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Dems look to salvage child tax credit after Manchin blows up Biden's spending bill
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Democrats are making last-ditch efforts to save a key piece of their ambitious tax-and-spending bill, days after Sen. Joe Manchin torpedoed the $1.7 trillion package.
The lawmakers view a more generous version of the child tax credit – first established in March with the passage of the American Rescue Plan – as a centerpiece of their platform ahead of the 2022 midterm elections and are hoping to extend the program by at least one year.
The stimulus bill expanded the credit to $3,000 from $2,000 for the 2021 tax year, but it's poised to expire this year. The first half was delivered in monthly payments from July to December with $300 for children under the age of six and $250 for those ages 6 to 17, but the last check was mailed out last week. The second half will be delivered as a lump sum when families file their 2021 tax returns in the spring.
IRS TO DELIVER FINAL CHILD TAX CREDIT PAYMENT OF 2021 TO 36M FAMILIES
Proponents have hailed the program as a vital poverty-fighting tool. If the enhanced credit is not extended, an estimated 10 million children are at risk of falling below the poverty line, according to an analysis from the Center on Budget and Policy Priorities, a progressive think tank. Another 27 million will lose all or part of the credit.