One of the most popular features of the American Rescue Plan was the money sent directly to the American people. The bill signed into law by President Joe Biden back in March delivered $1,400 payments directly to most Americans (after payments of $1,200 and $600). It also expanded the federal Child Tax Credit and delivered the first half of the expanded credit directly to families in the form of monthly payments.
Today, the House of Representatives passedPresident Biden's Build Back Better Act. That bill would extend those payments into 2022. It would also seek to make the refundability of the tax credit permanent. That means that families would be able to get te money regardless of whether or not they file taxes.
Currently, the Child Tax Credit is $3,600 for children under 6 years old and $3,000 for children aged 6 to 17. The first half of the extended credit is being delivered to families as monthly payments between July and December of 2021. That works out to $300 per month for children under 6 years old and $250 per month for children aged 6 to 17. Payments phase out for people with higher incomes.
The future of those payments remains uncertain.
The Build Back Better plan still has to get passed by the U.S. Senate. Republican West Virginia Senator Joe Manchin has raised concerns about the cost of the bill. He has suggested that people should have a job in order to receive the credit. He has not committed to voting for the bill.