Democrats To Propose $3,000-per-Child Benefit Plan for Families
Democrats on Monday will introduce a bill that will provide $3,000-per-child benefit to millions of American families as part of President Joe Biden's $1.9 trillion stimulus plan.
The Washington Post obtained a copy of the 22-page bill ahead of its release, which would dramatically expand the existing child tax credit.
In the proposal, families with children aged younger than six years old will be given a $3,600-per-child yearly benefit by the Internal Revenue Service (IRS), or $300 per month.
A $3,000 per child benefit will be given to those with children aged six to 17 years old, or $250 per month, said a report from Business Insider.
However, these payments will decrease for single parents who earn more than $75,000 or couples earning more than $150,000 combined, noted Massachusetts Live.
$3,000-Per-Child Benefit to Help Combat Child Poverty
"The pandemic is driving families deeper and deeper into poverty, and it's devastating," Rep. Richard Neal, chairman of the House Ways and Means Committee, said in a statement to MassLive Sunday.
"This money is going to be the difference in a roof over someone's head or food on their table," he added.
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Neal is expected to move forward with this bill amid the party attempting to move quickly in approving Biden's relief package.
"This is how the tax code is supposed to work for those who need it most," he said.
Data from Columbia University Center on Poverty & Social Policy showed that monthly poverty rates increased from 15 percent to 16.7 percent from February and September 2020, as the global pandemic took over the U.S. The researchers estimated that there would be an addition of 2.5 million more children who will live in poverty since May.
Payments for the proposed benefit are expected to go out in July and will go on monthly from that point on. The timeline is driven by the IRS's need to prepare for the new measures that come with the benefit.
Mitt Romney Proposes Sending Higher Direct Payments
The bill comes after GOP Senator Mitt Romney put forward a proposal to send higher direct payments last week. Romney, one of the 10 Republicans who called for a compromise of $618 billion to the $1.9 trillion price tag, has called to send bigger checks per child for families.
Under his proposal, an amount of $4,200 will be given to families with children up to six years old and $3,000 to those with children aged six to 17.
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Romney proposed paying for the checks by eliminating the Temporary Assistance for Needy Families (TANF) welfare program. He also wanted cuts to tax credits that assist working families in paying for the program.
"This proposal offers a path toward greater security for America's families by consolidating the many complicated programs to create a monthly cash benefit for them, without adding to the deficit," he said.
Democrats are racing to approve Biden's stimulus plan within the first 100 days of the new administration, and House Speaker Nancy Pelosi said she wants it passed within the next two weeks.
Some elements of the president's proposal, including the tax credit, could face challenges as Democrats hold narrow control of the Senate and are still moving forward with some parts of it without the Republican support, reported Forbes.
It's not clear whether rules of reconciliation would allow Democrats to pass the child tax credit.
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