Stimulus update: Proposed legislation would give $393 every month to families with children

Families with children could soon receive a monthly payment of $393 per child, thanks to proposed legislation from several Democratic lawmakers. The End Child Poverty Act would replace the child tax credit and the child provisions in the earned income tax credit with these monthly payments.

If passed, the Social Security Administration would distribute the payments, which would be available to any family regardless of their income level. Children would be automatically enrolled into the program at birth, according to a press release from Rep. Ilhan Omar (D-MN), who reintroduced the legislation earlier this month with fellow Democratic Reps. Rashida Tlaib (MI) and Jesus Garcia (IL).

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“Poverty is a policy choice,” says Tlaib. “Currently, one in every five children in Michigan lives below the poverty line. The End Child Poverty Act will create a universal child assistance program and ensure that every child has the resources they need to reach their full potential.”

This legislation comes in the wake of the expanded child tax credit coming to an end. It was expanded in response to the COVID-19 pandemic, giving taxpayers who filed their taxes for the 2020 and 2021 tax years $3,600 for children 5 and under, and $3,000 for children ages 6 to 17.

The expansion to the child tax credit was made possible by the American Rescue Plan, which was signed by President Joe Biden in 2021. For this tax year, however, the credit has reverted back to its original value, giving a maximum tax credit of $2,000 per child under the age of 17.

“In the midst of a devastating pandemic, President Biden and Democrats in Congress took dramatic action to help families in my district stay afloat — expanding lifechanging benefits like Medicaid and SNAP, and expanding the child tax credit to finally benefit the most vulnerable among us,” says Omar.

“This action alone cut child poverty nearly in half,” Omar said. “It is a tragedy that we let the child tax credit expansion expire.”

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To be eligible for the proposed payments, a tax filer must have a child who is under 17 and claim them as a dependent on their tax return. The child must have lived with the filer for over half of the year, according to the IRS. Other qualifications for this credit include being a U.S. citizen, national, or resident alien. Lastly, the dependent and their spouse must not have used a joint return when filing taxes.