March 11, 2021

Is the Third Stimulus the Beginning of a Guaranteed Family Income?

It’s understandable that the latest round of direct payments, new funding to combat the coronavirus pandemic, and federal aid to state and municipal governments is getting the lion's share of press attention. But, tucked into 2021’s $1.9 trillion stimulus package is a provision that could have life-changing effects for families with children: an expansion and reworking of the child tax credit.

Championed solo for nearly two decades by Representative Rosa DeLauro of Connecticut, the idea to expand the child tax credit has gained a new lease on life and more admirers as the pandemic and lockdowns have had a deleterious impact on families and children. At the moment, the child tax credit is disbursed to parents in the form of a tax refund and is capped at $2,000 per year.

However, with the passage of the latest round of stimulus, changes will make it easier for families. First, the amount for eligible families would increase to a maximum of $3,600 per year and would expand coverage, reaching 93 percent of children, 69 million all told, according to the New York Times. This is a significant and needed increase, considering the current state of employment in the country and the distinct lack of social safety nets related to paid family and sick leave and mandatory vacation time. 

More important, however, the money would no longer appear as a tax refund once a year, but would be disbursed on a monthly basis in the form of direct payments. Such a change would increase stability for families.

Although the expansion of the child tax credit is temporary in the current legislation, there are firm plans to make these changes permanent, which would be a huge reversal of Democratic policy in light of Bill Clinton’s evisceration of welfare in the mid-1990s. Already, 19 other OECD countries provide direct payments to families with children. It’s high time the US caught up.


Law360 Quotes Senior Associate Alex Berke in Article Covering Gov. Hochul’s Recent Proposal to Initiate Prenatal Leave

January 25, 2024
Leave
Berke-Weiss Law in the News
Senior Associate Alex Berke is quoted by Law360 in an article about proposed prenatal leave in New York.

Senior Associate Alex Berke Quoted in Recent Article Published by the American Bar Association

December 18, 2023
Berke-Weiss Law in the News
Senior Associate Alex Berke shares thoughts and advice in recent article published by the ABA.

Berke-Weiss Law Represents Plaintiff in an Adult Survivors Act Lawsuit Covered By NPR

December 15, 2023
Berke-Weiss Law in the News
NPR recently covered a complaint filed in the NYS Supreme Court with Berke-Weiss Law as counsel for the plaintiff.

Get In Touch

Knowing where to turn in legal matters can make a big difference. Contact our employment lawyers to determine if we can help you.