President Joe Biden’s funding wish list is out and it has some good news for parents. Biden unveiled his budget proposal for the fiscal year 2024, which outlines his investment priorities in every federal agency for the upcoming year. It aims to cut the deficit by nearly $3 trillion over ten years. It includes a revival of his previous tax proposals, like a minimum billionaires tax and higher corporate tax as well as the restoration of the expanded Child Tax Credit.
Biden’s American Rescue Plan Gave $3,000 per child to formalities with children over six, and $3,600 per child to families with children under six. The ARP also paid the tax credit in monthly checks rather than as part of an annual tax refund. However, the expansion of the credit expired in December 2021 due to Republican opposition and pushback from the conservative Democrat Sen. Joe Manchin. Now the president wants to restore the program fully.
The Child Tax Credit Proved To Be Formidable In Its Goal Of Reducing Poverty
Feeding 2 million children and keeping 3 million total children out of poverty in just the first month of the child tax credit existence. According to the US Census Bureau, child poverty fell to a record low of 5.2% in 2021, declining from the 2020s 9.7% rate because of those monthly checks set out to parents.
In total, according to the US Census Bureau, the child tax credit expansion lifted 2.9 million children out of poverty, with 1 million children under six. However, after efforts to expand or prolong the credit fell short, child poverty skyrocketed in 2022. Now the Biden administration wants to turn that around.