After falling from its peak in December 2020, the proportion of hardship households rose again in May as the impact of the third round of federal stimulus waned. Still, nearly 30 percent of American adults still had problems paying usual household expenses from early October as the damage to the economy and livelihoods from the Covid-19 pandemic continues. Many of these hardships were avoided by the passage of three previous stimulus measures, and there is still a faint hope of a new one before the end of the year.
The Democrats have agreed on a framework for President Biden’s Build Back Better social and environmental law. The infrastructure law has been passed, lending an additional trillion dollars to combat the country’s ailing road and transportation systems. The sister bill, for social spending, has yet to be passed, although aanother major federal stimulus check is not included. Despite this, families with children could receive monthly financial aid if the legislation is passed, in the form of the Child Tax Rebate.
Build Back Better framework makes investments in families and more
The Build Back Better framework will extend the enhanced child tax credit which has been sending families monthly payments since July. While the extension is only for one year, and not until 2025 as the White House had requested, the change that would make the tax provision fully refundable would become permanent.
No member of the GOP voted for the expanded child tax credit.
None of you are willing to support paid family and sick leave.
“Party of parents”? Give me a break. https://t.co/pQWEo4nWt8
— Bernie Sanders (@BernieSanders) Nov 5, 2021
This will provide an incentive for low-income families who previously could not claim the credit unless they had earned income in excess of $2,500 before the changes for fiscal year 2021. Even then, parents would only gradually receive more of the credit as their income increased until they could claim the full credit. By making the fully refundable aspect of the Child Tax Rebate permanent, even if a new extension cannot be carried forward next year, all taxpayers with eligible children can claim $2,000 until 2025 when the credit drops to $1,000 per child under 17.
Monthly child tax credit payments will continue through 2022
The changes under the US bailout plan allowed families to claim the entire increased credit of $3,600 for each child under six and $3,000 per child between the ages of six and 17.
Next year, if the Reconciliation Act is passed, families will be able to receive 12 monthly installments for the full amount of the 2022 child tax credit they are entitled to. Research on the first payments found that they reduced hardships for families with children, Lifting 3 million children out of poverty. The acclaimed 40 percent reduction in child poverty by 2025 will not be met, as it would only be if extended for the full five years, but it was reduced.
The shortening was intended to encourage the vote of Senator Joe Manchin, a “moderate” determined to scrap the president’s agenda. His vote is yet to come, leading to the exclusion of other parts of the bill, such as caps on pharmaceutical drug prices, as well as meaningful climate provisions.
Joe Manchin, who is blocking aid to tens of millions of Americans in need, also drives a Maserati and owns a yacht.
Gosh, how did it go? @Sen_JoeManchin do that on a senate salary
— Amy Siskind 🏳️🌈 (@Amy_Siskind) Nov 4, 2021
Without it passing, there still can’t be an extended child tax discount anymore, nor any other serious support for social spending before the end of the year.