WASHINGTON--Some 35 million American families have received their first monthly payout from the U.S. government in an expanded income-support programme that President Joe Biden said on Thursday could help end child poverty.
Under the Child Tax Credit programme that was broadened under Biden's COVID-19 stimulus, eligible families collect an initial monthly payment of up to $300 for each child under six years old and up to $250 for each older child.
Payouts to families, covering nearly 60 million eligible children, totalled about $15 billion for July. The payments are automatic for many U.S. taxpayers. Others need to sign up.
Biden wants to extend expanded, monthly benefits for years to come as part of a $3.5 trillion spending plan being considered by Senate Democrats, who expect strong Republican opposition to the full bill. "It's our effort to make another giant step toward ending child poverty in America," Biden said in a speech at the White House attended by nine families who will benefit from the relief payments. "This can be life changing for so many families."
The Child Tax Credit has been likened to a universal basic income for children, within income limits, helping families meet expenses from rent to food and daycare. The Center on Poverty and Social Policy at Columbia University estimates the expansion can reduce the U.S. child poverty rate by up to 45%.
Dominique Spencer, who works at Jubilee Jumpstart, a local early childhood education center in Washington, said the tax credits would help her pay down debts, cover the cost of books for graduate school and buy needed items for her two children. Ultimately, she said the additional funds could help her family buy a home, a dream that has grown out of reach for more working Americans.
