Families eligible for the child tax credit received what could be their final payments Wednesday. The payments come as the prospects of extending the credit, which is currently set to expire at the end of the year, look bleak.
Since July, about 36 million families have gotten monthly payments of up to $300 for every kid under six and $250 for each kid ages 6 to 17. The credit was a part of the American Rescue Plan which was passed earlier this year.
President Joe Biden included an extension to child tax credit payments in the Build Back Better Act. However, the credit has been a sticking point for Sen. Joe Manchin (D-WV), whose support is needed to pass the bill in the Senate. Sen. Manchin has called the credit too generous.
President Biden spoke to Sen. Manchin about the bill over the phone Monday. According to a person familiar with the talks who spoke to the Associated Press on the condition of anonymity Wednesday, negotiations between the two are going poorly. Manchin himself has not answered reporters’ questions about his stance in the talks. Meanwhile, the White House painted a much brighter picture of the negotiations Wednesday.
“The President has had two great conversations with [Manchin] this week that have been productive,” White House deputy press secretary Karine Jean-Pierre said in a press gaggle aboard Air Force One en route to tour tornado damage in Kentucky. “We believe the senator wants what we want, which is to deliver for the American people in a way that it has a real effect, especially during this time of COVID and getting the economy back.”
The White House and Sen. Chuck Schumer have set a deadline to pass the Build Back Better Act by Christmas. The IRS has told lawmakers they have until Dec. 28 to pass the bill if they want child tax credit payments for January to go out on time.
