President Joe Biden.
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House Democrats are pushing to make permanent a child tax credit stimulus payment program. The proposal would provide $250 or $300 checks monthly, depending on the child’s age. Biden is likely to temporarily extend it instead, rejecting pressure from Democrats. See more stories on Insider’s business page.
House Democrats unveiled a bill on Monday to keep the one-year child tax credit expansion, an anti-poverty initiative which formed a major part of President Joe Biden’s $1.9 trillion stimulus plan approved a month ago.
The plan was introduced by a trio of Democrats including Rep. Rosa DeLauro, chair of the House Appropriations Committee; Rep. Suzan DelBene, head of the centrist New Democrat coalition; and Rep. Ritchie Torres of New York.
It would maintain the strengthened child tax credit, increased to $3,600 per child under age 6 and $3,000 for kids between 6 and 17. The amount previously stood at $2,000, and families with little or no tax obligations could not tap into the program.
Under Biden’s stimulus, parents have the option of receiving the payment from the IRS as a monthly check of $250 or $300 depending on their children’s age. The Tax Policy Center projected in March that 90% of families would benefit from the program, and experts said implementing it would halve the country’s child poverty rate.
“We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit by increasing the benefit to families and providing payments monthly,” DeLauro said in a statement. “Children and families must be able to count on this benefit long after the end of this pandemic.”
Biden is likely to reject permanently expanding the measure in the “American Families Plan” and instead extend it through 2025 at a cost of $400 billion, The Washington Post reported. It would lapse the same year of President Donald Trump’s tax cuts for individuals, a temporary measure in the 2017 tax law.
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