House Democrats will unveil a bill Monday providing tens of millions of Americans with $3,000 per child in order to put a dent in child poverty.
The enhanced Child Tax Credit Bill would provide $3,600 over the course of a year for children under the age of six. The bill will provide $3,000 per child between the ages of six and 17. Individuals making up to $75,000 and couples making $150,000 will qualify for the credit.
The payments will begin in July in order to give the Internal Revenue Service time to set up the distribution and will begin to phase out after the income levels above. The legislation would eliminate current government assistance programs including the Temporary Assistance for Needy Families and deductions for state and local taxes
“The pandemic is driving families deeper and deeper into poverty, and it’s devastating. We are making the Child Tax Credit more generous, more accessible, and by paying it out monthly, this money is going to be the difference in a roof over someone’s head or food on their table,” Chairman of the Ways and Means Committee Richard Neal said in a statement to CNN.
House Democrats say the monthly payments will give parents more options rather than a lump sum at tax time. The credit will also be fully refundable for the year, helping millions of low-income families, who might make too little to qualify for the credit.
Reps. Rosa DeLauro (CT), Suzan DelBene (WA), and Ritchie Torres of (NY) will introduce legislation Monday to make the credit permanent.
DeLaruo, who’s been working on boosting the child tax credit since 2003, said in a statement the finish line is visible, but they have to act now..
“We cannot stop here. We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit, DeLauro said. One year is not enough for the children and families battling not just the coronavirus, but poverty, too.”
Several Republicans including Senator Mitt Romney (R-UT) supports increasing the child tax credit and last week proposed a bill providing $350 per month for young children and $250 per month for each school-aged child.
“American families are facing greater financial strain, worsened by the COVID-19 pandemic, and marriage and birth rates are at an all-time low,” Romney said. “On top of that, we have not comprehensively reformed our family support system in nearly three decades, and our changing economy has left millions of families behind. Now is the time to renew our commitment to families to help them meet the challenges they face as they take on most important work any of us will ever do—raising our society’s children.”
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