American families set to receive pandemic relief aid may soon be eligible to get it longer than expected.
In July, qualifying parents will start receiving a monthly payment of up to $300 per child authorized by the expansion of a child tax credit passed in March’s $1.9 trillion stimulus package.
Now, some lawmakers are pushing to make these $300 monthly checks permanent to help struggling families.
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Currently, the child tax credit is slated to last for one year after it begins this summer.
The program allots a $3,600 annual tax credit (or $300 a month) for each child under the age of 5, and $3,000 (or $250 a month) for each child ages 6-17. It is available to couples who jointly earn less than $150,000 (or, individuals who earn less than $75,000).
Some Democrats have called for a permanent expansion of these tax credits.
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In a bill he introduced to make these payments last forever, Massachusetts Rep. Richard Neal proposed making the credit a permanent fixture, reports Yahoo! Money.
“For our economy to fully recover from this pandemic, we must finally acknowledge that workers have families, and caregiving responsibilities are real,” said Neal, who is chairman of the tax-writing House Ways and Means Committee.
Despite some support among liberal lawmakers, the permanent expansion is unlikely to go through.
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However, the president is eyeing expanding the current child tax credit for at least several more years.
In his address to Congress on Wednesday, Joe Biden proposed an “American Families Plan” worth $1.8 trillion that would extend the credit through 2025.
The proposed plan is lofty — and likely to face an uphill battle.
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The price tag of Biden’s plan has been met with resistance by Republican lawmakers and business leaders alike. Among the ways that this bill will be funded is an increase on capital gains taxes paid by millionaires to the new rate of 39.5%.
Additionally, Democrats would need to get all their senators on board — likely a challenge considering the lack of unity among Dems over key stipulations in the March COVID-19 aid bill.
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