It's been about a year since the American Rescue Plan funded the third and last batch of stimulus checks, as millions of cash-strapped, pandemic-weary Americans already know.
More government-issued direct payments have been requested by Washington lawmakers and ordinary individuals in letters, petitions, and interviews over the last twelve months. In most cases, though, the White House and Congress have remained silent.
Although a fourth stimulus check has never been ruled out totally, restarting a popular program that ceased when the calendar switched to the new year could provide a more feasible road for more direct payments-monthly at that.
That is, of course, the expanded child tax credit, which rewarded eligible parents with up to $3,600 for a kid under the age of six and up to $3,000 for children aged six to seventeen from July to December. This amounted to a $250 or $300 stipend paid to parents each month for each child. When these qualified households submit their federal tax returns this year, they will be entitled to the second half of the tax credit money.
Democrats required the very contentious Build Back Better legislation to pass for the expanded credits to remain for another year, which has not happened partly owing to opposition from Sen. Joe Manchin (D-WV).
Senators have long argued that extending the credits would discourage people from working and that any new federal expenditure would exacerbate the existing inflationary pressures.
Meanwhile, Sen. Mitt Romney (R-Utah) has proposed a monthly cash benefit program with job conditions connected to the payments, most likely in an effort to attract more bipartisan support.
The Family Security Act seeks to provide $350 per child to eligible families with children under the age of five, and $250 per child to households with children aged 5 to 17.
However, Elaine Maag, a senior fellow at the Urban-Brookings Tax Policy Center, told CNBC that a key question to consider is whether tax benefits are intended for adults or their children.
"If they are truly intended for children, then the work requirement makes less sense," she told the news outlet.
Maag discussed how tax credits can have a direct impact on a child's home environment and future years on HealthAffairs.org.
She stressed that the Earned Income Tax Credit reduces the risk of low birth weight, based on data, by allowing families to seek better insurance coverage, reducing dangerous behaviors like smoking, and enhancing prenatal care.
It has also been proven that increasing income through tax credits improves home conditions, nutrition, and educational and economic attainment.
