Stimulus Money 2023, Child Tax Credit Funds: Will Parents Get More Financial Aid This Year?

There is a chance that parents can continue enjoying stimulus aid in 2023.

As a result of the American Rescue Plan Act, parents were able to receive stimulus money to help them from fighting off the financial struggles that COVID-19 had brought, The Ascent reported.

The distribution of relief funds by the Child Tax Credit ended in 2021.

But there could be good news parents can look forward to for this new year as lawmakers could take action to enable more Child Tax Credit funds to be available to American parents and families.

What are these stimulus funds?

A stimulus payment worth $1,400 under the American Rescue Plan Act was provided to eligible adults and dependents regardless of parental status. Yet, the expanded Child Tax Credit provided more monetary help to some families.

Parents with children below six years old were provided $3,600 worth of tax credits per child, with the entire amount fully refundable. On the other hand, parents with older kids also received fully refundable tax credits worth $3,000 per child.

These tax credits became more useful as they were paid out every month starting in June instead of being available only after filing taxes. Parents received payments from June to December through their bank accounts. They did not have to wait for the tax-filing season or see the funds disappear because of their tax bills.

The credit did not only create a significant reduction in child poverty rates in 2021 but also gave parents their much-needed "breathing room."

The stimulus and credit grants ended in 2022.

Read Also: State Stimulus Checks Arriving to Americans in October 2022: Which States Are Sending Payments?

The possibility of it coming back in 2023

Many Democrats continued prioritizing the credit last year. However, the Biden administration was unsuccessful in passing a bill to allow parents to have more stimulus money. It was reported that several conservative lawmakers on the left were not on board with making the expanded credit part of the legislation. 

Now that the Republicans have taken control of the House of Representatives, the possibility of these stimulus funds returning is bleaker compared to when Democrats were in control of both houses of Congress in the past years.

But here's the good news - several prominent Republicans have expressed support for the expanded child tax credit, with Sen. Mitt Romney, R-Utah, "quietly" pushing a "Republican-friendly version" of the credit that Democrats are interested in but with few changes in requirements.

According to NBC News, Romney's version of extra monthly payments would "add stringent work requirements, slash programs that aid vulnerable Americans and make significant changes to the tax code."

But the changes would seem to be of a minimal issue if the new version would get a bipartisan consensus as having the stimulus money back would ultimately put parents and families in a win-win situation.

With potential support and compromise from Republicans and Democrats, the possibility for an expanded Child Tax Credit can be a priority issue this 2023.

Related Article: COVID Pandemic-era Stimulus Checks Rewired Americans in How They See Their Money