Child tax credit close to lapsing as December checks go out
It맥스카지노�s one of the most far-reaching of all the federal aid programs launched during the COVID-19 pandemic 맥스카지노� up to $300 per child going directly into the bank accounts of families on the 15th of every month.
But the last checks will go out Wednesday, the expanded child tax credit program expiring unless Congress revives it for 2022. That appears highly uncertain as lawmakers try to push President Joe Biden맥스카지노�s roughly $2 trillion social and environmental bill into law.
The swift launch, and potentially quick end, to the bolstered child tax credit highlights the risks of enacting sweeping social policy changes in a politically divisive environment, without consensus to make the changes stick. Biden and Democrats on Capitol Hill might not have been praised by voters for adding the new benefit, but they almost surely will be blamed if the money abruptly stops flowing next month.
맥스카지노�We need to keep them going,맥스카지노� said Rep. Suzan DelBene, D-Wash., and chair of the House's New Democrat Coalition. 맥스카지노�Families deserve that predictability and certainty.맥스카지노�
The child tax credit wasn맥스카지노�t new when Democrats, over the objections of Republicans in Congress, altered the program as part of Biden맥스카지노�s $1.9 trillion coronavirus relief bill shortly after he took office in January.
But rarely has it provided the boost to families seen with this year맥스카지노�s changes.
For more than 20 years, American taxpayers have been afforded a tax break for their children. Started as a $500 per child write-off under Bill Clinton in 1997, it changed over time and was beefed up under Donald Trump맥스카지노�s GOP tax cuts in 2017. Biden맥스카지노�s American Rescue Plan increased the credit to $3,000 a year, added 17-year-olds and boosted the amount to $3,600 for children under six years old. Most dramatically, it gave the credit to millions of families with low or no income, even if they didn't earn enough money to pay income taxes or pay enough tax to qualify for the refund.
Studies suggest the child tax credit expansions are expected to cut child poverty by 40% 맥스카지노� with 9 of 10 American children benefiting. All told, some 4.1 million children are on track to be lifted above the poverty line, according to analysis from the Center for Budget and Policy Priorities.
After the first checks started arriving in July, about used the money during the first few months to pay down outstanding debt, along with paying for school supplies and child care, according to preliminary reports from the U.S. Census Bureau.
Families in New Mexico, which has one of the country's highest child poverty rates, spent nearly 46% of their child tax credit money on food, a study by Washington University in St. Louis맥스카지노� Social Policy Institute found.
맥스카지노�It says a lot about what families are worried about,맥스카지노� said Sharon Kaye, communications director for New Mexico Voices for Children. 맥스카지노�This is hugely important to a lot of families.맥스카지노�
Republicans are fully opposed to Biden맥스카지노�s larger policy bill, which would extend the tax credit, arguing the overall health, education and climate change package is too big and costly at a time of rising inflation.
On Tuesday, Sen. John Thune, the No. 2 Republican, said his side was fine letting the policy lapse as the coronavirus crisis eases and the temporary aid goes away.
맥스카지노�The thing I don맥스카지노�t think you want is a huge spike in spending," Thune told reporters. 맥스카지노�And that would probably be the most obvious example of an inflationary type policy.맥스카지노�
Faced with Republican opposition, Biden is trying to pass the roughly $2 trillion package with Democrats alone, which the House has already done. But the path in the evenly split 50-50 Senate is more difficult, with no room for dissent.
Biden has been in talks with one key holdout, Sen. Joe Manchin, who appears to be the final obstacle for Democrats trying to pass the big bill by Christmas.
Asked specifically about the expiring tax credit this week, Manchin did not respond to repeated questions about the potential loss.
One Democrat who has had 맥스카지노�many, many, many conversations" with Manchin is Sen. Michael Bennet of Colorado, who said the West Virginian "is not at this moment a fan of the Child Tax Credit.맥스카지노�
Bennet said he hopes Manchin will come to see that the extension would help the country because it would enable more parents to afford child care and work. 맥스카지노�My hope is that with the one-year extension of the enhanced credit he will become a fan and we맥스카지노�ll see,맥스카지노� he said.
When it became law this year, the expansion of the child tax credit was hailed as a potential philosophical shift in the way that government assistance programs work by emphasizing a direct, no-strings cash support.
Instead, the program delivers discretionary cash directly into parents맥스카지노� bank accounts, leaving the parents to decide how best to use it. Recipients spend it on food, rent, school supplies or even recreational activities. Proponents described it as an element of trust that had been lacking in much of the American social safety net 맥스카지노� relying on parents to make the right decisions on their family맥스카지노�s needs.
Robert Greenstein, a visiting fellow at the Brookings Institution, compared the child tax credit to America맥스카지노�s signature safety net programs 맥스카지노� Social Security, Medicare and Medicaid 맥스카지노� which have been adjusted and changed over the years to become mainstays in American life. He said there are few policies that are more important.
Greenstein said the benefit flows not just to the families receiving the cash, but has the potential to bring long-term economic benefits. "We맥스카지노�ll end up having healthier, better-educated generations of children who can be more productive workers in the U.S. economy of future decades," he said.
맥스카지노�People are often skeptical 맥스카지노� the government doesn맥스카지노�t do things right,맥스카지노� he said. 맥스카지노�This is an example of something that they really got right.맥스카지노�
With the last checks now slated for Wednesday, Democrats are rushing to ensure that Jan. 15 checks will still land in families' bank accounts. The Treasury Department has warned lawmakers that Dec. 28 is the deadline to pass the bill and ensure no disruption, though lawmakers have suggested payments could be made retroactively if Biden's package stalls.
Emma Mehrabi, director of poverty policy at the Children맥스카지노�s Defense Fund, called the potential interruption of payments 맥스카지노�a real slap in the face for families in need.맥스카지노�
She said, "There is no other tool in our toolkit that has significantly reduced child poverty for decades.맥스카지노�
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Associated Press writer Josh Boak contributed to this report.