Lawmakers are working through the weekend as they close out the congressional
term and try to avoid a government shutdown later this coming week
as Laura Baron Lopez reports, Democrats are hoping the last minute
deal making buys them a final chance to secure an elusive policy
goal. Expanding the child tax credit.
Closing days, Congress tries to put a bow on its budget families
struggling with their own hope for more help from D. C in the New
year.
As a parent, one of the biggest stressors and anxiety inducers that
I ever have is the feeling that I am not providing enough. I am not
doing enough. I am not able to give them everything that they need,
and many things that they want
teaches middle school history in small town, West Virginia.
She misses last year, we could breathe easier.
And everything felt
More secure. But this year, Congress left a hole in her checkbook.
As part of their response to the pandemic. Democrats expanded access
to the child tax credit in 2021 increase the maximum benefit from
$2000 per child to 3600
cost swelled with the arrival of twin boys that February $900 a month
meant fuel for the wood stove stock shelves.
And critical home and car repairs and also gave us the opportunity
to take care of medical things immediately instead of waiting until
we could budget for it. We tried very hard not to depend on it because
we didn't trust that it wouldn't go away
family managed to save some of last year's extra credit.
But Congress let the expansion expire, and this year they're benefit
will drop from nearly $11,000 to roughly 6000. Most of the time.
We are very much
Waiting until the end of the month to determine whether or not we
have what we need for the next month.
It's a struggle. She lives at home and sees at school where the return
of financial stress is evident in students, clothes and on their
faces.
It shouldn't be crossed Fingers say a prayer.
Pipe dream to hope that my kids would have the basic things that
they need, and that their families would have the ability to take
care of them without lying awake at night, wondering what catastrophe
might
Send them spiraling What we saw. Columbia University's Megan Curran
sees millions of experiences like those of gang students in the national
data collected last year. We have the evidence here with the expanded
child tax credit is really clear. Um, on balance. It was a really,
really good thing for kids and for their families, expanded child
tax credit helped to reduce child poverty to the lowest level we've
ever seen it in this country.
U. S census and IRS data suggests the expanded credit lifted nearly
four million kids out of poverty, cutting the rate nearly in half.
Researchers found the greatest benefit for black and Latino Children,
single parent homes and large families, those living in rural areas
and those with young kids. All groups historically cut off from the
child tax credit due to lower earnings.
We stopped short of tying the credit to all of these types of circumstances
that kids can't control and then gaps were closed, and all of the
kids who used to be left out were included. This was this was a game
changer. But when the $100 billion expansion expired, so did the
gains in financial stability, Food, security and equity.
The issue split Congress. It's fate largely decided by one Democratic
senator. West Virginia's Joe Manchin. You're done. This is this is
a no.
This is a no mansion would eventually sign off on the president's
legislative agenda, but only after securing about a trillion dollars
worth of cuts, including the extension of the more generous credit
and Republicans argued parents could live off of the government,
and that added cost would intensify inflation. He demanded a work
requirement around the rest of his party refused to give until now.
Democrats are hoping to sell mansion and 10 Republicans on a watered
down expansion in exchange for corporate tax breaks. Our caucus feels
very strongly that your child tax credit should be there as long
as there are some corporate tax breaks, and so far we don't have
agreement from the Republicans, Conservatives appear open to a deal.
I have a number of concerns about the way that the expansion was
initially constructed
Strain with the conservative American Enterprise Institute says that
the expansion and previous iterations are
Overly generous to those who are not in desperate need.
The question is not whether or not the way the credit was structured
would be expected to reduce employment. I think the answer is yes,
it would be expected to produce employment. The right question to
debate is whether or not that's worth it.
In terms of the reduction in poverty. Reasonable people can disagree.
On that point, he says. A work requirement is not necessary, but
incentives to work are
Data on the impact, more generous program has on the labor force
is mixed.
Back in West Virginia, Chris Genk, Molly's husband stays home with
the kids. Daycare options are sparse and cost more than he would
earn.
Mali's picked up extra jobs with the school since the expanded credit
expired to help cover small expenses, but at the cost of time with
her family
She's not counting on Congress, providing more help.
But she's hopeful.