Child Tax Credit Set to End, Potentially Pushing Millions of Kids Into Poverty

Child advocates fired Friday was a grim day as Democrats failed to find a way to extend the child tax credit. nearly 10 million children You are at risk of falling into poverty again

Talks regarding Build Back Better stalledThe party has less than two more weeks to pass an extension to the child tax credit (CTC). It was distributed in monthly payments in 2021 to millions of families and provided $300 per child for those with the lowest income.

“The clock is ticking,” said McKenzie Wilson, spokesperson for Fighting Chance for Families, on Friday. “There are just eleven days left to extend the popular expanded Child Tax Credit in time to secure a January disbursement of its monthly payment to 35 million families. Congress must act swiftly to avoid this lapse in payments to ensure that parents have the security they need to remain in the workforce and cover the rising cost of raising children.”

According to Sen. Ron Wyden, D-Ore., needs to pass legislation to extend CTC by December 28 to avoid an interruption of payments covering approximately 60 million children in the country. If the measure isn’t passed, families will have already received their last monthly payment as of December 15.

The potential end of the child tax credit is coinciding with the White House’s march toward its so-called “return to repayment” plan, It is required that approximately 45 million Americans begin to repay their student loans within two years of the end of the moratorium.

This can add significant financial stress to families in the midst of what is. expected to be an explosion in new coronavirus cases due to the highly-transmissable Omicron variant, the decision to restart student loan payments and end the monthly CTC in a midterm election year would be the result of a “delusional” political strategy, said Rep. Alexandria Ocasio-Cortez (D-N.Y.) Friday.

“We need to act now,” the congresswoman said.

Both the CTC, and the student loan repayment pause, have been popular across the political spectrum.

A poll conducted by Fighting Chance for Families in conjunction with progressive think tank Data for Progress earlier this month showed that Americans support expanding the CTC by a 24-point margin.

Separately, Tuesday’s Data for Progress poll showed that 55% likely voters were in fact, according to a separate poll. back The student debt moratorium should be extended by 74% of Democrats and 56% of independents. It also includes a third Republican voters.

“The current and popular pause on student loan payments has provided relief to some 32 million borrowers during this ongoing pandemic,” said Marcela Mulholland, political director at Data for Progress, on Thursday. “Rolling such relief back as the Omicron and Delta variants spread across this country will jeopardize millions of Americans and is sure to have political consequences.”

After talks between the White House and the Senate over the Build Back Better Act reportedly fell apart Thursday over right-wing Sen. Joe Manchin’s (D-W.Va.) objection to the CTC, Senate Democrats began discussing other methods of ensuring the measure is passed by December 28 to ensure the IRS has time to get payments to families by January 15.

Wyden proposed An amendment to the CTC was added to a unrelated bill about Chinese imports made using slave labor. But Sen. Marco Rubio (R.Fla.) opposed the provision.

Senators are also hoping to pass a 10-year extension of the CTC — paid for with Wyden’s Billionaires’ Income Tax — with a stand-alone bill, but they would need 10 Republicans and all the Democrats to support the legislation due to the filibuster, which requires 60 votes.

Senate Minority Whip John Thune, R-S.D. Thursday’s dismissal of the idea to extend the credits that have helped millions afford rising grocery bills and child care costs, as well as mortgage and rent payments, was not a good sign. telling The Hill “That’s not something our members are interested in.”

Senators discussed contingency plans for families to continue receiving monthly payments as part of ongoing talks about passing the Build Back better Act. Sen. Bernie Sanders (I-Vt.), warned families that failing to extend credits would leave them feeling abandoned.

“Anyone who thinks that we should cut that back and tell millions and millions of working parents that they’re not going to have the money they need to raise their children with dignity, I think that’s a terrible mistake,” Sanders told The Hill Thursday. “If you ask millions of working parents about whether or not they need the help to raise their kids in these difficult times, they would say ‘yes.’”