Child Tax Credit To Be Extended Until 2024; Lawmakers Are Weighing Extension of $300 Monthly Benefits

In the proposed $3.5 trillion huge social spending proposal, Senate Democrats consider extending Biden's Child tax Credit until 2024.

Child Tax Credit To Be Extended Until 2024

According to a Senate Democratic source familiar with the current talks, Senate Democrats consider including a three-year renewal of President Joe Biden's revised child tax credit in the $3.5 trillion social spending package, per MSN News reports.

The aide spoke on the condition of anonymity to discuss the specifics of private talks and emphasize that the situation remained fluid. The child tax credit would be extended until 2024, but the amount would be reduced to $2,000 again in a presidential election year. Families that owe little or no taxes, on the other hand, would get the entire amount of the benefit indefinitely, known as "full refundability."

The source also added that the White House, Senate Majority Leader Schumer, and House Speaker Nancy Pelosi are pushing for the Child Tax Credit extension until 2024. However, there are still lots of talks to be done since lawmakers also opposed the extension of Child Tax Credit, according to a report published in Business Insider.

Committees Drafting the Social Spending Plan Including $300 Monthly Payments

Congressional committees are now drafting the social spending plan bill. Democrats want to push it via a reconciliation procedure that requires a simple majority, bypassing what is expected to be uniform GOP opposition.

According to a source familiar with the talks, the Senate Finance Committee has been given $385 billion to prolong the child tax credit and a couple of other programs, including the earned income tax credit and the child and dependent care tax credit.

The child tax credit pays up to $300 per month for each kid under 17. Most American households now get a financial reward as a result of the Democratic stimulus package passed in March. Individuals earning $75,000 or less, as well as couples earning $150,000 or less, are eligible for the entire amount, according to a published article in Tech Newstube.

Extension of Child Tax Credit Gets Support from a Lawmaker and an Expert

Senator Sherrod Brown of Ohio, who was a driving force behind the expansion, is still working on expanding the child tax credit to as many families as possible. According to preliminary data, it has moved three million children out of poverty and reduced hunger.

Brown spokesperson said in a statement, "The CTC is one of the best tools we have to show people government is on their side and deliver meaningful results that nearly all families with children can feel and see in their everyday lives."

Additionally, Seth Hanlon, a tax expert at the liberal-leaning Center for American Progress, said that the prior version of the $2,000 tax credit did not cover all 27 million children, the majority of whom were Black and Latino. He also noted that the families that need the greatest help in raising their children and racial equality need to receive the assistance.