As per officials who spoke on the condition of anonymity to share discussion details, senior Democratic lawmakers drafted a law for President Biden's stimulus check increase as a child tax credit that will order the IRS to send regular monthly payments to American families.

The IRS will be charged with depositing Biden's stimulus checks worth $300 per month per child younger than 6, as well as $250 per month per child aged 6 to 17, under one draft of the proposal being debated. For small children, it will amount to $3,600 over the year, as well as $3,000 a year for older children, officials said.

Unlike the stimulus checks, according to three senior Democratic officials who spoke on the condition of anonymity to discuss internal plans, the Biden administration and Democratic policymakers are aiming to make this child benefits a permanent government initiative that will proceed in future years. The new plan calls for a one-year extended benefit to be implemented, in which Democrats usually expect that political momentum would compel Congress to expand it. The advantage will be phased out for wealthier Americans, but the exact income standard has not been determined.

Biden stimulus check forecasts

According to forecasts by the Commission for a Balanced Federal Budget, a non-partisan body, the advantage could prove expensive, increasing the federal debt by as much as $120 billion for one year. But as researchers at Columbia University have found, it could curb child poverty in the United States by more than 50 percent.

The bill is likely to be criticized by Congressional Republicans because of its price tag. However, with Sens. Marco Rubio and Mike Lee among the GOP politicians who have advocated for significantly raising the child tax credit, similar proposals have garnered pockets of Republican support. In the previous Legislature, all Senate Democrat-backed bills increased the child tax credit.

As part of Biden's stimulus check plan of $1.9 trillion economic, he revealed earlier this month his intention to press for an extension of the child tax credit. Congressional Democratic workers have made considerable strides in writing the legislation.

Under Biden's stimulus checks, close to how the $1,200 were disbursed last year, the IRS will automatically send these payments to American families. This strategy does not force taxpayers to wait to claim the credit before they file their taxes. The monthly payments will be earned from households even though they owe the government more taxes than the credit value.

A senior Democratic aide involved in drafting the law said, "This will have more collective buy-in if a broader swath of the population directly receives the payment," citing Biden's stimulus checks popularity.

Democratic policymakers are now exploring whether parents should set up an online platform for the Treasury Department to handle the new credit disbursement, these individuals stated. The proposal will seek to allow taxpayers the option of earning a tax credit of one year's worth at the filing season, rather than every month if they so choose. Aides warned that it might take time for officials from the Treasury Department to effectively develop a site that could accommodate millions of such demands. Some Democrats fear whether the IRS will have the capacity to disburse the payments successfully.