Three U.S. House Democrats propose a child tax credit revival bill and a $2,000 “baby bonus” for newborn families. Representatives Rosa DeLauro (C.T.), Suzan DelBene (W.A.), and Ritchie Torres (N.Y.) include a bonus in a plan to reintroduce the 2021 American Rescue Plan Act. Act provided $250/month for qualifying children aged 6-17 and $300/month for children under 6. The program expired in 2021, but the new bill aims to expand CTC permanently.
“When we improved Child Tax Credit in 2021, it provided economic security for American families. It was the largest tax cut for middle-class and working families,” says DeLauro. “Monthly payments helped parents with bills, food, school supplies, music lessons, mortgages, and lifted 4 million kids out of poverty in a year.”
The proposed legislation makes expanded CTC permanent and raises credit to $2,000 in the month of the baby’s birth, per Roll Call. The annual benefit for January births could reach $5,300, decreasing to $3,600 next year. Roll Call reports parents of children born through June would still get larger credit in the first year than the original 2021 amount.
The baby bonus advantage diminishes as monthly credits end at age 18. However, the overall per-child benefit remains the same throughout their lifetime. Notably, the baby bonus is not included in previous versions of the bill or the Senate companion bill, which also expands the child tax credit to $3,600/month.
Republicans and Democrats may find room for compromise as GOP pushes tax reform. Expanded CTC could be a bargaining chip in negotiations. Unclear if Republicans will support baby bonus legislation; DelBene’s attempt to introduce it as an amendment to the GOP tax bill was rejected.
In conclusion, House Democrats propose a bill to reinstate the child tax credit and introduce a baby bonus. The legislation aims to provide long-term support for families, but including baby bonuses remains debated as tax reform discussions continue.