Monthly Child Tax Credit Payments Could Return in New Plan From Sen. Mitt Romney

Parents hoping for a return of the monthly child tax credit payments may have another option following a proposal from Republican Sen. Mitt Romney, who is working to gain bipartisan support for his Family Security Act.

While the Democrats continue to debate the resumption of the expanded monthly child tax credit payments, which expired in December 2021, under Pres. Joe Biden's Build Back Better Plan, Romney's proposal will also follow six months of rollout that will afford parents the money to pay for basic needs, child care, and utilities.

Romney's proposal sets up provisions for American families amounting to $350 a month for each child. Parents expecting a new baby may also get four payments ahead of the mother's due date.

However, Romney's proposal has made one big change compared to the Democrats' plan, in that those eligible to receive child tax credit payments should comply with stringent work requirements. The Republican senator said that the Family Security Act initially did not include the work requirement, but then he adopted the change after discussing the payments with the Director of Economic Policy Studies at the American Enterprise Institute, Michael R. Strain, his party mates, and some Democrats.

Democrats' Child Tax Credit Plan Stalls

It's this work requirement that has stalled the Democrats' child tax credit proposal with Democratic Sen. Joe Manchin. He is largely opposed to his party mate's proposal because it stipulates that parents, who are not working or paying taxes, could also get the benefit. Machin has been saying that the eligibility requirement for child tax credit beneficiaries must apply only to parents who have an income of $75,000 or less a year.

Those who agree with Manchin believe that the work requirements are necessary to provide safety nets since child tax credit payments take up a significant portion of the federal government's budget. Democratic Sen. Michael Bennet, on the other hand, does not believe that work requirements will help advance the Democrats' proposal.

"But we shouldn't punish children simply because their families are struggling to find work," Bennet said, per NBC News.

Elaine Maag of the Urban-Brookings Tax Policy Center said that the Republican's proposal is not intended for the kids. Moreover, if the parents lose their jobs, they will have a harder time without the child tax credit payments.

Momentum for Monthly Child Tax Credit Payments Growing

Meanwhile, a Republican aide said that momentum for Romney's monthly child tax credit payments proposal is growing. The aide also noted that lawmakers are starting to see that this plan could only push forward with bipartisan support. Romney has yet to introduce the Family Security Act to the Senate floor.

While child tax credit payments have been around for some years, the pandemic crisis launched an expanded version that included monthly benefits even for non-taxpayers to help impoverished families during the pandemic. According to the Center on Poverty and Social Policy at Columbia University, since the monthly payments stopped, child poverty rose to 17 percent in January, from 12 percent last December. The increase is now the highest poverty rate since the first wave of the pandemic.