On Friday, the White House appeared to be confident of reaching a binding agreement on the rest of President Biden’s Build Back Better plan. Still, it seems that the president will have to make some concessions to keep his divided caucus together.
Biden met with House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer to discuss the social security net bill. However, it’s expected that a one-year extension for the Child Tax Credit will be introduced, well short of Biden’s hopes for the program to continue until 2025.
“We’re getting closer; we’re into the nitty-gritty details,” said White House press secretary Jen Psaki during a Friday briefing. “There is agreement on some key societal investments.”
Psaki added, “The alternative is nothing. So his objective is to continue to press forward to bring the parties together to get a historic package done.”
Read More: Child Tax Credit Payments Now Being Received by Families – IRS
One year extension for the Child Tax Credit
The Child Tax Credit was reworked entirely under the American Rescue Plan, signed into law in March. For the first time, tax relief was given as a more substantial monthly payment than a one-time payment with no earnings condition, which had previously excluded the poorest people.
The program’s expansion resulted in an additional 27 million families receiving benefits. According to a study published by the Center on Poverty and Social Poverty at Columbia University, the first two checks alone lifted 3.5 million children out of poverty.
However, it appears that the increased initiative will only be extended for another year to assist Biden cut down on the overall cost of the large reconciliation package necessary to pass the legislation.
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Manchin insists on a work requirement
Some Democrats have criticized the cost of the Child Tax Credit program. In contrast, one important centrist has suggested tightening eligibility rules to reduce the number of people who can obtain payment.
Sen. Joe Manchin is one of just two Democrats in the chamber representing a red state, West Virginia, and has a narrow path to reelection in 2020. So Biden desperately needs Manchin’s vote if he will have hope of getting anything near the breadth of legislation that he wants.
Manchin has railed against the current Child Tax Credit system, which he claims lacks “any work requirement.”
When asked about his views on immigration during an interview with CNN in September, he remarked, “Don’t you think that if we’re going to assist the children, people should at least try?”
Manchin has yet to provide specifics on how he would address the issue. However, it seems plausible that a return of the credit’s earnings requirement, which the American Rescue Plan temporarily lifted in March, could be enough to persuade him.
