Economic Relief Bill to Include New, Larger Child Tax Credit

House Democrats are starting to release their proposed plans for the upcoming $1.9 trillion economic relief package that President Joe Biden is likely to pursue via the budget reconciliation route that requires only a majority vote.

Among the provisions, first reported by The Washington Post, is a proposal by the House Ways & Means Committee to include a child credit of $3,600 a year for children 5 and younger and $3,000 for children 6 to 17 who live with single parents earning up to $75,000 and couples earnings up to $150,000. 

The credits exceed the current $2,000 child credit for all children under 17 that is available to single parents earning $200,000 or less and couples earning up to $400,000. The existing and proposed child credits phase out for families with incomes over their respective income thresholds. 

Sen. Mitt Romney, R-Utah, recently introduced his Family Security Act, which would provide an even larger credit for families: $4,200 annually ($350 per month) for children 5 and under and $3,000 per year ($250 per month) for children 6 to 17, which suggests possible bipartisan support for this provision of the Biden relief package when it is introduced.

House Committees’ Plans

The House Ways & Means Committee late Monday unveiled its plans for the tax and spending provisions included in its proposal. In addition to a larger child tax credit the proposal includes direct payments to families, extended unemployment and stabilization of pensions for the more than one million Americans who participate in multi-employer retirement plans.