On Monday, House Democratic leaders will introduce an enhanced version of the Child Tax Credit bill, a legislation that will give millions of families a minimum of $3,000 per child.
“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,” Richard Neal, chairman of the Ways and Means Committee, said in a statement provided to CNN.
If approved, for a single year, the legislation will provide parent(s) with $3,600 per child that is under the age of six and $3,000 per child between the ages of six and 17.
Single parents earning up to $75,000 annually and couples earning up to $150,000 will receive the full benefits. After that, “payments will phase out”, report says.
Families have the option of receiving the payments in one lump sum at tax time, or on a monthly basis.
The current Child Tax Credit offers $2,000 per child under the age of 17. It is also limited to single parents with “a modified adjusted gross income over $200,000, and $400,000 for married couples.”
Unlike the current credit, the enhanced Child Tax Credit will be “fully refundable” for the year.
If the legislation is passed by the congress, funds will begin to be issued in July for one year.
“We cannot stop here. We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit. One year is not enough for the children and families battling not just the coronavirus, but poverty, too,” the Connecticut Democrat Rosa DeLauro, said in the statement.