A new stimulus plan includes $300 per month for each child and $2,000 for a newborn

 

A new stimulus plan includes $300 per month for each child and $2,000 for a newborn

Some 250 US lawmakers are trying to return child tax credit payments of $300 per month to US wallets — this time with a $2,000 child bonus.

It's a Democratic proposal with enough Republican support to seem like little more than a wish list and would make permanent the Expanded Child Tax Credit signed into law under the American Rescue Plan. The legislation, one of President Joe Biden's signature programs in office, boosted the 2021 tax credit, with the most significant increases going to low-income families with children.

What does the new stimulus plan include?

Expand the maximum child tax credit to $250 per month.

Continued Child Tax Credit of $300 per month for children six years of age or younger

Introducing the "Baby Bonus," an additional $2,000 in the month a newborn is born.

Who is leading the push for a new stimulus?

Rep. Rosa DeLauro, D-Connecticut, says expanding the tax credit for families could be a "breakthrough." Big change as with the New Deal and Social Security   Social & nbsp; Security. "

Rep. Rosa DeLauro, D-Conn., says expanding the tax credit for families could be "as big a change as it is with the New Deal and Social Security."

DeLauro introduced the legislation in June, saying the expanded monthly payments have already helped parents pay bills, keep healthy, nutritious food on the table, afford clothes and school supplies, pay for a music lesson or a new pair of cleats, manage a mortgage or pay rent."

Rep. Susan Delbine, R-W.H., another sponsor of the legislation, called on her fellow lawmakers to "build" on the American Rescue Plan "by permanently bringing back this monthly benefit to ensure every child has a fair chance at success."

In 2021, the child tax credit reached more than 61 million children and lifted nearly 4 million out of poverty, said Rep. Richie Torres, D-NY, a third lead sponsor. "No government program has affected so many Americans in such a short time," he said.

Prominent Democrats are among the bill's 210 sponsors, from House Minority Leader Hakeem Jeffries, D-N.Y., to Rep. Alexandria Ocasio-Cortez, D-N.Y.

A companion bill in the Senate, led by Sen. Sherrod Brown, D-Ohio, has 40 participants.

Will there be another stimulus payment?

It's a challenge to get anything through a divided government, with Republicans holding the House of Representatives by a narrow margin and Democrats controlling the Senate by a narrow margin. A clash of political parties brought the country within hours of defaulting on its debt just over a month ago. Passing another tax policy will take work and effort.

Tough odds, though, it could pass if it becomes a bargaining chip in spending negotiations that can give both sides what they want — a business tax cut for Republicans and a child tax credit for Democrats. Republican members of the bipartisan Problem-Solving Caucus could be the lead negotiators on such a deal, and some conservative senators are also considering the plan.

Here's what MP is without. "I think Republicans want to see this as part of a compromise for the Democrats," Bacon told Punchbowl News last month. "We know this is like one of their biggest problems. This could be a bargaining chip we can use."

According to Punchbowl News, Rep. Brian Fitzpatrick, R-Penn., said he would use his House Ways and Means Committee seat to push for this reform.

"This case is not dead," he said, according to the outlet. "It's going to be a live, open issue for this whole cycle because you have people like me on the committee who support it."

But not everyone agrees. Republican NC Sen. Thom Tellis told Punchbowl that it was one thing to support a child tax credit during the pandemic, but "those times are over."