Biden signs $1.9 trillion American Rescue Plan expanded child tax credit cuts child poverty

The expanded child tax credit created by the American Rescue Plan, which increased the credit from $2,000 to $3,600 per child under 6 and $3,000 per child 6-17, and made it fully refundable and payable monthly, reduces the U.S. child poverty rate from 15% to 12% within months of implementation, lifting approximately 3 million children out of poverty. It is the largest reduction in child poverty in U.S. history. Monthly payments of $250-$300 per child begin going directly to families in July 2021. The credit expires at year-end when Manchin kills Build Back Better, and child poverty returns to pre-pandemic levels by early 2022.