Biden says child tax credit a ‘giant step’ to counter poverty

The Child Tax Credit is being likened to a universal basic income for children that helps people meet monthly expenses.

Some 35 million American families have started receiving their first monthly payout from the US government in an expanded income-support programme that President Joe Biden said on Thursday could help end child poverty. Under the Child Tax Credit programme that was broadened under Biden’s COVID-19 stimulus, eligible families collect an initial monthly payment of up to $300 for each child under six years old and up to $250 for each older child. Payouts made to families, covering nearly 60 million eligible children, totalled about $15bn for July. The payments are automatic for many US taxpayers, while others need to sign up.