The American Rescue Plan, a $1.9 trillion relief package that passed in March, allowed for people to receive an advance on their Child Tax Credit in the form of monthly payments, beginning in July and ending in December. The payments helped decrease child poverty and Biden says he wants to make it permanent, although, the Build Back Better Act would only extend the program through the end of 2022.
During a press briefing on Thursday, Brian Deese, director of the National Economic Council, said the Child Tax Credit aspect of Build Back Better was partially why the administration wanted to make sure it was passed before the end of the year. The House passed the package in November, but it’s currently stalled in the Senate, and if it fails, the last monthly payment of the Child Tax Credit will go out on December 15.
“Our view is that the Child Tax Credit is a really basic, important support for families and we should extend it because it’s doing what we hoped it would do,” Deese said, referencing the reduction in poverty and “breathing room” the financial support affords families.
The Build Back Better Act takes the direct payments one step further than the American Rescue Plan. Instead of receiving half the credit in monthly payments and half after a person files their taxes, as is the case with the American Rescue Plan, the Build Back Better Act would allow people to receive their full credit in monthly payments.
Build Back Better would also extend the increase on the Child Tax Credit amount. The American Rescue Plan increased payments from $2,000 per eligible child to $3,600 for eligible children under the age of 6 and $3,000 for children between the ages of 6 and 17.
With the increase in the Child Tax Credit amount, parents have been receiving monthly payments of $300 for children under 6 and $250 for all other eligible children.
Although it’s not technically a stimulus check in the form that many Americans received last year, Stephanie Bonin, who created a Change.org petition for monthly payments, still sees the Child Tax Credit as a win.
She previously told Newsweek that the goal of the petition was for people to receive money they could “count on” during the turbulence of the pandemic. So, while the Child Tax Credit won’t be sent out as a “stimulus check” it achieved the goal of providing people with stable funds they could use to plan their budget.
Biden’s been pushing for Congress to extend the Child Tax Credit since summer, saying in a speech that hardworking people who pay taxes “deserve a break.” Administration officials acknowledged the goal is to make the expanded Child Tax Credit permanent, but the initial plan was to extend it for four years.
In his summer remarks, Biden called the expanded Child Tax Credit “transformative” and the “right” and “smart” thing to do.
“We are confident we’ll get Build Back Better passed,” Deese said on Thursday. “Extending the Child Tax Credit is one of the many reasons we need to do that and need to do it as soon as possible.”
