Senior Democratic lawmakers are moving to fulfill President Biden’s desire to expand the child tax credit by drafting legislation that would direct the Internal Revenue Service to send recurring monthly payments to tens of millions of American families, according to officials who spoke on the condition of anonymity to share knowledge of the internal discussion, according to the Washington Post.
Under one draft of the plan being discussed, the IRS would be tasked with depositing checks worth $300 every month per child younger than 6, as well as $250 every month per child aged 6 to 17. That would amount to $3,600 over the course of the year for young children, as well as $3,000 a year for older children, the officials said.
Marco Rubio and Mike Lee among the GOP lawmakers who have pushed for dramatically increasing the child tax credit.
All but one Senate Democrat endorsed legislation to expand the child tax credit in the previous Congress.
Biden earlier this month announced his intention to push for an expansion of the child tax credit as part of his $1.9 trillion economic relief package, and congressional Democratic staff have made significant headway in drafting the legislation.
Under current law, the child tax credit diminishes in value for Americans who do not earn enough money to use the credit to offset their tax obligations to the IRS. That means that millions of the lowest earners do not make enough to receive the full benefit.
“This credit is an extremely effective tool in combating child poverty, and Democrats are working to make the expanded version fully refundable and be provided to eligible individuals on a monthly basis,” said Neal, the chair of the House tax writing committee, in a statement.
The fate of the expanded child tax credit will be wrapped up in broader negotiations in Congress over the relief package.