The next round of child tax credit payments is expected to start hitting bank accounts next Friday.
The August payment is the only disbursement scheduled to begin on the 13th. All other distribution dates this year fall on the 15th of the month.
These monthly payments are advanced payouts on the child tax credit parents already enjoyed at tax time, but they were beefed up this year as part of the Biden administration’s American Rescue Plan.
For this year only, the child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously, children had to be 16 or younger.
Up to half of that credit is being distributed over the final six months of this year, meaning a typical parent of one kid over 6 can expect a $250 payment later this month as the first of six installments of the advanced payment of $1,500. There are also phase-outs on the increased benefits based on income.
While the next payment is the second of six deposits coming, the Biden administration and members of both parties have voiced support for making the payments permanent as a way to limit the number of American children suffering from poverty.
In addition to beefing up the child tax credit, some lawmakers have recently proposed legislation that would hand over recurring stimulus checks, or guaranteed income, with monthly payments of up to $1,200 for adults and $600 for children.
The two bills, a guaranteed income bill and an alternative economic metric bill, were recently introduced by progressive democratic lawmakers.
Rep. Ilhan Omar posted an overview of the guaranteed income proposal on her website. It calls for a $2.5 million pilot program to launch in two years with an eye toward full national rollout in 2028.
As the economy improves, large spending bills will likely face a number of hurdles in Congress, but momentum on a $1.2 trillion infrastructure plan currently on the table in Washington D.C. suggests there are some spending issues where Republicans and Democrats are willing to work to hammer out an agreement.
Alternatively, the Biden administration may attempt to pass a child tax credit extension or other spending proposals through a process known as budget reconciliation, which does not require Republican support.