The American Rescue Plan Expanded Child Tax Credit is Projected to Cut Child Poverty in Half 

LANSING – U.S. Senator Debbie Stabenow (D-MI) and Representative Elissa Slotkin (MI-08) joined with child advocates to highlight tax cuts for working families included in the American Rescue Plan. Senator Stabenow and Representative Slotkin were leaders in the effort to include a historic expansion of the Child Tax Credit in the American Rescue Plan. Combined with other parts of the Rescue Plan, it is projected to cut child poverty in the United States by half. They were joined by Lansing Mayor Andy Shore, Joe Garcia, the Executive Director of Cristo Rey Community Center, and Matt Gillard, the Executive Director of Michigan’s Children.

Michigan families will begin to receive monthly Child Tax Credit payments on July 15th. Monthly payments will be up to $250 for each child 6 to 17 years old and $300 for each child under age 6. In total, most Michigan families will receive $3,000 for each child ages 6 to 17 years old and $3,600 for each child under age 6. Most families will begin receiving monthly Child Tax Credit payments without any further action required. If families have not filed taxes for 2019 or 2020 or did not previously claim Economic Impact Payments, they must sign up to receive monthly Child Tax Credit payments through a new online IRS tool at www.childtaxcredit.gov.

“This pandemic has been tough for everyone. But families with children have been especially hard hit. This tax cut helps those who need it most to have additional resources to care for their children. It will improve the lives of millions of Michigan children, help moms and dads pay for child care and other essentials and allow them to successfully return to work. This is a very important part of the American Rescue Plan,” said Senator Stabenow. 

“The Child Tax Credit is going to be transformational for working families across Michigan’s 8th District. Parents have been hit hard over the last year, and the money they’ll start receiving next week from this tax cut can help cover expenses like child care, which has become an even bigger hurdle to getting people, and especially women, into the workforce. That’s something we all want as we continue our recovery from the pandemic, so I’m urging parents in Mid-Michigan to check their eligibility online and file their taxes if they haven’t yet to make sure they can benefit,” said Representative Slotkin. 

“As our city recovers from the COVID-19 pandemic, it’s critical that all of the resources made available by the federal government reach eligible Lansing households. The Child Tax Credit is one of the most significant opportunities available to help families,” said Mayor Schor. “Here in Lansing, we have resources available through the Volunteer Income Tax Assistance (VITA) program of Capital Area United Way, and free financial counseling available at Cristo Rey Community Center’s Financial Empowerment Center, to help families navigate submitting their information.”  

“The Expanded Child Tax Credit provides a needed boost to families across the country! The monthly disbursements empower our residents to plan the use of the funds thoughtfully,”  said Joe Garcia, Executive Director of Cristo Rey Community Center. 

“Raising a family has never been more expensive, and worrisome for Michigan parents struggling to go to work and cover the high cost of child care. Finding and paying for child care, for example, has already sent nearly 140,000 women out of the Michigan workforce during the pandemic. We must turn things around. Making the federal child care tax credit a permanent fixture in our nation’s tax code is a necessary step to help parents with their economic challenges.  For Michigan's recovery from the pandemic, for our hard-working families, our government can’t afford not to help,” said Matt Gillard, President and CEO of Michigan’s Children. 

In Michigan, it is estimated that the Child Tax Credit expansion will benefit more than 1.9 million children under age 18. For more information or to sign up for benefits, visit www.childtaxcredit.gov.  

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