FACT CHECK: Is 92 Percent Of The American Rescue Plan Going To ‘Foreign Entities’?

Elias Atienza | Senior Reporter

An image shared on Facebook claims 92 percent of the $1.9 trillion American Rescue Plan Act is going to “foreign entities.”

Verdict: False

There is no evidence that 92 percent of the American Rescue Plan goes to “foreign entities.” Around $10.5 billion of the bill is for international aid, which is less than one percent of the $1.9 trillion plan.

Fact Check:

President Joe Biden signed the American Rescue Plan Act of 2021 into law March 11 to address the economic effects of the COVID-19 pandemic.

An image claims in a Facebook post that out of the $1.9 trillion included in the package, only around $152 billion goes to “struggling citizens” while the rest goes to “foreign entities.” However, Check Your Fact looked through the entirety of the bill and found no indication that over $1.7 trillion goes to “foreign entities.”

The package allocates over $400 billion, or roughly 21 percent, to provide $1,400 direct stimulus payments to many individual taxpayers. In addition to the direct payments, the act includes $163 billion, or roughly 8.5 percent, for unemployment insurance, $170 billion, or about 10 percent, to help reopen schools and $48 billion, or around 2 percent, in aid to small businesses, among other things, according to Reuters. It also provides $350 billion, which is about 18 percent, in aid to state, local and tribal governments, according to a summary from the National Conference of State Legislatures.

Stan Veuger, a resident scholar of economic studies at the American Enterprise Institute, told Check Your Fact in a phone interview that the claim was false. (RELATED: Viral Post Claims Only 9 Percent Of The American Rescue Plan ‘Goes To The American People’)

“It’s hard to think how you would get to 8 percent being spent abroad, let alone 92 percent. If you look at the bill, it’s a little under $2 trillion. About a quarter is checks that overwhelmingly go to US residents, about a quarter goes to state and local governments, that are obviously, by definition, in the US and just those two categories are half of the bill,” Veuger said.

Biden originally proposed $11 billion in his announcement of the American Rescue Plan for “support to the international health and humanitarian response” in fighting COVID-19. About $10.54 billion is going to international aid, such as $9.75 billion to the Committee on Foreign Relations and $750 million “for funding for global health,” according to the text of the act.

This isn’t the first time social media users have shared incorrect claims about funds allocated in the American Rescue Plan Act. Check Your Fact previously debunked the false claim that only 9 percent of the plan “goes to the American people.”

Elias Atienza

Senior Reporter
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