Stimulus upgrade: $ 3,600 / child suggested payments; Who would be eligible?

The House Democrats have introduced legislation that would provide parents with a payment of up to $ 3,600 per child as part of the Biden administration’s $ 1.9 trillion coronavirus stimulus legislation.

The measure, officially called Child Care for Economic Recovery, was unveiled by Democrats on Monday. It would extend the existing child tax credit to allow direct payments of $ 3,600 ($ 300 per month) per child to parents or guardians of children 6 years of age and younger, and $ 3,000 ($ 250 per month) to children 6-17 years of age. The bill would fully reimburse the payments, meaning low-income earners would receive the full amount even if they were not taxed.

Currently, the child’s tax credit is $ 2,000 per child and is not paid monthly. The newly proposed payments would be made in monthly installmets in July.

The legislation would cost $ 117 billion a year, according to Yahoo News, and although payments would initially be for one year, supporters are pushing to make it permanent.

– We can’t stop here. We need to use this moment to pass the American Family Act and to permanently expand and improve the child tax credit. One year is not enough for children and families struggling not only with the coronavirus but also with poverty. , Said Rosa DeLauro, D-CT, Chair of the House Appropriations Committee.

Income eligibility thresholds would be similar to recent incentive measures. Individuals earning less than $ 75,000 and couples earning less than $ 150,000 would be eligible for full payments that would eliminate income in excess of those amounts.

The proposal is expected to be included in Biden’s full relief plan.

Similar to last week’s Utah Republican Mitt Romney.

Romney plans that parents would receive $ 350 a month for every child under the age of 6 and $ 250 for children between the ages of 6 and 17. Parents can receive a cash benefit four months before the child is due, and payments continue on a monthly basis.

The cap on monthly payments would be $ 1,250 per month, and couples with an income of at least $ 400,000 would receive less.