After Congress failed to pass an extension of the expanded credit, millions of families will cease receiving monthly Child Tax payments this weekend for the first time in months.
The Enhanced Credit Program Was Not Prolonged by Congress.
More than 30 million families who have been receiving monthly payments since July will not receive another round on Saturday as lawmakers attempt to reignite talks to continue the expansion. In early 2021, Democrats temporarily increased the child tax credit as part of a massive coronavirus credit amount and permitted people who qualified to pay half of the credit amount in monthly installments.
The Democratic Leadership Proposed To Get Extension on Child Tax Credit
Democrats eliminated job conditions for the credit increased the maximum credit amount and permitted people who qualified to pay half of the credit amount in monthly installments. Many Democrats and advocates have argued that enhanced credit should be made permanent, citing it as the key contributor to eliminating child poverty by allowing low-income families to get the full amount, as well as a way to help middle-income as a way to help middle-income families.
Returning to the past version of the credit, which had employment requirements and a credit that was not completely refundable, would harm the most vulnerable, according to advocates and experts. It is about reducing the deep poverty rate, and those are the people who, because they have no or very limited incomes, didn’t benefit much from the child tax credit before it became fully refundable. says researcher Stephen Nuez.
Democratic leaders hoped to pass the extension as part of the Build Back Better Act, a wider social and climate investment.