WASHINGTON (AP) — The child tax credit had always been an empty gesture to millions of parents like Tamika Daniel.
That changed Thursday when the first payment of $1,000 hit Daniel’s bank account — and dollars started flowing to the pockets of more than 35 million families around the country. Daniel, a 35-year-old mother of four, didn’t even know the tax credit existed until President Joe Biden expanded it for one year as part of the $1.9 trillion coronavirus relief package that passed in March.
Previously, only people who earned enough money to owe income taxes could qualify for the credit. Daniel went nearly a decade without a job because her eldest son is autistic and needed her. So she got by on Social Security payments. And she had to live at Fairfield Courts, a public housing project that dead-ends at Interstate 64 as the highway cuts through the Virginia capital of Richmond.
But the extra $1,000 a month for the next year could be a life-changer for Daniel, who now works as a community organizer for a Richmond nonprofit. It will help provide a security deposit on a new apartment.
“It’s actually coming right on time,” she said. “We have a lot going on. This definitely helps to take a load off.”
Biden has held out the new monthly payments, which will average $423 per family, as the key to halving child poverty rates. But he is also setting up a broader philosophical battle about the role of government and the responsibilities of parents.
Democrats see this as a landmark program along the same lines as Social Security, saying it will lead to better outcomes in adulthood that will help economic growth. But many Republicans warn that the payments will discourage parents from working and ultimately feed into long-term poverty.
Some 15 million households will now receive the full credit. The monthly payments amount to $300 for each child who is 5 and younger and $250 for those between 5 and 17. The payments are set to lapse after a year, but Biden is pushing to extend them through at least 2025.
The president ultimately would like to make the payments permanent — and that makes this first round of payments a test as to whether the government can improve the lives of families.
Biden invited beneficiaries to the White House to mark the first round of payments, saying in a Thursday speech that the day carried a historic resonance because of the boost it will give families across the nation.
“This would be the largest ever one-year decrease in child poverty in the history of the United States of America,” the president said. “Millions of children and their families, starting today, their lives are about to change for the better. And our country would be better off for it as well.”