Expiring Child Tax Credits Push Democrats Into Race Against Time

Lawmakers are no strangers to tight deadlines, but the expiration of the expanded child tax credit has particularly focused the minds of Democrats worried about the impact on millions of Americans if the federal program is not renewed.

As if the race to get President Joe Biden's administration's $1.75 trillion Build Back Better Act over the line was not fraught enough, also at stake is extending the payments to parents who will receive their sixth and final instalment of the credit on December 15.

The Biden administration's social care plan would extend the already expanded child tax credit, which ends at the end of 2021, for another year.

However, the clock is ticking.

The Internal Revenue Service (IRS) has said it needs to know by December 28 on the future of the program, otherwise it would be unlikely to be ready to make the next due payment on January 15, The Washington Post reported.

"It cannot be undone," Rep. Rosa DeLauro (D-CT), who chairs the House Appropriations Committee told the newspaper, referring to the payments, as "we've seen such success in five months."

Senator Ron Wyden (D-OR) told the paper that it would not be acceptable for senior citizens to miss out on social security payments. "Similarly it is not acceptable for vulnerable children and families to miss out on a child tax credit payment."

Launched with much fanfare in July as part of the America Rescue Plan, an estimated 35 million families have benefited.

In a sliding scale of payments for those earning an upper annual income limit of $150,000, eligible parents could get up to $300 for each child under six and $250 for each child between 6 and 17 years old.

That has meant up to $1,800 per child has been paid out to some parents since July and they can claim the other half of the credit as a lump sum on taxes in 2022.

A survey by the Center for Law and Social Policy found that the money usually went on essentials such as food and bills. The Census Bureau found that it meant fewer households experiencing food insufficiency.

At a time when Biden faced criticism for not getting his immense social spending package passed, the credit was a rare good news story for the Democrats hit by plummeting polling numbers for the president and a prominent defeat in Virginia's gubernatorial election.

Biden's social spending bill (which would prevent a lapse in the child tax credit payments) has already passed in the House, but faces hurdles in the Senate.

The Senate parliamentarian is continuing to ensure that all parts of the bill have an effect on the federal budget so that it can be passed via the reconciliation process and thus without the need for GOP support.

But all 50 Senate Democrats still need to back it and Senator Joe Manchin (D-WV) has declined to give his support for the bill and has doubted the wisdom of renewing the child tax credit for a year.

Momentum is building among Democrats to get the legislation passed. This week, a group of 95 House Democrats has urged the upper House to back Biden's spending bill before the end of the year.

Rep. Suzan DelBene, who chairs the New Democrat Coalition, said in a statement, "now it is time for the Senate to act before the expanded Child Tax Credit payments expire."

"American families cannot afford to lose this critical middle class tax cut which has cut child poverty in half and helped millions of families afford childcare, pay their bills, and put food on the table," she added.

Newsweek has contacted the White House for comment.