A new plan by Congressional Democrats would give families up to $3,600 per child this year, as part of President Biden's COVID-19 relief plan.
U.S. Representatives Rosa DeLauro (CT-03), Suzan DelBene (WA-01), and Ritchie Torres (NY-15), are behind the American Family Act which would:
- Increase the Maximum Child Tax Credit and Pay Benefits Monthly for All Children under 17. The bill would expand the CTC to $250 per month ($3,000 per year) for children 6 years of age or older and $300 per month ($3,600 per year) for children under 6, up from the current maximum of $2,000 per year.
- Make Credit Fully Refundable. The bill would make the CTC fully refundable, meaning that all low-income families would receive the full credit for each child. The current CTC only begins to phase-in after a taxpayer has earned $2,500 of income and at a rate of 15 cents for every dollar of additional income. In addition, only $1,400 of the $2,000 credit is refundable.
- Benefit the Middle Class. The bill would provide a tax credit for all individuals with children who earn less than $150,000 per year and all married couples with children who earn less than $200,000 per year.
On Wednesday, President Biden signaled his support for making the Child Tax Credit permanent, and following his support, U.S. Representatives Rosa DeLauro (CT-03), Suzan DelBene (WA-01), and Ritchie Torres (NY-15) issued the following statement:
“While we wholeheartedly support the American Rescue Plan’s one-year expansion of the Child Tax Credit to get relief to families struggling during the COVID-19 crisis, we must make this change permanent as we build back better from this pandemic. We cannot lift children and families out of poverty for just one year. With President Biden’s historic support for making this change permanent, we can forever alter the way our nation addresses children in poverty. Together, we can create a lasting solution to rebuild the middle class and cut child poverty nearly in half, lifting 4 million children out of poverty. Now is the time to get this over the finish line. We have Presidential leadership, strength in Congress, and the urgency of a pandemic demanding action.”
The American Rescue Plan includes one-year of an expanded and improved CTC modeled after the American Family Act. More information about the bill can be found here. According to a spokesman for Rep. DelBene, following the passage of the American Rescue Plan, lawmakers will work on legislation for the permanent passage of the American Family Act.
It's important to note here that this is separate from the stimulus check that are being discussed in the $1.9 trillion economic relief package. Those $1,400 stimulus payments have passed the House and are expected to pass the Senate.
According to the Biden administration, the hope is that the American Rescue Plan is signed into law by March 14, and then direct deposits would start the week of March 22, with checks beginning to arrive the week of March 29.