House Democrats have revealed a bill on Monday that will make the child tax credit expansion permanent. The said initiative is a major part of President Joe Biden's $1.9 trillion stimulus plan, which was approved about a month ago, Insider reported.

Aside from a one-year expansion of the child tax credit, Biden's relief plan also includes $1,400 stimulus checks, an extension of the weekly $300 unemployment benefits, and funding for vaccine distribution, testing efforts, and reopening schools.

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Democrats on Bill That Will Make Child Tax Credit Permanent

The latest push over the child tax credit was introduced by Representative Rosa DeLauro, Representative Suzan DelBene, Representative Ritchie Torres. 

DeLauro is the House Appropriations Committee chair, while DelBene is the head of the centrist New Democrat Coalition.

Newsweek noted that the president's $1.9 trillion stimulus package signed into law in March had expanded child tax credits to $3,000 for each child aged between six and 17 and $3,600 for each child under the age of six.

Parents also have the option of receiving the payment from the IRS as a monthly check of $250 or $300, depending on their kids' age. 

"We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit by increasing the benefit to families and providing payments monthly," DeLauro said in a statement.

However, the president does not think that the legislation proposed by the trio of Democrats would pass the Senate.

"He said 'I'd love to do it permanently but I'm not sure that I can get through the Senate," said Representative Teresa Leger Fernandez as she shared the president's words during his meeting with lawmakers from the Congressional Hispanic Caucus.

Although unsure if it can get through the Senate, Leger Fernandez noted that the president was interested in making the child tax credit permanent.

"[Permanence] is more costly than a five-year extension," one House Democratic aide told Insider. The aide also shared that child poverty costs the U.S. $1.1 trillion annually.

Child Tax Credit

The child tax credit is available to certain families who claim children as dependents, CNBC reported. Families must meet the qualifications.

Under the law, couples earning $150,000 or less and single parents earning $75,000 or less are entitled to receive the full amount.

According to a projection from the Tax Policy Center last month, around 90 percent of families would benefit from the program. Experts also said that its implementation would halve the country's child poverty rate.

"Though it is the largest federal investment in children that we make, it still leaves behind one-third of all children," said DelBene. DelBene also noted that the current rules make many families unqualified for the child tax credit.

The Democrats utilized a budget process called "reconciliation" to speed up the passage of the latest stimulus bill, even without any Republican support. However, the process can only be used once for every fiscal year.

The Washington Post reported that Biden is likely to reject permanently expanding the child tax credit in the "American Families Plan," but instead extend it through 2025 at a $400 billion cost. 

Meanwhile, other lawmakers are also rolling out plans for monthly payments to parents as well. Sen. Josh Hawley introduced a measure setting up a new "Parent Tax Credit" that would not replace the existing child tax credit but instead supplement it for families earning around $7,540 for the prior year.

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