As President Joe Biden said that he was not sure if they would continue to provide Child Tax Credit to families in need, millions of children in the U.S. suffer from child poverty, leaving their parents unsure how they will make ends meet.
Expanded Child Tax Credit
As reported by NBC News, in the American Rescue Plan Act, which was sponsored by House Democrats, the expanded child tax credit was included, which allows payments that were previously issued as part of annual tax refunds to be given as automatic monthly payments of $250 or $300 per kid.
For children aged 6 and older, the total compensation has been increased to $3,000, with a maximum payout of $3,600 for children less than 6.
The definitions of eligibility have been widened to include enabling families with children to be eligible for the entire credit even if they have low or limited incomes, among other things. They claim that these payments provided them with a lifeline during a time when job security and child care were in short supply.
As part of his former campaign, Biden called for extending and making permanent the expansions of the child tax credit, granting the child tax credit full refundability, and expanding the earned income tax credit., according to the report.
However, after the expansion, families will be struggling again to make ends meet.
Fighting child poverty
As per the report, estimates from the Center on Poverty & Social Policy at Columbia University stated that around 3.7 million children were lifted out of poverty in December, including 737,000 Black children, 1.4 million Latino children, and 1.4 million White children.
When the expanded credit program expires, it will come at a very difficult moment for families. Many people have been compelled to take time off from work because their loved ones are unwell as a result of inflation, which is driving up prices, particularly the cost of food, and the rapidly spreading Omicron strain of the coronavirus.