Short-term extension of the “missed opportunity” child tax credit
Representative Rosa DeLauro has been lobbying for decades to extend the child tax credit to make it a real effective tool to reduce child poverty. She was one of the members of Congress who was crucial in getting the changes for 2021 included in the US bailout. However, due to budget constraints on the massive Covid-19 relief and revival bill changes will expire at the end of the year.
President Biden had requested the extension of the program until 2025 that was in the original draft spending bill that Democrats are negotiating right now. However, Senators Joe Manchin and Kyrsten Sinema want the price of $ 3.5 trillion reduced and to achieve this, programs like the extension of the child tax credit can be shortened.
Previous changes to the child tax credit in 2017, which doubled the amount families could claim to $ 2,000 and made $ 1,400 of that amount fully refundable, that is, if you paid less tax than the credit value, you received the excess as a refund, will expire in 2025. Bring it down to $ 1,000 and lose the refundable portion.
By extending the changes to the child tax credit until 2025, the hope was that the program would prove so popular that there would be political pressure to make the expansion permanent.