Families with children may get additional relief to look forward to in the future years, as legislators presented a $3.5 trillion budget plan that contained a large sum of financial aids.
Lawmakers Passed Budget Resolution
In a recently published article in CNBC News, on Tuesday, House Democrats approved a budget resolution, allowing them to begin drafting the plan's specifics. They want to approve it via reconciliation, which would allow them to pass the budget without the need for Republican votes.
The framework that legislators are starting with would spend billions of dollars in programs and services like an increased child tax credit, childcare benefits for working parents, free pre-K, and more to strengthen the social safety net for families.
House Speaker Nancy Pelosi in a press event Wednesday said that she had been always confident and never doubted the President's agenda on a budget plan that will help millions of qualified Americans and residents in the country, according to a published article in The New York Times.
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Expected Plans for Children and Families
Several tax credits for low- and middle-income families, particularly those with children, are expected to be maintained under the proposal. According to an information sheet detailing the budget resolution, it would prolong the child tax credit, earned income tax credit, child and dependent care tax credit, and paid family and medical leave.
In March, the American Rescue Plan increased the child tax credit from $2,000 to $3,000 for children 17 and under, with an extra $600 for children under the age of six. In July, half of the credit was distributed to households as monthly installments, according to a published article in NPR News.
Children and their families may also benefit from the proposal's anticipated improvements in childcare and education. Senate Democrats want to increase childcare subsidies for working families and extend universal pre-K to 3- and 4-year-olds.
Moreover, the proposal also includes tuition-free community colleges, more funding for minority-serving schools, and a rise in the maximum Pell Grant award to assist individuals in attending and paying for higher education. Child feeding initiatives would also see an increase in funding.
Lawmakers are Now Writing the Details of the Legislation
The Senate approved a similar budget proposal earlier this month, and legislators are now working on the details of the bill. That implies further details about the budget, as well as any modifications to the framework and the overall amount of money to be spent, will be forthcoming.
Democratic leaders have set a deadline of Sept. 15 for committees to draft their portions of the measure, but the party's discussion may go longer. Democrats want to approve the budget via reconciliation, which does not need Republican backing if all 50 Senate members agree.
Furthermore, the cost is now estimated to be $3.5 trillion. The investments will be compensated by a mix of additional tax revenues, healthcare savings, and long-term economic development, according to the proposal. It proposes a new carbon pollution tax and advocates for collecting funds via IRS enforcement. Families earning less than $400,000 a year, small companies, and family farms are exempt from tax hikes under the proposal, according to a published article in Forbes.
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