Monthly child tax credit payments to start hitting bank accounts in July

National

WASHINGTON (NewsNation Now) —  The first monthly payment of the expanded Child Tax Credit from the American Rescue Plan will be made on July 15, according to the U.S. Treasury Department and the IRS.

Approximately 88% of children in the United States are expected to receive monthly payments automatically, the Treasury Department said.

“For working families with children, this tax cut sends a clear message: help is here,” President Joe Biden said in a statement.

The payments will be made on the 15th day of each month unless that day falls on a weekend or holiday. Eligible families are expected of up to $300 per month for each child under the age of 6 and up to $250 per month for each child 6 and above.

“The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half,” according to a Treasury Department news release.

Around 39 million families in households covering more than 65 million children are expected to receive the monthly CTC payments through direct deposit, paper check, or debit cards.

The payments will stop at the end of the year unless Congress re-authorizes them. President Biden’s $1.8 trillion American Families plan would extend it through 2025. Republicans have panned the proposal as too expensive, and it faces stiff odds in the 50-50 Senate.

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