Stimulus update: If Congress takes action to enact its expanded form, a child tax credit payment could rise.
Rep. Adam Schiff (D-CA) has urged Nancy Pelosi, the House Speaker, and Steny Hoyer, the House Majority Leader, to increase the Child Tax Credit by at least $1,000 for each child a family has. According to a statement from Schiff, the tax credit will return to its original amount of $2,000 per child in December 2021.
As stated in Schiff’s letter to Pelosi and Hoyer, “While this Congress has delivered on many priorities, we are faced with the decision to continue essential programming that families desperately like the Child Tax Credit, is necessary. As members of Congress, it is our responsibility to enact ambitious legislation and codify measures that will eventually help to decrease poverty, homelessness, and food insecurity. insecurity for American children and workers at a time when millions of Americans are struggling to make ends meet and the cost of basic necessities is at record highs.
The American Rescue Plan of 2021, passed in response to the COVID-19 pandemic, increased the benefits of the Child Tax Credit. For instance, it raised the tax credit from $2,000 to $3,000 for children aged 6 to 17 and from $2,000 to $3,600 for those under the age of 6. In addition, the eligibility age was raised from 16 to 17 and the tax credit became fully refundable.
As the Republican Party retook control of the House in the 2022 midterm elections, Schiff’s request comes one month before the Democrats lose that position. The congressman is specifically requesting that any year-end legislation from Congress include an extension of the expanded Child Tax Credit.
Democrats tend to support returning the credit to the much more lenient terms awarded in 2021. Republicans continue to disagree on tax credit increases, though the party may be shifting in favour of the child benefit as they try to win over voters from the working class.