Congressional Democrats are plowing ahead with passing a nearly $2 trillion coronavirus relief bill that could provide a substantial financial boost to some American families.
The aid package includes a fresh round of stimulus checks worth $1,400 for individuals earning less than $75,000, and a major expansion of the long-standing Child Tax Credit. Between those two provisions, some American families could receive as much as $14,000, according to Ed Mills, a Washington policy analyst at Raymond James.
Under legislation the House is poised to pass Friday evening, most American parents would receive $3,000 a year for every child ages 6 to 17 and $3,600 a year for every child under age 6. Families are normally entitled to up to $2,000 annually in refundable tax credits per child, an amount that was doubled by Republicans in 2017 with the passage of the Tax Cuts and Jobs Act.
The fully promised $1,400 cash payment would go to any individual earning $75,000 (or couples earning less than $150,000), as well as their dependents. The checks would phase out faster than previous rounds, cutting off individuals who earn more than $100,000 and couples earning more than $200,000.
In an analysis published this week, Mills laid out how a family could receive up to $14,000: A family of four earning less than $150,000 will receive $5,600 -- $1,400 per person -- under the proposed legislation, on top of the $2,400 they received through the relief bill that Congress passed in December. That would bring their total stimulus payments to $8,000, Mills said.
That family could then receive between $6,000 and $7,200 under the revamped Child Tax Credit, which would be paid out in monthly sums beginning in July.
"This support from the federal government is not offset by any tax increases, as it has the goal of stimulating the economy," Mills wrote. "We are in the middle of a new fiscal experiment, aimed at targeting support toward the bottom portion of the K-shaped recovery."