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House bill would make the $3,000 child tax credit permanent


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A House bill proposed Tuesday aims to make recent enhancements to the child tax credit permanent.

Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Committee and gatekeeper of new tax legislation, issued a bill that would codify changes made by the recent $1.9 trillion American Rescue Plan.

The Covid relief measure, which President Joe Biden signed March 11, raised the maximum child tax credit amount, made it fully refundable and allowed families to get the tax break in monthly installments.

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The policies largely seek to offer more income support for lower-earning households and cut child poverty. Without congressional action, they would only apply to the 2021 tax year.

Neal’s Building an Economy for Families Act would make the enhancements a permanent fixture of the tax code.

However, Biden is expected this week to propose an extension through 2025 instead of making the changes permanent.

Rep. Richard Neal, D-Mass. and chairman of the House Ways and Means Committee

Andrew Harrer/Bloomberg via Getty Images

It would be part of a broader investment in so-called “human capital” playing out amid a national debate on infrastructure spending.

“For our economy to fully recover from this pandemic, we must finally acknowledge that workers have families, and caregiving responsibilities are real,” Neal said.

Neal’s bill would also offer universal paid family and medical leave, guarantee access to child care and keep recent changes made to other tax breaks like the earned income and child and dependent care credits.

Changes to the child tax credit



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