President Joe Biden suggested in his 2024 budget proposal to increase the child tax credit, restoring it to the amount recipients received in 2021.
The proposal by Biden would expand the credit from $2,000 per child to $3,000 per child for children 6 years old and older and to $3,600 for children under 6. These were the amounts in 2021 due to the American Rescue Plan, passed by Biden in March 2021, according to a fact sheet from the White House released Thursday.
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"The Budget would also permanently reform the credit to make it fully refundable," the fact sheet read. "The President also calls on the Congress to make the Earned Income Tax Credit expansion for childless workers permanent, which would help pull low-paid workers out of poverty."
Rep. Rosa DeLauro (D-CT), who has advocated returning the child tax credit to its full amount, expressed her gratitude to Biden for proposing to restore the credit.
“To ensure that families can make ends meet and deal with the rising cost of living, President Biden’s budget proposes to extend the expanded Child Tax Credit," according to a statement from DeLauro. "I have called for this since we improved the program in the American Rescue Plan and am grateful to have the support of President Biden in this effort to lower costs for working families and provide needed financial stability to the working and middle class."
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Biden's proposal to restore the child tax credit comes as the United States battles inflation. As of January 2023, a total of 60% of adults were living paycheck to paycheck, according to a report by LendingClub.
On Feb. 28, the House of Representatives voted 272-148 to pass the Reduce Exacerbated Inflation Negatively Impacting the Nation, or REIN IN, Inflation Act. The law would mandate that the Biden administration publish the projected inflationary fallout of executive actions before enacting them.