Stimulus Update: Monthly Cash Payments May Return for Children and Families -With a Few Big Changes
- lmorga35
- Feb 22, 2022
- 2 min read
Angelica Leicht
The end of the monthly Child Tax Credit had a big impact on families, but a new proposal could reduce some of the financial burdens that millions of parents are facing.
Key points
Senator Mitt Romney is proposing a program with monthly payments that would be issued to families across the nation.
This program would increase the maximum monthly payment to $350 per child for families who qualify.
But while the monthly payments would ease some of the financial burdens that millions of households are now facing, the program would come with a lot of new changes.
There is no question that the expanded Child Tax Credit benefits had a positive impact on millions of low- to moderate-income households in 2021. The $250 to $300-per-child payments that were issued to bank accounts and mailboxes from July to December of last year made a big difference for cash-strapped households, many of which were struggling to make ends meet due to the pandemic.
But those monthly payments -- as well as the other benefits of the enhanced tax credit -- came to an end for good late last year, despite numerous calls to extend the program for another year. While numerous Democratic lawmakers pushed hard to extend the program for another year, there were lawmakers opposed to the idea on both sides of the aisle. Without an agreement on an extension, Senate lawmakers simply opted to let the program, and the monthly payments, expire instead.
The loss of these monthly Child Tax Credit payments has resulted in millions of American families facing renewed financial hardships with no end in sight. And, while the program ended just a couple of months ago, new data shows just how badly families are struggling without the extra cash boost. This has led one prominent conservative lawmaker to propose a return of monthly payments for American families, but the program would come with a few big changes. Here's what you should know about the new proposal.
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