIG will have more funding and authority to conduct audits and prevent further crime.

Federal contractors also get extended benefits through the new plan through Section 3610, which stipulates that agencies can continue to pay contractors if they cannot work for pandemic-related reasons. This extension resulted from a bipartisan push through the Senate by Senators Mark Warner (D-VA) and Marco Rubio (R-FL).

David Berteau, President of the Professional Services Council, said of this extension, “We’re really delighted that Congress, the Senate actually voted, had 94 votes in favor of the amendment on the floor on Saturday to extend section 3610 through Sept. 30.”