A recently proposed piece of legislation would bring back the monthly child tax credit and give new parents a $2,000 baby bonus.
The American Family Act, legislation that would make the child tax credit, which was expanded during the COVID pandemic, permanent and expand who is eligible, was reintroduced by Democratic Congress Members Rosa DeLaura of Connecticut, Suzan DelBene of Washington, and Ritchie Torres of New York.
$300 Monthly Payout For Families With Children Under Six
According to DeLauro in a statement, it was the biggest tax relief for working-class and middle-class families in years.
These regular contributions assisted parents with managing a mortgage or rent payment, paying bills, putting food on the table, buying school supplies and clothes, paying for music lessons, buying new cleats, and other expenses.
In only one year, it helped nearly 4 million kids escape poverty. It worked, and now it’s time to get it back to functioning for families and kids.
The bill has the support of 243 members of Congress, including Terri Sewell, a representative for Alabama and a Democrat from Birmingham.
Families with children under the age of six would be given a payout of $300 per month, or $3,600 annually, under the bill’s terms.
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CTC Plan Increases Credits Depending On Child’s Age
With an additional year added over the previous CTC, which ended when a child aged 17, this sum would decrease to $250 per month, or $3,000 annually, per child ages 6 to 17.
A baby bonus is an additional provision being added to the current CTC by the CTC proposal.
According to Roll Call, the plan would increase the credit’s size from $1,000 to $2,000 for the month a baby is born.
According to the family’s income, a child born in January could receive up to $5,300 in aid the first year before it drops to $3,600 the following year.
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