A bipartisan group of U.S. lawmakers has announced a significant deal to expand the Child Tax Credit. This credit was initially boosted during the pandemic as part of the American Rescue Plan, leading to record-low child poverty rates. However, once the temporary expansion expired, poverty rates climbed again.
The new agreement proposes to raise the maximum refundable tax credit from $1,600 to $1,800 per child for 2023, with further increases planned for 2024 and 2025. Additionally, starting in 2024, the tax credit will be adjusted for inflation. This plan, while not as extensive as the 2021 expansion, is expected to provide substantial relief to many working-class families.
Cassie Williams, a mother from Detroit, Michigan, shared her experience, noting the financial challenges families like hers face, especially after the previous expansion expired. The U.S. Census Bureau reported that the expanded Child Tax Credit in 2021 reduced child poverty significantly. Advocates believe the current deal could lift 400,000 children out of poverty, though some argue more comprehensive measures are needed to support families struggling to meet eligibility requirements.
The proposal, yet to be written into legislation, must pass both the Republican-controlled House and Democratic Senate. Lawmakers are aiming for swift action to benefit Americans during this year’s tax filing.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].