First child tax credit payments go out July 15

WASHINGTON (NewsNation Now) —  The first monthly payment of the expanded Child Tax Credit from the American Rescue Plan will be made on July 15, according to the U.S. Treasury Department and the IRS.

Approximately 88% of children in the United States are expected to receive monthly payments automatically, the Treasury Department said.

“This tax cut sends a clear and powerful message to American workers, working families with children: Help is here,” Biden said in remarks at the White House.

The payments will be made on the 15th day of each month unless that day falls on a weekend or holiday. Eligible families are expected of up to $300 per month for each child under the age of 6 and up to $250 per month for each child 6 and above.

“The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half,” according to a Treasury Department news release.

Households covering more than 65 million children are expected to receive the monthly CTC payments
through direct deposit, paper check, or debit cards.

The payments will stop at the end of the year unless Congress re-authorizes them. President Biden’s $1.8 trillion American Families plan would extend it through 2025. Republicans have panned the proposal as too expensive, and it faces stiff odds in the 50-50 Senate.

Congress’ Joint Committee on Taxation estimated that the one-year expansion of the credit will cost $110 billion.

Progressives argue a permanent extension will ease the cost to taxpayers by helping move poor families, especially minorities, off of some government supports. They also indicated a willingness to consider other offsets of costs.