$300 Monthly Child Tax Credit Boosts Economy: Biden Seeks to Make Permanent Program That Cut Child Poverty Rates by 40%

President Joe Biden aims to make the enhanced child tax credit permanent citing its success in reducing child poverty during the pandemic.

Biden Aims to Make Child Tax Credit Permanent, Citing Economic Benefits

President Joe Biden wants to bring back and make permanent the enhanced child tax credit which was first introduced in his American Rescue Plan in 2021. This program helped low-income families during the COVID-19 pandemic by sending $300 a month for each child which significantly cut down child poverty rates. Biden believes this credit is crucial for economic stability and aims to make child care more affordable and available for all, according to the report of Marca.

In a recent speech in Nevada, Biden explained how affordable childcare helps the economy grow. He said that when families don’t have to worry about paying for child care and they can focus more on their jobs which boosts the economy. The expanded child tax credit had a clear positive effect during its time as child poverty dropped significantly. But when Congress did not extend the program child poverty rates went up again the next year.

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(photo: NRCL)

Child Tax Credits Become a Growing Trend Across the Nation

Since the federal government hasn’t revived the program many states have started their child tax credits. Fourteen states have set up these benefits and thirty-one states along with the District of Columbia and Puerto Rico have similar programs. This local effort shows that there is broad recognition of the need for financial help for low-income families.

Furthermore, Biden’s push to reinstate the child tax credit highlights his commitment to supporting families and driving economic progress. By aiming to make this policy permanent and he seeks to build on the success seen during the pandemic, where the enhanced credit significantly reduced child poverty. With some states already implementing their own versions of the credit and there is a growing movement to ensure that families receive the financial support they need even in the absence of federal action.

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