House Democrats have proposed permanently and significantly expanding the child tax credit to provide thousands more to families in the form of monthly payments from the IRS, similar to the way coronavirus stimulus checks were distributed.
Under the “American Family Act,” tax credits would be refundable and families could expect to receive $300 checks for children under six and $250 checks for children between the ages of six and seventeen, Fox 5 NY reported.
That would translate into a yearly total of $3,600 for children under six and $3,000 for children seven through sixteen.
Federal aid for families currently allows tax credit up to $2,000 for children sixteen and under, in the form of a dollar-for-dollar tax reduction.
The fiscal watchdog Committee for a Responsible Federal Budget determined the yearly price tag to be $120 billion.
Reps. Suzanne Delbene, D-Wash., and Rosa DeLauro, D-Conn. are expected to introduce the bill.
The bill was proposed in the last Congress, and gained the support of 187 of 232 House Democrats. President Joe Biden has supported expanding federal aid families get as part of his coronavirus relief package, but the measure would be for one year.
“Reps. DelBene and DeLauro are planning to reintroduce the American Family Act soon. We are currently working through technical changes to the bill, including discussions with the Biden administration on how this would be implemented to get benefits to families quickly and efficiently,” said Nick Martin, a spokesman for Representative DelBene. “The president’s support for this policy is a game-changer. The one-year expansion is important pandemic relief policy but permanently expanding the benefit could give millions of children the opportunity to succeed.”