Stimulus Update: President Biden Calls for These Stimulus Payments to Start Again

The president wants to start providing stimulus money to parents again -- but will it happen?

President Joe Biden recently unveiled a proposed new budget calling for $6.8 trillion in government spending. The budget included many provisions that would directly impact the finances of millions of Americans.

One of those provisions would restore a type of stimulus relief that was first offered in the American Rescue Plan Act. That was the COVID-19 relief bill Biden signed into law in March 2021, shortly after taking office.

Here's the type of stimulus relief the president has urged Congress to restart with his budget proposal.

Biden wants to bring this stimulus money back

The American Rescue Plan Act is best known for the provisions of the bill that resulted in most Americans receiving a $1,400 deposit into their bank accounts. But it also provided a more targeted form of financial help in addition to this stimulus check. Specifically, it offered extra money to parents.

The American Rescue Plan Act expanded an existing Child Tax Credit and altered the way it was delivered. Before the Act, the Child Tax Credit provided up to $2,000 per child, only $1,400 of which was refundable (which means you couldn't get the entire $2,000 unless you owed at least $2,000 in taxes). You also had to wait until you filed your taxes to get any of the money.

The expanded Child Tax Credit authorized by the stimulus bill increased the credit so it provided $3,600 per child under age 6, and $3,000 for kids ages 6 to 17. It also arranged for funds to be delivered on a monthly basis, at a rate of $250 or $300 per month for the last six months of the year. That way, parents would get help throughout the year as needed instead of having to wait until tax time.

This expansion was only in effect for 2021. But, in Biden's budget proposal, he would reinstate this expanded credit for an additional three years. This, along with a proposal to make the credit fully refundable, would result in an extra $400 billion in money going out to parents.

Will the president be able to restore this stimulus payment?

Although Biden has made clear he wants more stimulus money going to parents, his budget is only a proposal. And it's not likely that the Republican House of Representatives will accept his suggestions for how to handle taxes and spending in the coming years.

Still, while there are many aspects of the budget that Republicans are likely to reject outright, some lawmakers on the right have also voiced support for an expanded Child Tax Credit. So it is possible there could be a compromise that does give parents some extra help. It will be important to watch the budget negotiations over the coming weeks to find out if this could turn into a reality.