A Brooklyn Starbucks supervisor who aspires to be a doctor will pay the rent and build savings for her son. Across the country, a San Francisco area mother who attends college is getting back to class herself now that she can more easily afford after-school care for her youngest child. Those are some of the ways about 39 million U.S. households could benefit once they start receiving monthly federal checks today as part of a massive expansion of the child tax credit, Reuters reported. The Center on Poverty and Social Policy at Columbia University estimates that the expansion can reduce the U.S. child poverty rate by up to 45%. The approach is notable both for its wide reach — the checks issued this week will reach nearly 90% of U.S. children, according to Internal Revenue Service estimates — and for distributing half the money monthly instead of in one lump at tax time. The program, which is not limited to low-income families, is being likened to a universal basic income for children. Single parents earning up to $75,000 and couples making up to $150,000 can receive the full credit. Under changes made by the American Rescue Plan passed in March, families will receive up to $3,600 for every child under age 6 and $3,000 for those ages 6 to 17, up from $2,000 per child. A minimum income requirement was removed and the credit was made fully refundable, making it more accessible to parents who don't work and those with low tax bills.
