Proposed legislation from several Democratic lawmakers would give families with children a payment of $393 every month for every child they have if passed.
This legislation, titled the End Child Poverty Act, would replace the child tax credit and the child provisions in the earned income tax credit with monthly payments of $393 per child.
If passed, the payments, which would be distributed by the Social Security Administration, would be available to any family regardless of their level of income, and children would be automatically enrolled into the program at birth, according to a press release from Rep. Ilhan Omar (D-MN), who reintroduced the legislation earlier this month with fellow Democratic Reps. Rashida Tlaib (MI) and Jesus Garcia (IL).
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“Poverty is a policy choice," Tlaib said. "Currently, one in every five children in Michigan lives below the poverty line. The End Child Poverty Act will create a universal child assistance program and ensure that every child has the resources they need to reach their full potential."
This legislation comes in the wake of the expanded child tax credit coming to an end. It was expanded in response to the COVID-19 pandemic. Under the expansion, the credit gave taxpayers who filed their taxes for the 2020 and 2021 tax years $3,600 for children 5 and under. It gave $3,000 for children ages 6 to 17.
The expansion to the child tax credit was made possible by the American Rescue Plan, which was signed by President Joe Biden in 2021. For this tax year, however, the credit has reverted back to its original value, giving a maximum tax credit of $2,000 per child under the age of 17.
“In the midst of a devastating pandemic, President Biden and Democrats in Congress took dramatic action to help families in my district stay afloat — expanding lifechanging benefits like Medicaid and SNAP, and expanding the child tax credit to finally benefit the most vulnerable among us," Omar said.
"This action alone cut child poverty nearly in half,” Omar said. “It is a tragedy that we let the child tax credit expansion expire."
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To be eligible for the proposed payments, a tax filer must have a child who is under 17 and claim them as a dependent on their tax return. The child the tax filer is claiming in order to receive this credit must also have lived with the filer for over half of the year, according to the IRS.
Other qualifications for this credit include being a U.S. citizen, national, or resident alien. Lastly, the dependent and his or her spouse must not have used a joint return when filing taxes.