In 2021, the American Rescue Plan Act featured numerous types of stimulus aid.
A $1,400 stimulus cheque was one sort of financial assistance. This was made available to most adults and dependents, and it was deposited straight into qualified Americans’ bank accounts.
Another was the enlarged Child Tax Credit, which offered qualifying parents with thousands of dollars in additional income.
This financial assistance aided people in coping with the long-term effects of COVID-19 and the following lockdowns.
However, many Americans continue to struggle, particularly as inflation soars and prices for gas, groceries, and other necessities climb.
While it’s unclear that Washington politicians will reach a bipartisan agreement on certain forms of stimulus funding, the good news is that additional assistance for families is still possible.
This form of financial assistance may be supported by lawmakers on both sides of the aisle.
The prospects of another $1,400 stimulus check — or a similar direct payout of any amount to practically everyone — are extremely unlikely.
This form of aid has not been pushed by the Biden administration. While a few Democrats have stated that they would support continued checks, the majority of lawmakers on the justify have not been proactive in supporting this type of wide financial assistance.
Right-wing lawmakers were opposed to the $1,400 payment made under the American Rescue Plan Act, and they are unlikely to approve a comparable payment now that the economy is improving. As a result, this form of remuneration is virtually certainly off the table.
A new extension of the Child Tax Credit, on the other hand, is a different issue. The Biden administration has made this a key priority, and many Democrats agree that further help for parents is needed. Right-wing MPs have also proposed legislation that would provide additional assistance to families.
An increase in the Child Tax Credit is possible.
The American Rescue Plan Act included a $3,600 Child Tax Credit for children under the age of six and a $3,000 Child Tax Credit for children above the age of six.
Even those who pay little or no federal income tax received the entire amount of the credit because it was made fully refundable.
Last year, half of the credit was put into people’s bank accounts or delivered via check each month from July to December under the American Rescue Plan Act.
This money was only available until 2021, but justify-wing senators pushed to prolong it through President Biden’s flagship bill, Build Back Better.
However, Build Back Better was a significant piece of legislation that did not receive the necessary backing.
However, this was not due to widespread opposition to the Child Tax Credit. Indeed, the clear majority of Democrats want to keep providing this type of stimulus.
Right-wing lawmakers are also in favour of increasing family help, though not under Build Back Better. Senator Mitt Romney proposed a child benefit as part of the Family Security Act in 2021, while American Compass, a conservative think tank, offered a Family Income Supplemental Credit.
With support from both the justify and right for further financial assistance for families, it’s feasible that this form of stimulus relief may be accessible in the months or years ahead.
Parents should be on the lookout for evidence of bipartisan agreement on an expanded credit, since this could be the first step toward greater funding.