January17, 2024
In a notable effort to address child poverty, Congressional negotiators have unveiled a proposal to increase the Child Tax Credit (CTC) starting in 2024. This bipartisan agreement, if approved, has the potential to lift 400,000 children out of poverty.
Leah Millis/Reuters
The Proposed Increase
The maximum refundable portion of the CTC is slated to increase from the current $1,600 per child to $1,900 in 2024. This signifies that low-income families, not paying income taxes, could receive up to $1,900 refunded from the $2,000 per-child credit, as opposed to the current $1,600. The amount is set to further rise to $2,000 in 2025.
Fairness for Families with Multiple Children
The proposed changes also focus on ensuring a fair phase-in of the credit for families with multiple children. This step is crucial in making the benefits of the CTC more accessible to low-income families.
The Road Ahead
While the proposal marks a substantial advancement, its journey to becoming law remains uncertain. The bipartisan agreement was reached by Senate Finance Committee Chairman Ron Wyden (D-Ore.) and House Ways and Means Committee Chairman Jason T. Smith (R-Mo.). However, House Republicans might hesitate to grant President Biden even a partial victory on one of his key domestic economic policy priorities.
Impact on Families
Senator Wyden emphasized, “Fifteen million kids from low-income families will be better off as a result of this plan.” The expansion of the CTC for some of the lowest-income families could be a game-changer, providing much-needed financial relief.
In conclusion, the proposed Child Tax Credit increase marks a significant step toward reducing child poverty in the United States. As the final decision awaits, millions of families across the country stand to benefit from this potential change.
