Millions of Americans could receive up to $350 in monthly payments under federal plan – see who’s eligible

MONTHLY child tax credit payments could be coming back as Congressional lawmakers have revealed a plan.

In 2021, the maximum child tax credit benefit was $3,600 thanks to a boost under American Rescue Act.

However, that is set to return to $2,000 for 2022 as Congress has failed to extend it.

And not only that but 3.7million children have been thrown back into poverty, according to a study from the Columbia University.

But now Republican Senators Mitt Romney, Richard Burr and Steve Daines have sponsored a plan that would give families up to $350 per month, or $4,200 per year.

This would be higher than the maximum $300 benefit under last year’s temporary measure.

“Despite being the bedrock of our country, there’s perhaps never been a more challenging time than today to raise a family, Mr Romney said.

“We must do better to help families meet the challenges they face as they take on the most important work any of us will ever do—raising our society’s children.”

However, there is one catch to the child tax credit that would come as a surprise to many families that hasn't been the case in the past.

Who is eligible?

The plan looks similar to the one that Mr Romney pitched earlier this year.

The updated version, however, has more specifics about the work requirement.

Under the Family Security Act 2.0, families must have earned at least $10,000 in the previous year to get the full child tax credit benefit.

If you earn less than that, you'll get a benefit “proportional to earnings.”

“For example, a family earning $5,000 with a 4-year-old would receive 50% of their $4,200 benefit because they earned 50% of the $10,000 earnings target," the proposal reads.

Eligible families with children under six would be eligible for $350 for each kid.

Those with kids between six and 17 would get $250 per month or $3,000 per year.

Meanwhile, the earnings cap will be $200,000 for single filers and $400,000 for couples.

Above those thresholds, the benefits are slashed by $50 for every $1,000.

While it’s unclear how many exactly would be eligible, data from research firm Statista shows that more than 112million households make less than $200,000.

Will it pass?

While three Republicans back the measure, it’s unclear if it will pass.

The work requirement thought, in particular, has caused some unease amongst Congressional Democrats.

“As I’ve said in the past, work requirements don’t work, as study after study has shown,” Senator Michael Bennet, a Democrat of Colorado told NBC News in February.

“We shouldn’t punish children simply because their families are struggling to find work, particularly during a pandemic.”

But one-party member does not agree with that – and that’s Senator Joe Manchin, who fancies himself as a so-called “conservative Democrat.”

In fact, the West Virginia Senator killed popular policies in President Joe Biden’s build-back better agenda including an extension of the $3,600 child tax credit.

His rejection of the boosted credit was because it did not include a work mandate.

But it’s unclear if other Democrats including Mr Manchin will sign onto the new child tax credit plan.

For more on the child tax credit, see two big changes that are set to come for 2022.

Also, applications for Connecticut’s version of the child tax credit worth up to $750 have opened.