PORTSMOUTH, Va. (WAVY) – Financial relief for parents during the coronavirus pandemic has come to an end. This weekend, millions of parents across the country won’t see a bump in their bank account, as Congress failed to extend child tax credits.
This means, for the first time since July, parents will no longer receive their monthly payments.
Nonprofit No Kid Hungry Virginia says more than 1.5 million kids in the commonwealth will be impacted as the credit ends. They’re calling for Congress to pass the Build Back Better Act, which includes an expansion, but there’s not much movement right now in Washington.
Since July, eligible families have received monthly payments of up to $300 as part of President Joe Biden’s $1.9 trillion coronavirus relief bill. More than 30 million families have been getting these payments since July, according to the IRS. However, the credit was only for 2021.
Democrats want to extend the payments as part of their spending bill, the Build Back Better Act. However, the legislation faces opposition from Republicans, as well as West Virginia Democratic Sen. Joe Manchin, who says the price tag of the bill is too high and worries about discouraging people from working.
No Kid Hungry Virginia, a nonprofit that works to make sure all kids have access to food, worries that ending the credits will lead to increased rates of food insecurity in our communities.
“The child tax credit helped reduce child poverty and hunger,” said No Kid Hungry Virginia Director Sarah Steely. “As the cost of living rises, Virginia families are depending on these payments to purchase basic necessities like food and housing. We know missed payments could mean missed meals and will impact our communities for decades to come.”
According to a survey by the census bureau, nearly one-third of people used the credit for school expenses, while about one-quarter used it for child care.
There will be a more modest child tax credit in 2022. It will be cut down and will come once people file their taxes.