Dems to introduce $3,000 per child benefit as part of Biden relief bill

The proposed bill would make child tax credits more generous and accessible as part of Biden's plan

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Democrats have proposed a more generous relief package that could help families.

The addition to President Joe Biden‘s $1.9 trillion COVID-19 relief package could provide up to $3,000 per child. Democrats will present the legislation on Monday.

“The pandemic is driving families deeper and deeper into poverty, and it’s devastating,” said Rep. Richard Neal who is Chairman of the Ways and Means Committee who will help create the legislation for the stimulus package in a statement obtained by The Washington Post.

President Joe Biden
U.S. President Joe Biden speaks as Vice President Kamala Harris looks on during an event in the State Dining Room of the White House January 21, 2021 in Washington, DC. President Biden delivered remarks on his administration’s COVID-19 response, and signed executive orders and other presidential actions. (Photo by Alex Wong/Getty Images)

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“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.”

According to the 22-page bill, over the course of a year, the Internal Revenue Service will provide $3,600 per child to families with children who are under 6 and $3,000 to those with children 6-17 years old. The benefit will diminish to those who make than $75,000 per year or couples who make $150,000 per year.

Biden’s new package could cost up to $120 billion annually. Researches at Columbia University say the plan could cut child poverty to about 54 % which equals to about 5 million children. It would also lift more than 1 million Black children out of poverty.

“Of all the policy issues being discussed this Congress, of all the things we are working on, the biggest impact we can make for economic justice in our country — and enact measurable transformational change — lies within this policy that would slash child poverty,” said Sen. Cory Booker (D-N.J.), who has worked on similar efforts, in an interview per The Washington Post.

President-Elect Biden Delivers Remarks On COVID-19 Vaccination Plan
Biden speaks during day two of laying out his plan on combating the coronavirus at the Queen theater January 15, 2021 in Wilmington, Delaware. (Photo by Alex Wong/Getty Images)

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Some experts are worried that the payment could cause administrative complications for families whose incomes may fluctuate and receive the funds in error. One expert referred to a similar situation that occurred in Australia causing the government to go after those who were overpaid.

“The basic point is that you want to do everything possible to avoid creating this type of hardship for families. Safe harbors should be very robust,” said Chye-Ching Huang, executive director of the New York University Tax Law Center, on Twitter.

But as of now, the bill is still on the table. The benefits would be distributed monthly, not in a lump sum and could be dispersed by July.

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