Biden to propose extending $300 monthly checks for parents through 2025, rejecting pressure from Democrats to make it permanent

April 28, 2021

Biden to propose extending $300 monthly checks for parents through 2025, rejecting pressure from Democrats to make it permanent

Biden will propose extending the strengthened $3,600-per-child child tax credit only to 2025.
After that year, the increased benefit amounts would fall to $1,000 if Congress doesn't act.
Republicans are unlikely to support the measure, given its price tag is likely above $1 trillion.
See more stories on Insider's business page.

President Joe Biden is set to propose a $1.8 trillion new economic spending program on Wednesday evening - and a core element of the initiative will be a revamped child tax credit aimed at assisting families.

The measure was boosted under the recent stimulus law to $3,600 per child age 6 and under, and $3,000 for every kid between 6 and 17. Democrats in Congress pressed administration officials to make those changes permanent in recent weeks, arguing it would cut child poverty in half.

They ramped up pressure ahead of Biden's evening speech to Congress.

"Kids don't grow up in five years. Parents need predictability to plan for their future over the long term," Rep. Suzan DelBene of Washington, an architect of the measure, told reporters on a Tuesday press call. "I asked the president in March if he supports permanently expanding the credit, and he said yes."

The new plan from Biden would only extend the credit at its beefed-up benefit levels to 2025. After that, it would drop sharply to $1,000, the previous amount in 2017 when President Trump's tax cuts took effect. The Republican tax law had raised it to $2,000, but it would lapse in 2025 unless Congress stepped in.

However, the Biden proposal permanently maintains full refundability, meaning all families can access it regardless of their tax obligations. It also keeps monthly payments, a change from families only being able to get it as a lump sum at tax time.

Republicans are unlikely to support the expansion of the tax credit, arguing it would grow the national debt and disincentivize people from working if they received cash with no strings attached. Some GOP senators are introducing plans of their own, such as Sens. Josh Hawley and Mitt Romney.

Read the original article on Business Insider