The second monthly payment of child tax credits reached the households of nearly 61 million children, the Treasury Department said. That is a 2.7% increase from July, indicating that more people are being added to the program than are leaving through taxpayers’ decisions to opt out of the regular payments.
Friday’s payments of up to $300 per child totaled $15.4 billion, and they come as Democrats try to build political momentum to extend the expanded tax credit beyond its scheduled Dec. 31 expiration.
The March coronavirus-relief law expanded the credit in several ways. It raised the amount from $2,000 per child to $3,000 for children ages six to 17 and to $3,600 for those under six. Families with little or no income can now get the full amounts. Previously, those households were limited to getting $1,400 of the $2,000 credit. And it is delivered in the middle of every month instead of as part of the annual tax refund, creating something approaching a universal child allowance.
A Census Bureau survey released this week found that households with children reported having an easier time paying for food after the July payments were delivered.
Treasury Department officials also have been trying to make sure that eligible households sign up. That is a particular challenge for low-income families who don’t normally file tax returns.
