As the COVID-19 pandemic hit the American population roughly two years ago, the socioeconomic situation took a turn for the worse. Many people lost their lives and jobs. As a result, poverty levels rose. This affected not only the individual but also millions of middle and lower-income families and children. For these reasons, under US President Joe Biden, the enhanced child tax credit program was introduced.
Under this program, eligible US families received extended child tax credits for each dependent they had, depending largely on age. In general, parents with children, six or under received a maximum of $300 tax credit or stimulus from the federal government per child. However, with the failure of President Joe Biden to get his Build Back Better act passed – these enhanced child tax credits or stimulus payments might be a thing of the past.
The Proposed Family Security Act
There is some good news. According to Cleveland.com, US Senator Mitt Romney is trying to reinstate monthly stimulus payments or child tax credits. If Sen Romney’s plan goes forward, it will form part of the 2021 stimulus package. It is known as the Family Security Act.
The proposed Family Security Act aims at providing parents or families with monthly payments of $350 for each child five or under and $250 for children aged between 6 and 17 years old. Furthermore, the proposed Family Security act will also provide expecting parents with stimulus aid. In this light, Senator Romney’s act aims at providing them with a tax credit or monthly payments for four months before giving birth.
Rationale Behind The Proposal
According to Senator Romney, the justification behind his Family Security act is: “American families are facing greater financial strain, worsened by the COVID-19 pandemic, and marriage and birth rates are at an all-time low, … On top of that, we have not comprehensively reformed our family support system in nearly three decades, and our changing economy has left millions of families behind”.
There will be a proposed maximum monthly payout for eligible families. This, if the action is brought into law, is suggested to be $1,250. Lastly, Senator Romney’s act is again gaining popularity after President Joe Biden’s Build Back Better bill has failed to be legislated. Senator Romney first tried to get his act or bill passed in 2021.