Executive Summary: The Biden Administration’s American Rescue Plan Act (ARP), passed in early 2021, is designed to respond to the immediate economic needs of the millions of Americans who have been impacted by the economic fallout of the COVID-19 pandemic. This report considers one aspect of the ARP: the expansion of the Child Tax Credit (CTC), which provides a temporary income boost to parents with dependent age children (under 18 years old). The expanded CTC is also the first time the federal government has opted to deliver a portion of the tax credit via monthly payments instead of delivering it all in a lump sum annually.
UNIVERSITY OF ILLINOIS URBANA-CHAMPAIGN