Child Tax Credit: Has California’s AB 2589 Bill Proposal Passed?

Americas Summit, Los Angeles, United States - 09 Jun 2022
Richard Vogel / AP /

California Governor Gavin Newsom hasn’t been hesitant to open the state coffers to provide for his constituents, especially when the federal government is coming up short.

With the federal enhanced child tax credit (CTC) reverting to its original, pre-pandemic payment amount of $2,000 per eligible child, the latest state-initiated benefit program that Newsom could authorize would target the state’s most vulnerable and economically-disadvantaged families.

Los Angeles Assemblymember Miguel Santiago is proposing to use some of California’s $97 billion surplus to help support the state’s low-income families. Per Marca, one-time payments would go to support the state’s poorest — those making under $30,000 a year. Santiago has stated that help is needed to keep 1.7 million Californian children out of poverty.  

The Santiago-proposed Assembly Bill/AB 2589 recommends expanding the current Young Child Tax Credit to administer a payment of $2,000 per child. The bill also proposes extending the California Earned Income Tax Credit (EITC) to raise the minimum amount from $1 to $255.

According to LegiScan, AB 2589 passed through the California State Assembly on May 27 and now rests with the Senate Governance and Finance Committee. Although it is not on the agenda for discussion at the next committee meeting on June 15, it stands a good chance of progressing given the current political climate.

Last year, when Gov. Newsom was pushing for additional stimulus checks for residents and direct payments to non-resident immigrant families, he spoke of the financial and emotional stresses that people were under — and of his government’s duty to provide resources to alleviate those pressures, according to The National Interest.

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“It’s the right thing to do,” Newsom said. “When the federal government was not able to provide those supports, the state of California will step in to do what we can.”

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