President Joe Biden advocated for an extension of the expanded Child Tax Credit (CTC) and a reduction in child care fees during his State of the Union address on March 1.
Biden described reducing the cost of child care as one of the elements of his plan to fight inflation while discussing the country’s economic and financial situation. The expanded CLC also expired in December 2021, prompting some Senate Democrats to write a letter to the president urging him to reinstate them through the Build Back Better Act.
“Middle-class and working families should not have to pay more than 7% of their income for childcare,” Biden said during his speech. Soaring childcare costs have caused families to hold side gigs, borrow money from family, and even move house, according to a study by The Penny Hoarder.
Families in need of extra cash and trying to reduce their monthly expenses in the face of rising inflation might consider taking out a personal loan at a lower interest rate. Head over to Credible to compare rates and lenders and find a schedule that’s right for you.
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Biden calls for cutting child care costs: ‘Cut costs in half for most families’
During his speech to Congress, Biden said he wanted to change the standard of living for the working class by reducing child care costs, adding that many American families are paying up to $14,000 a year per month. child.
“My plan will cut costs in half for most families and help parents, including millions of women, who have left the workforce during the pandemic because they couldn’t afford child care. , to be able to return to work,” the president said. .
The Penny Hoarder study also noted that the majority of parents (84%) said they felt overwhelmed by the cost of childcare, and 44% of respondents said they paid $1,000 or more per month. in expenses. Biden added that his cost-cutting plan will include home, long-term care and affordable housing.
“Middle-class and working families shouldn’t have to shell out more than 7% of their income to care for young children,” he said.
If you’re looking to reduce your monthly expenses and pay off your debts in the face of rising childcare costs, you might consider a debt consolidation loan. Visit Credible to compare multiple lenders at once and choose the one with the best interest rate for you.
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Democrats call for extension of child tax credit payments
Senate Democrats have urged Biden to reinstate monthly Child Tax Credit payments, which they say will cut the child poverty rate by 40%. Those expanded payments expired in December 2021, and lawmakers noted in their January letter, citing U.S. Census Bureau data, that nearly all families receiving the payments used them for necessities like housing and groceries.
“CTC’s monthly payments, which averaged $444 for participating families in December, have helped families cope with pandemic-induced price increases — and will continue to do so as families receive the second half of their expanded tax credit this spring,” the letter reads. .
The expanded payments were made by the Internal Revenue Service in the form of monthly installments of $250 per eligible child ages 6 to 17 and $300 per child for those under six. The remainder of the full credit from the expanded child tax credit payments was to be distributed to eligible taxpayers with the 2022 tax return.
The total CTC has increased from $2,000 to $3,000 for each child ages 6 to 17 and $3,600 per child under age 6 for the 2021 tax year.
Families who have been impacted by the halt to expanded CTC payments might consider consolidating high-interest credit card debt into a personal loan as a way to save money. Contact Credible to speak with a loan expert and get all your questions answered.
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