House to Pass American Rescue Plan, Expanding and Improving the Child Tax Credit Based on DeLauro’s Legislation
With Passage of the COVID-19 Relief Package Through House Rules Committee, One Year of CTC Expansion Based on DeLauro’s American Family Act Expected to Pass the House Tonight
DeLauro has Advocated for this Legislation Since 2003
WASHINGTON, DC – The House Rules Committee today advanced the American Rescue Plan, and with it, key provisions from House Appropriations Committee Chair Rosa DeLauro’s (CT-03) legislation, the American Family Act, to expand and improve the Child Tax Credit.
“The coronavirus pandemic did not just shine a light on child poverty, it exacerbated it, and amplified the need—and the urgency—for expanding and improving the Child Tax Credit,” said DeLauro. “This is a historic day, one that I have been working toward since 2003. For a long time, we’ve known that this change would dramatically cut child poverty, with enduring benefits for children and their families. This change is desperately needed, and this legislation is groundbreaking in the way that our nation helps children in poverty.”
The American Rescue Plan, which includes provisions based on the American Family Act, is estimated to cut child poverty by nearly 45%, cut Asian American and Pacific Islander child poverty by 37%, cut Black child poverty by 52.4%, cut Hispanic child poverty by 45.4%, cut Native American child poverty by 61.5%, and cut white child poverty by 38.6%. In addition to drastically cutting child poverty, the expansion and improvement of the Child Tax Credit provides middle class families with additional help as well.
“When we met with the Biden Harris Administration in the Oval Office to discuss the American Rescue Plan, I was taken aback by the portrait of President Franklin D. Roosevelt,” DeLauro continued. “These changes to the Child Tax Credit have the ability to lift millions out of poverty with the stroke of a pen—similar to the impact of President Roosevelt’s signing of the Social Security Act for seniors. This policy is critical as we look ahead to build the infrastructure for the future.”
Related to the Child Tax Credit, the American Rescue Plan would:
- Increase the maximum credit from $2,000 to $3,000 for children six to 17 with an additional $600 for each child under the age of six for a total of $3,600
- Make the Child Tax Credit fully refundable by removing a rule limiting the refundable portion to $1,400 and by removing the earnings requirement. The current rules limit the refundable portion of the credit to a percentage of earned income in excess of $2,500
- Make the payments periodically beginning in July, a delay intended to give the IRS time to prepare for the massive new initiative.
These changes not only put more money in families’ pockets, but they also extend the credit to children who are left behind by the current credit.
The American Rescue Plan is expected to pass the House tonight.