STIMULUS UPDATE | Monthly payments may be reinstated, but there’s a catch.

The President’s American Rescue Plan, which was signed into law by Vice President Joe Biden, provided a significant amount of stimulus money to American families.

After receiving two prior payments, the majority of people received $1,400 in stimulus checks to help them get through the COVID-19 pandemic.

 

Families have also benefited from the federal Child Tax Credit, which has increased. Between July and December 2021, money was provided directly to families – up to $350 per child – in the form of checks. If combined with the second half of the tax credit earned after taxes are filed this year, families who qualify will receive up to $3,600 per child.

According to President Biden, the payments should resume in 2022 for families who had previously received them. Their inclusion was part of his big Build Back Better strategy. Unfortunately for many who were reliant on such payments, the Build Back Better initiative was scrapped altogether.

However, there is still some hope.

Senator Mitt Romney of Utah, a Republican, is suggesting something that is strikingly similar to the monthly payments included in the American Rescue Plan. The Family Security Act is the name of his initiative.

A bill introduced by Senator John McCain would provide monthly payments of up to $350 for each child under the age of 18, according to his website. Additionally, in order to assist families who are intending to become parents, the Family Security Act would deliver those payments to families four months before the anticipated due date of the payment.

The senator, on the other hand, is proposing a significant shift. The Family Security Act is planned to include a mandate to perform community service. Sen. Romney spoke with Michael R. Strain, Director of Economic Policy Studies at the American Enterprise Institute, on his plan and the requirement to perform community service.

When asked about the idea, Sen. Romney stated, “The plan that I presented does not punish a couple if one of them chooses to stay at home and take care of their children while the other decides to work.”

But I am completely open to the need that many people have voiced to say, “Look, there has to be some link with work,” and I am willing to listen. Initially, the senator’s plan did not contain a mandate to perform community service. According to reports, the senator is shifting his position in order to obtain more votes.

In addition, the senator stated that he was open to making revisions to the proposed proposal. During his confirmation hearing, Sen. Romney expressed interest in lowering the number of years a child would be eligible for the benefit. He also stated that he was open to the idea of lowering the income requirement.

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