A monthly benefit introduced by the US government in 2021 amid a steep rise in the cost of living and the continued spread of Covid-19 saw its last payout in December, leaving millions of American families in a slot.
This weekend marks the first time in six months that families across the United States will not receive monthly payments from the federal child tax credit program.
The legislation gave low- and middle-income parents up to $3,000 for each child aged 6 to 17 and $3,600 for each child under six. Payments were income-based and began phasing out for people earning over $75,000 and married couples earning over $150,000. The first semester was delivered in monthly installments from July to December.
Monthly child tax credits, worth up to $300 per child per month, expired after Congress failed to renew them with President Joe Biden’s social spending plan known under the name of Build Back Better Act. The bill is stalled in the Senate.
According to the Internal Revenue Service (IRS), some 36 million families, or about 60 million children, received the payments each month.
Some 10 million children are currently at risk of falling below the poverty line without the enhanced tax credit, according to data provided by the Center on Budget and Policy Priorities, cited by Fox Business.
US authorities promised that the benefits would be renewed for years to come. However, parents could wait months for the next payment to arrive with Congress deadlocked.
“It’s devastating for families,” Bruce Lesley, president of First Focus on Children, told Bloomberg.
“This disruption is creating a chaotic situation, especially for low-income families. Many have come to rely on it as an important part of how they manage to make ends meet,” he added.
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