President wants to reinstate $300 monthly payments to families with children, but there will probably be opposition to the idea.
According to President Joe Biden’s budget proposal for 2024, $300 monthly payments to families with children—which are widely acknowledged to have assisted in bringing people out of poverty—would be reinstated.
Biden suggests bringing back the Child Tax Credit, which was initially approved as part of the American Rescue Plan and was credited by the White House with halving child poverty to its lowest point ever.
According to the White House, President Biden has long believed that the economy should grow from the bottom up and middle out, rather than from the top down. Despite challenges, the economic strategy has led to historic progress for the American people in the last two years.
The maximum annual credit available to eligible families paid per child under the age of six would rise from $2,000to$3,600. The credit for children aged 6 and up will increase to $3,000.
Biden’s attempt to make credit permanent in the Build Back Better legislation faced opposition from Senate Republicans and Joe Manchin. The extension of the credit lasted until December 20, 2021.
Now, Biden’s fiscal 2024 plan proposes bringing it back and making it permanent.
Supporters argued to maintain the credit to assist families in need with monthly expenses like rent, utilities, and childcare.
They also point out that the credit is beneficial to local economies. Families who receive the child tax credit typically spend it locally to help meet their needs.
During the Build Back Better debate, the Center on Budget and Policy Priorities stated that When families struggle to meet their monthly expenses, they frequently resort to debt to make ends meet; a monthly benefit alleviates this strain.
In a study by Columbia University’s Center on Poverty and Social Policy, the credit kept income in households for up to 3.4 million children above the poverty line.
When the credit expired, it impacted more than 65 million children across the country.
According to the Center on Budget and Policy Priorities, nearly 9.9 million children fell back into poverty. With 1.69 million and 1.08 million children affected, respectively, California and Texas led the way.
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