personal finance

Democratic Lawmakers Call for Permanent Expansion of the $3,000 Child Tax Credit

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On the eve of the first advance payment of the new enhanced child tax credit (CTC), a group of Democratic lawmakers is once again calling for the expansion to be made permanent.

The CTC was expanded as part of the American Rescue Plan (ARP), passed earlier this year. It increases the standard credit to $3,600 per year for children under 6, and to $3,000 for children 6 to 17 for 2021, with half of the payment amount paid out monthly starting Thursday, July 15.

The group, which includes Sens. Michael Bennet (Colo.), Sherrod Brown (Ohio) and Cory Booker (N.J.), and U.S. Representatives Rosa DeLauro (Conn.), Suzan DelBene (Wash.) and Ritchie Torres (N.Y.), said during a press conference Wednesday it is their goal to make the expansion permanent so parents know they can rely on the money each month.

"We have a real opportunity to not just throw money at a problem, but to...lift up all children and families," Rep. DeLauro said during the press conference.

The group of lawmakers say that making the credits permanent will go a long way to reducing child poverty in the U.S. Research has backed them up.

Since the ARP passed, many Democratic lawmakers have pushed for the expansion to be renewed past 2021, including introducing legislation to make it permanent with no expiration date. President Joe Biden proposed continuing the monthly, fully-refundable payments through 2025 in the American Families Plan.

The lawmakers are also pushing for a permanent expansion of the earned income tax credit (EITC), which was also updated in the ARP.

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