Families Left in The Lurch as $1.7 Trillion Spending Bill Excludes Child Tax Credit

According to a report by ABC News on December 20, 2022, lawmakers are trying to pass a $1.7 trillion spending bill by the end of 2022 that includes provisions for defense, emergency assistance for Ukraine, changes to healthcare programs, and Secure 2.0 provisions to aid retirement savers.

However, the Child Tax Credit has not been included in the bill, which may cause problems for families in 2023.

Many families struggled with inflation and higher living costs in 2021, resulting in difficult decisions such as incurring debt or cutting expenses. A boost to the Child Tax Credit would have provided relief to these families, but lawmakers were unable to implement the boost until 2022. It is uncertain if they will be able to implement the boost for 2023, based on the report by The Motley Fool on December 23, 2022.

The enhanced Child Tax Credit implemented in 2021 had a positive impact on families by increasing the maximum value to $3,000 for children aged 6 to 17 and $3,600 for children under 6, becoming fully refundable, and providing half of the credit in monthly installments from July to December 2021. The credit also helped lift millions of children out of poverty and assist families struggling with food insufficiency, according to The Motley Fool.

However, in the absence of enhanced credit, many families have had a difficult year due to rising living costs. As the boost to the Child Tax Credit is not included in the current spending package, it is unlikely that the enhancement will be implemented in early 2023.

Lawmakers are trying to enhance the Child Tax Credit to provide relief to families in need but face challenges, including disagreement over a minimum earnings requirement and finding funding. It is uncertain if the enhanced credit will be implemented in 2023, and it is important to address these challenges in order to provide the necessary support to financially struggling families.