SAN DIEGO COUNTY, Calif. — A key component of that nearly $2 trillion federal stimulus plan signed by President Biden Thursday will give thousands more dollars to most American families with kids. Economists believe this new credit will help lift as many as four million children out of poverty.
This new child tax credit marks an increase from $2,000 per child under the previous stimulus bill. How long this assistance will last has some parents concerned.
"This is a big help for every working class person," said Imperial Beach resident Patricia Mendoza, a single mother of two who is struggling to make ends meet after she lost her job at the start of the pandemic.
"My $53 a week for unemployment is not cutting it, and I know a lot of people in my same situation," she added.
Mendoza said that she is grateful for this week's passage of the new COVID relief package, specifically the new child tax credit.
"Something heavy has been lifted from my shoulders," said Mendoza, "a little bit less stress."
Under the legislation, individuals making up to $75,000 and couples making $150,000 will qualify, receiving $3600 for each child under age six and up to $3000 for children ages six to 17.
"It was such great news to see," said Arnulfo Manriquez, president of the Metropolitan Area Committee on Anti-poverty (MAAC), which is headquartered in Chula Vista.
He sees this credit as an essential tool in helping thousands of San Diego families now struggling at or below the federal poverty level, now $21,700 for a family of three.
"A $3,600 boost is going to help catch them up in a variety of ways," Manriquez told News 8, helping to cover essentials like food and clothing, as well as child care and housing.
This new child tax credit does *not* require that parents earn a minimum income or even have a job.
"It's the biggest single action toward reducing poverty that's been taken in a long time," said Elaine Maag of the Urban Institute. She believes this credit could help lift an estimated four million children nationwide out of poverty.
However, this credit for the time being, lasts only one year.
"What happens after that? It's unclear," Maag added. "We do have a history of it being very difficult to take away benefits in the tax system once we have them there."
Manriquez says the need for this assistance will persist far longer.
"The recovery from this is going to take years," he said.
Patricia Mendoza said that she hopes this help could even be put toward savings for her kids.
"You never know what tomorrow may bring," she added. "Today it's me, tomorrow it could be you. So hold that money tight. Don't spend it all!"
Democrats are expected to push to make the credit permanent.
Under the current legislation, payments will be made monthly, beginning this summer.