With Treasury Secretary pushing for full-throttle stimulus, after which she says “full employment” can return in the US as soon as next year (and 2025 if not), House Democratic leaders are set to unveil legislation on Monday that would add at least $3,000 per child, advancing a key provision in the Biden administration’s $1.9 trillion COVID-19 relief package, according to the Washington Post. The bill, an enhanced Child Tax Credit, would represent an expansion of the existing $2,000 Child Tax Credit under current law.
“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,” said Richard Neal, Chairman of the Ways and Means Committee, who has spearheaded the creation of the enhanced Child Tax Credit bill, according to a committee spokesperson.
Under the new legislation, children under the age of six would receive $3,600 each, while ages six through 17 would earn $3,000 per child per year. Full benefits will be paid to single parents earning up to $75,000 per year, and couples earning up to $150,000, after which the monthly payments would phase out.
If passed by Congress, payments would begin in July for one year, and would become fully refundable for the year.
Currently, the Child Tax Credit provides up to $2,000 per child under the age of 17, which phases out for single parents making over $200,000 and married couples making $400,000. Read more…