The enhanced child tax credit will begin sending out its third monthly payment later this week, distributing millions of dollars to eligible families based on the number of dependents in every household as the federal government supports Americans amid the COVID-19 pandemic.
The recurring payments come after many other relief packages have ended, including stimulus checks and the eviction moratorium. There are roughly 60 million children in the United States whose parents will receive direct deposit payments on Sept. 15.
Child Tax Credit's Next Payment
Families can expect to receive their money through the mail anywhere from a few days to a week after the sending out. Parents of eligible children can receive $300 per child every month for kids younger than six years. Those who have children six years and older can receive $250 per dependent on Wednesday.
The payments made on Sept.15 mark the halfway point of the child tax credit payments scheduled to end in December. There are only three recurring relief payments under the plan that United States President Joe Biden signed into law, called the American Rescue Plan, CBS News reported.
However, some Democratic lawmakers are discussing the child tax credit extension to let it run through 2025, but it is far from being a guaranteed move. But many anti-poverty advocates have applauded the CTC for supporting families through the coronavirus pandemic to be able to pay for daily necessities and other costs.
On top of the CTC extension, lawmakers also discussed the extension of the American Rescue Plan's Earned Income Tax Credit and the child and dependent care tax credit. The programs distributed much-needed financial support to Americans that many believe prevented economic contraction.
The proposed bill would also expand tax credit programs that are useful in encouraging investment in affordable housing. The United States has experienced a surging price in the housing market in recent years, forcing more and more people away. The programs would support the construction of more affordable housing units at a much greater frequency to force a decrease in the market price, AS English reported.
Lack of Support for the CTC
Despite the massive funds that the child tax credit sent out to American families, polls showed that child benefits have dropped in popularity. A recent YouGov/American Compass survey discovered that only 28% of voters expressed their preference for the expanded child tax credit to be made permanent.
Some believe that this situation is caused by the slow distribution of recurring payments and other issues. It is also seen as a means that disconnects lawmakers from working-class parents regarding family policies.
However, many experts believe the largest contributor to the lack of support is the effect of the child tax credit on the importance of work. The Institute for Family Studies released a report that showed many households thought of the child tax credit as a way of using work as a means to get into the system. The study focused on white parents in southeastern Ohio, Black parents around Atlanta, and Hispanic parents in the San Antonio area, the New York Times reported.