A $6.8 trillion federal budget plan for 2024, released by President Joe Biden on Thursday, calls for a number of new policy initiatives as well as more taxes on corporations and the rich.
There is some good news for parents on President Joe Biden’s financing wish list, which has been released. The budget proposal for the fiscal year 2024 that President Biden published on Thursday outlines his goals for investments across all federal agencies for the coming year.
Compensation For Parents
It contains a resurgence of his prior tax plans, such as a minimum billionaires tax and greater corporation tax — as well as the restoration of the extended Child Tax Credit — and intends to reduce the budget by nearly $3 trillion over ten years.
Families with children over the age of six received $3,000 from Biden’s American Rescue Plan, and families with children under the age of six received $3,600. In addition, the ARP distributed the tax credit in the form of monthly payments as opposed to a yearly tax refund.
The extension of that credit, however, was put on hold by Republicans and conservative Democrat Sen. Joe Manchin, leading to its expiration in December 2021. The president now wants to fully reinstate the program.
Read more: Child Tax Credit 2023: How much money you can receive, how to apply?
Child Tax Credit
In just the first month of the credit’s existence, two million children were fed and kept out of poverty, demonstrating how effective the child tax credit has been in decreasing poverty.
Because of those regular payments made to parents, the US Census Bureau reports that child poverty decreased to a record-low 5.2% in 2021 from a rate of 9.7% in 2020.
One million of the 2.9 million children who were lifted out of poverty by the child tax credit extension were under the age of six, according to the US Census Bureau. Maggie Lopez, a Texas single mother, previously said that the payments gave her and her infant some breathing room.
But, months of discussion will be based on the revelation of Biden’s fiscal priorities. Congress and the White House, regardless of which party controls the executive or legislative branch, typically agree to keep spending at current levels until, ultimately, an agreement on future funding is not reached. Federal budgets are rarely approved at the start of each new fiscal year, which is October 1.
Read more: Child Tax Credit Update: Everything you need to know about this year’s changes!
