How the COVID relief bill could help reshape the finances of American families [View all]

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How the COVID relief bill could help reshape the finances of American families (s: $1.9 trillion stimulus, American Rescue Plan Act of 2021), Minnesota Public Radio, 3/14/21

Included in President Joe Biden's $1.9 trillion relief package is a provision that provides many American parents an allowance of $250 a month for each child and $300 for kids under 6.

Although set to last only through this year, ...

The federal government already offered a limited tax break for parents, but the new law expands that in a number of important ways.

First, it vastly expands the amount of money provided to families — 50 percent to 80 percent more for each child.

Second, it's designed to be given out monthly, like an allowance, rather than just once a year.

And third, parents with little or no income still qualify for the full amount.

That's a departure from the existing tax break, which is less generous to low-income workers and gives the poorest families nothing at all.

"This is landmark legislation that would really slash child poverty and target benefits to the lowest-income families that need them the most," says Kris Cox, deputy director of federal tax policy at the left-leaning Center on Budget and Policy Priorities.

Congressional Democrats are already hoping to make the child subsidy payment permanent. Extending the child subsidy would cost about $100 billion a year.

MORE: https://www.mprnews.org/story/2021/03/14/npr-how-the-covid-relief-bill-could-help-reshape-the-finances-of-american-families

Tags: $1.9 Trillion Stimulus, ARPA 2021, American Rescue Plan Act of 2021