During a recent speech in Nevada, President Joe Biden expressed his desire to make the policy of child tax credits permanent, highlighting that accessible and affordable child care can contribute to economic growth in the United States.
In response to the economic challenges posed by the COVID-19 pandemic, Biden’s American Rescue Plan, passed in 2021, temporarily increased the child tax credit to assist low-income families. While this initiative provided crucial support during the crisis, the program was not extended beyond its initial period.
Biden emphasized the positive impact of expanding the child tax credit, stating that it helped decrease child poverty by providing monthly $300 checks per child to families. He aims to reinstate this support permanently, citing significant reductions in child poverty among Black, Latino, Asian, and tribal communities.
The temporary relief measures introduced in 2021 led to a notable decline in child poverty levels, as acknowledged by experts. However, the subsequent year saw a drastic increase in child poverty rates according to data from the U.S. Census Bureau.
Despite the federal government’s inaction on extending the tax credit, some states have taken the initiative to implement their versions of similar benefits for residents.
In a bid to establish ongoing support for children, the Biden administration has proposed enhancing the child tax credit amount to $3,000 per child aged 6 and older and $3,600 per child under 6. This move is expected to lift millions of children out of poverty and reduce taxes for millions of low- and middle-income families.
