The federal government introduced the extended Child Tax Credit program in 2021; it provided monthly checks to low-income families from July to December. Millions of children and families improved their living standards with the help of monthly checks. However, the government announced an end to the CTC payments in 2022; the families have not recovered from the financial debacle and struggle to meet their basic needs. Npr reports that several US families were vastly dependent on the Child Tax Credit; they have been in serious trouble since the start of the year.
Millions witness extreme circumstances
IRS issued millions of checks last year to the families within the income threshold. The government aimed to provide a financial cushion to low-income households. Many families use the Child Tax Credit amount to cover their everyday bills; they cannot afford the essential commodities after their payments have ended. The economists and lawmakers believe that the situation will worsen, and millions of children will fall into poverty due to a lack of federal support. Several government authorities have tried to convince Congress to resume the payments but to no avail. The families will likely struggle in the future.
No federal schemes this year despite growing inflation
IRS issued $250 per month to families with one child between 6-17 and $300 for each below 6. The government announced $3,000-$3,600 for the families; they received the first half of the amount by 2021’s end. The beneficiaries will receive the remaining amount after filing their tax returns; IRS will provide the amount along with the tax refunds.
The reports show the worsened economic condition in the last two months. The continuous rise in inflation has aggravated the difficulties. President Biden introduced the Build Back Better bill last year to extend the federal benefits for the citizens. However, it did not gain full support within the Senate.
IRS officials face a considerable challenge to process timely payments; they face a massive backlog due to staff shortages. The federal government needs to take immediate steps to restore the economy; the price rise has been highest in the last four decades. The prices of essential commodities are beyond imagination.