Support for Congress is strong among Democrats for extending a popular stimulus package through next year despite a tug-of-war over Biden’s draft budget.

House Speaker Nancy Pelosi is likely to move forward this week to finalize a draft of President Joe Biden’s $ 1.75 trillion spending plan.

It is still unclear what the final version will look like.

But here’s what we know so far about who might be eligible for the new round of stimulus funding that you can spend or use on bare minimums pay your debts.

Extended childcare tax credit extension

The current budget package includes “the most transformative investment in children and care in generations,” according to a White House statement on October 28.

One of its trademarks is to enable more than 35 million families to achieve substantial tax cuts by expanding the extended child allowance.

The monthly “Family Business Checks” from the extended child allowance expire at the end of this year. Many parents plead for continued support.

“As mothers, we say loudly and clearly: We need help,” says a Letter to the President, signed by mothers in all 50 states. “Many mothers want to work right now, but have either been laid off or cannot go back to work due to demands from home. It is time for our government to back us up. “

Some Democratic leaders felt the pandemic aid should become permanent, and Biden wanted the topped up credit to last until at least 2025. However, the White House decided to extend it for a year to increase the chances of the entire budget being passed.

The Republican opposition is led by Senate minority leader Mitch McConnell, who in a speech described the proposals to continue the expanded child loan payments as “new monthly social security contributions.”

What’s next year?

If you want an idea of ​​what another year of tax credit might look like, here is the Democrats’ latest draft budget. However, keep in mind that it could change.

According to the October 28 White House release, Biden’s plan, if approved, would make monthly payments to the parents of nearly 90% of American children in 2022.

The story goes on

“This historic tax cut will help cover food, shelter, health care and transportation costs and continue the largest year-long child poverty reduction in history,” said the White House.

Families would receive up to $ 3,600 – $ 300 per month for each child under the age of 6 and $ 250 per month for each child between the ages of 6 and 17.

In a recent open letter to Congress, 448 economists say research shows that continuation of the expanded child tax credit can greatly improve the lives of children in America and reduce child poverty.

Earlier this year, when schools were closed, many families used the payments to build their savings and pay off debts. After the classrooms reopened, some parents used the funds to pay for school supplies and childcare for the children, according to a new study by the US Census Bureau.

Here’s how to improve your family finances now

You don’t have to put your financial destiny in the hands of Congress. Here are just a few steps you can take now to give your family more financial security.

• Reduce your insurance bills. Getting stuck at home has its perks. Since many of us drive less during the pandemic, auto insurances have given discounts. Don’t you want to bend Simple – Shop around for better policies..

• Reduce the cost of your debt. It’s hard to get ahead when you’re stuck with high-interest debt, like credit cards are. Consider adding these credits to a single, Low Interest Debt Consolidation Loan. This leaves you with just one invoice to work on and potentially getting you out of debt years sooner.

• Get a better mortgage rate. Interest rates are currently historically low; if you refinance you could save hundreds every month and thousands over the life of your loan.

• Turn your pennies into a portfolio. Even if you don’t have a lot of money, you can still get returns from today’s record breaking stock market. A popular app will help you with this Invest your “change” from daily shopping into a diversified portfolio.

This article is for information only and is not intended as advice. It is provided without any guarantee.