STREAMING NOW: Watch Now

Democrats unveil $3,000 child benefit as part of Biden relief package

Treasury Secretary Janet Yellen talks with CNN's Jake Tapper about the US unemployment rate and the need for Congress to approve President Biden's stimulus package.

Posted: Feb 7, 2021 10:19 AM
Updated: Feb 8, 2021 7:45 PM


House Democratic leaders unveiled legislation Monday that would give millions of families at least $3,000 per child, advancing a key provision in President Joe Biden's $1.9 trillion Covid-19 relief package.

Rep. Richard Neal, who is leading the crafting of the legislation for the stimulus package as the Ways and Means Committee chairman, introduced the enhanced Child Tax Credit bill.

'The pandemic is driving families deeper and deeper into poverty, and it's devastating. We are making the Child Tax Credit more generous, more accessible, and by paying it out monthly, this money is going to be the difference in a roof over someone's head or food on their table,' the Massachusetts Democrat said in a statement provided to CNN.

CNN obtained a copy of the 22-page bill Sunday. The Washington Post first reported on it.

The legislation would provide $3,600 per child under the age of six and $3,000 per child age six through 17 for a single year. The full benefit is available to single parents earning up to $75,000 annually and for couples earning up to $150,000. Payments would phase out after those thresholds.

Families can receive the Child Tax Credit payments on a monthly basis, which advocates say would make it easier to pay their obligations compared to getting a lump sum at tax time.

If this particular legislation is passed by Congress, the payments would begin in July for one year.

Another big change: The credit would become fully refundable for the year. Some 27 million children currently live in low-income families who receive a partial or no tax credit because they earn too little, according to the left-leaning Center on Budget and Policy Priorities.

The current Child Tax Credit provides up to $2,000 per child under the age of 17. The credit phases out for single parents with a modified adjusted gross income over $200,000, and $400,000 for married couples. Families receive a single payment.

Some 90% of families with children will receive an average credit of $2,380 in 2020, according to a non-partisan Tax Policy Center estimate.

Reps. Rosa DeLauro of Connecticut, Suzan DelBene of Washington and Ritchie Torres of New York also introduced on Monday standalone legislation that would continue the expanded benefit permanently.

DeLauro, who has been working on bolstering the child tax credit since 2003, said Congress should pass the enhancement permanently while there's a chance in a statement first provided to CNN Sunday.

'We cannot stop here. We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit. One year is not enough for the children and families battling not just the coronavirus, but poverty, too,' the Connecticut Democrat said in the statement.

Some Republicans also support increasing the Child Tax Credit. Utah Sen. Mitt Romney last week unveiled a proposal to provide a monthly cash benefit of $350 for each young child ($4,200 annually) and $250 for each school-aged child ($3,000 annually).

However, his measure would also eliminate several existing government assistance programs -- including Temporary Assistance for Needy Families -- and tax provisions, including the deduction for state and local taxes.

Romney said his plan would lift nearly 3 million children out of poverty, while not adding to the federal deficit. It would cost about $66 billion, including accompanying changes to the Earned Income Tax Credit.

Biden's proposal to give relief to low-income families

Biden's relief package, which he unveiled last month, called for augmenting the Child Tax Credit for one year to help fight against poverty.

The President's proposal also includes an expansion of the Earned Income Tax Credit to more low-income workers, along with $1,400 stimulus checks and increased unemployment, nutrition and housing aid, among other measures.

'All told, the American Rescue Plan would lift 12 million Americans out of poverty and cut child poverty in half. That's 5 million children lifted out of poverty,' Biden said last month before signing two executive orders that would augment nutrition assistance and strengthen federal worker protections.

Biden also noted that the proposal would reduce poverty among Black families by one third and among Hispanic households by almost 40%.

A one-year expansion would cost about $120 billion, according to the Committee for a Responsible Federal Budget, a non-partisan fiscal watchdog.

This story and headline have been updated with additional developments.

New York Coronavirus Cases

County data is updated nightly.

Cases: 1980337

Reported Deaths: 51418
CountyCasesDeaths
Kings2621119933
Queens2613019549
Suffolk1920063307
Nassau1759193106
Bronx1735626372
New York1307874308
Westchester1248812238
Erie811411694
Richmond700891744
Monroe603251034
Orange45755782
Rockland45439941
Onondaga35694661
Dutchess27720433
Albany23473343
Oneida21329497
Niagara17999332
Broome17239348
Saratoga14292160
Ulster12882241
Schenectady12332192
Rensselaer10567136
Putnam1011391
Chautauqua8304132
Chemung7081133
Oswego693990
Ontario681191
Steuben6231141
St. Lawrence615594
Sullivan606168
Cayuga582590
Jefferson542463
Wayne519667
Cattaraugus509880
Genesee5028121
Herkimer4896107
Clinton450132
Madison427385
Tompkins403449
Fulton402186
Livingston397058
Montgomery3861115
Columbia380999
Cortland352260
Tioga335758
Warren334956
Wyoming322651
Otsego315646
Allegany315483
Greene309474
Chenango304874
Washington282655
Orleans273483
Lewis243233
Franklin238312
Delaware213736
Seneca185756
Schoharie153815
Essex149326
Yates110126
Schuyler98313
Hamilton3012
Unassigned172100
Out of NY0216
Rome
Cloudy
45° wxIcon
Hi: 44° Lo: 36°
Feels Like: 40°
Binghamton
Cloudy
37° wxIcon
Hi: 40° Lo: 33°
Feels Like: 30°
Rome
Cloudy
45° wxIcon
Hi: 46° Lo: 37°
Feels Like: 40°
Rome
Cloudy
45° wxIcon
Hi: 42° Lo: 33°
Feels Like: 40°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Saluting Those Who Are Proud 2 Serve
Enter the Rock Your Body Giveaway from Alivana Aesthetics
Looking for work or looking to hire? Check out the WKTV Job Fair!