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Democrats have proposed a Child Tax Credit extension

Democrats are lacking one critical vote to pass an extension of the Child Tax Credit.

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The credit has been found to be effective at reducing poverty.

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Child Tax Credit extension

The enhanced Child Tax Credit payments where distributed last year from July through December. Budget restraints only allowed the credit revamp to be temporary. However, many want it to be made permanent eventually.  A one-year extension was included in the Build Back Better bill. However, it did not make it through the Senate. Find additional information on it here.

One of the changes made under the American Resume Plan was making the credit fully refundable. This allowed people with no earned income to still benefit from the monthly payments. This resulted in nearly a 40% decrease childhood poverty.

Some officials claim that recipients wouldn’t use the money wisely. However, research tells us otherwise. It has been found that families use the additional money for necessities. If there was irresponsible spending with this money, childhood poverty wouldn’t have seen such a dramatic decrease.

If the Child Tax Credit does return permanently, it will likely be much less money each month than this past year.

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