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Child benefits will be paid monthly for the first time in the United States, a seismic shift for a country with some of the highest rates of child poverty in the developed world.Monthly payments of up to $300 (£216) per child will begin on July 15 and will run until the end of the year.Some Democrats have praised the newly-expanded tax credit. The bill increased the existing benefit for the 2021 tax year to a maximum of $3,600 per child under the age of six, or $3,000 for those up to the age of 17.Under the expanded scheme, half of the credit will be paid directly to parents in monthly instalments of up to $3. (IRS). In some cases, cheques or debit cards may be issued.The remaining amount can be claimed on 2021 tax returns, though families can choose to opt out of the monthly payments and receive a lump sum later instead.The White House has stated that about 90% of families will automatically receive the benefit, though eligibility and the amount paid out is based on income. A third of youngsters, who are disproportionately poor, black, or Hispanic, did not obtain the full benefit, according to past research. The vast majority were ineligible because their families earned less than $2,500 per year. “There’s just a lot of kids who don’t get the credit,” says Katherine Michelmore, a professor of public administration and international affairs at Syracuse University’s Maxwell School who has studied the issue. Despite this, critics have pointed out that the changes are expected to cost the government more than $110 billion this year. Experts have also warned that increased consumer spending could lead to higher retail prices. “Given the massive amount of prior stimulus, coupled with an opening economy, I do expect a large portion of this to be spent,” says C. “It can help pay the expense of children’s requirements and ensure that some of these expenditures are smoothed from month to month, but there are many other elements of the problem that the US needs to address.” US economyUnited StatesChild povertyUS politics/nRead More

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