Several lawmakers have come up with proposals to make the expanded child tax credit, which expired in 2021, permanent, but with little success so far. Now, one lawmaker is adding an extra incentive with her proposal for a renewed national child tax credit, and it is a $2,000 baby bonus payment.
$2,000 Baby Bonus Payment: Who Would Get It?
Earlier this week, U.S. Rep. Rosa L. DeLauro, the top Democrat on the budget-writing Appropriations Committee, introduced her proposal for an expanded child tax credit that includes a $2,000 baby bonus payment for people who decide to have a baby.
The proposal for the baby bonus payment comes at a time when DeLauro and two allies have gathered over 200 co-sponsors to reintroduce the national child tax credit. Suzan DelBene of Washington and Rep. Ritchie Torres (D-N.Y) are the other original co-sponsors of the bill.
“It lifted nearly 4 million children out of poverty in one year alone. It worked, and it is time we get it working for families and children once more,” DeLauro said.
If approved, this added incentive could push the total benefit to as much as $5,300 in the first year of a child’s life. Under the proposal, the expanded child tax credit, including the baby bonus, would be available in full to households earning up to $150,000, or $75,000.
The $2,000 baby bonus payment comes at a time when the country is witnessing declining birth rates. According to the Centers for Disease Control, the birth rates in states are at historic lows, with Connecticut and New England reporting the lowest birth rates in the country.
Expanded Child Tax Credit: How Much Money To Expect
The 2021 American Rescue Plan Act expanded the child tax credit to $3,600 for children under age six and to $3,000 for children between ages 6 and 17. Currently, the maximum available credit is $2,000, which is paid out at tax time.
So, along with expanding the child tax credit, this new legislation from DeLauro would raise the credit amount in the month a baby is born to $2,000. It means parents of a child born in January could get up to $5,300 for that year. The credit amount would drop to $3,600 the following year.
Parents of children born through June would get a bigger credit than what they would have received in 2021.
The proposal for the $2,000 baby bonus payment didn’t come up during the debate in the Ways and Means Committee last week. At the time, DelBene wanted to present it as an amendment to a GOP tax bill that aims to expand the standard deduction for individuals and households. DelBene’s amendment was ruled nongermane, and Republicans rejected an attempt to overturn the ruling.
A report from Roll Call news noted that Democrats plan to push the legislation further during the upcoming bipartisan budget talks.
