Legislation to expand the Child Tax Credit is currently stalled in the Senate amid deep disagreements about its passage before the 2024 election.
The federal Child Tax Credit was first introduced in 1997 and, presently, allows parents with children aged 17 and under to write off up to $2,000 per child on their annual tax burden, of which $1,600 is refundable. The credit was temporarily expanded to $3,000 for the year 2021 and made fully refundable—leading to an estimated 44 percent reduction in the national child poverty rate. Proponents argue it is necessary to help low-income families afford food and clothing, among other things, for their children.
In January, negotiators in the Senate and House of Representatives announced a bipartisan deal to expand the credit for tax years 2023, 2024, and 2025, which passed the House by a vote of 357–70 later that month.
However, nearly six months later, no action has been taken on the bill in the Senate, with time running out for the 118th Congress to pass it.
Hellbound and Down 