Democrats to Unveil $3,000 Child Tax Credit Bill

Mandatory Credit: Photo by Evan Vucci/AP/Shutterstock (11745374b)In this, photo, President Joe Biden during his meeting with Democratic lawmakers to discuss a coronavirus relief package, in the Oval Office of the White House in Washington.
Evan Vucci/AP/Shutterstock / Evan Vucci/AP/Shutterstock

House Democratic leaders will unveil an enhanced child tax credit bill today that could give families $3,000 per child.

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The bill, to be presented by Ways and Means Committee chair Richard Neal, would advance a provision of President Biden’s $1.9 trillion American Rescue plan. 

According to the bill, the provision offers $3,600 per child under the age of six and $3,000 per child age six through 17 for a single year. The full benefit is available to single parents earning up to $75,000 annually and couples earning up to $150,000, and payments would phase out after those thresholds, according to the plan. The plan would start in July, and families can receive the child tax credit payments on a monthly basis, which advocates say will make it easier to pay their obligations compared to getting a lump sum, according to CNN. 

Under current law, the child tax credit provides a credit of up to $2,000 per child under age 17. If the credit exceeds taxes owed, families may receive up to $1,400 per child as a refund. Other dependents — including children ages 17-18 and full-time college students ages 19-24 — can receive a nonrefundable credit of up to $500 each, according to the Tax Policy Center.

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Under Biden’s stimulus plan, this provision, in addition to raising the amount, would make the CTC fully refundable by removing a rule limiting the refundable portion to $1,400 and by removing the earnings requirement, according to the plan.

Last Thursday, Utah Senator Mitt Romney introduced the Family Security Act, which would provide families with a monthly cash benefit amounting to $350 a month for each young child and $250 a month for each school-aged child, according to the Act.

“The Family Security Act creates a new national commitment to American families by modernizing and streamlining antiquated federal policies into a monthly cash benefit,” the act reads. “Expecting parents will receive the benefit mid-pregnancy, helping them tackle the expenses that start on day one. If enacted, low-income families would no longer have to choose between a bigger paycheck or eligibility for support. This plan would immediately lift nearly 3 million children out of poverty, while providing a bridge to the middle class — without adding a dime to the federal deficit.”

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About the Author

Yaël Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

Democrats to Unveil $3,000 Child Tax Credit Bill
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