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White House

Monthly payment to families from child tax credit increase in American Families Plan start in July

The Joe Biden administration said Monday it will begin disbursing the monthly payments to families as a result of the child tax credit increase authorized in the recently enacted the American Families Plan.

The money will starting July 15 go to low-and-moderate-income families – $250 a month for each child over 6 or $300 for each child under 6.

“The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children,” said Biden, according to The Hill. “With today’s announcement, about 90% of families with children will get this new tax relief automatically.”

Roughly 39 million households, covering 88% of children in the U.S., will receive the monthly payments. The payments will be calculated based on the taxpayer’s 2020 tax returns.

The $1.9 trillion American Families Plan was in March passed by Congress and signed into law. The packages extended the tax credit, increased the number of eligible families to receive aid and provided half of the funds for the monthly payments through December.


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