Major COVID stimulus payments in line for 2022 extension — don’t miss your free cash

Major COVID stimulus payments in line for 2022 extension — don’t miss your free cash
Major COVID stimulus payments in line for 2022 extension — don’t miss your free cash

Congressional support is strong among Democrats to extend a popular stimulus payments program through next year despite a tug of war over Biden’s budget bill.

House Speaker Nancy Pelosi will likely push ahead this week to finalize a draft of President Joe Biden’s $1.75 trillion spending plan.

It’s anyone’s guess, at this time, what the final version will look like.

But here’s what we know so far about who could be eligible for the new round of stimulus funding that you could spend on essentials or use to pay down your debt.

Extending the enhanced child care tax credit

Father with childFather with child
Evgeny Atamanenko / Shutterstock

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

One of its hallmarks is to give more than 35 million families a major tax cut by extending the expanded child tax credit.

The monthly “family stimulus checks” from the expanded child tax credit run out at the end of this year. Many parents are pleading for the support to continue.

“As mothers, we say loud and clear: we need help,” says a letter to the president signed by mothers in all 50 states. “Many moms want to be at work right now, but have either been laid off or can’t return to work because of demands at home. It is time for our government to have our backs.”

Some Democratic leaders thought the pandemic aid should become permanent, and Biden wanted the beefed-up credit to last at least through 2025. Yet, the White House settled for a one-year extension to boost the odds of getting the entire budget passed.

Republican opposition is led by Senate Minority Leader Mitch McConnell, who, in a floor speech, dubbed suggestions to continue the expanded child credit payments as “new monthly welfare deposits.”

What’s in store for next year?

Close-up Of A Businesswoman Making Agenda On Personal Organizer At WorkplaceClose-up Of A Businesswoman Making Agenda On Personal Organizer At Workplace
Andrey_Popov / Shutterstock

If you want an idea of what another year of the tax credit could look like, here’s what is in the Democrats’ current budget bill. Remember, though, it could change.

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

“This historic tax cut will help cover the cost of food, housing, health care and transportation, and will continue the largest one-year reduction in child poverty in history,” the White House says.

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

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

Earlier this year, when schools remained closed, many families used the payments to build up their savings and pay down debt. After classrooms reopened, some parents used the funds to pay for children’s school supplies and child care, according to a new study by the U.S. Census Bureau.

How to improve your family finances now

Mom and Dad and daughter at home, the number of coinsMom and Dad and daughter at home, the number of coins
JodieWangss / Shutterstock

You don’t have to leave your financial fate in the hands of Congress. Here are just a few moves you can make right now to give your family more financial security.

  • Downsize your insurance bills. Being stuck at home has its perks. With many of us driving less during the pandemic, car insurance companies have been handing out discounts. Is yours unwilling to bend? Easy — shop around for a better policy..
  • Cut the cost of your debt. It’s hard to get ahead if you’re stuck with high-interest debt, like the kind on credit cards. Consider paying off those balances with a single, low-interest debt-consolidation loan. That will leave you just one bill to deal with and potentially free you from debt years sooner.
  • Score a better mortgage rate. Interest rates are historically low at the moment; if you refinance, you could save hundreds each month and thousands over the life of your loan.
  • Turn your pennies into a portfolio. Even if you don’t have much money, you can still earn returns from today’s record-breaking stock market. A popular app will help you invest your “spare change” from everyday purchases into a diversified portfolio.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More

  • 3 Silver Stocks To Buy Now

    Featured Content Gatos Silver, Inc. (GATO) Gatos Silver, Inc. is a precious metals mining company primarily focused on silver and zinc production. Its flagship Cerro Los Gatos mine in Mexico... Read More

  • 3 Metal Production Stocks To Buy Now

    Featured Content Century Aluminum Company (CENX) Century Aluminum Company is a primary aluminum producer, with operations that include the production of high-purity, low-carbon aluminum used in automotive, aerospace, and industrial... Read More

  • 3 Medical Drug Stocks To Buy Now

    Featured Content Teva Pharmaceutical Industries Limited (TEVA) Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in generic and specialty medicines. The company provides a wide range of treatments... Read More

  • 3 Paper Product Stocks To Buy Now

    Featured Content AptarGroup Inc. (ATR) AptarGroup Inc. is a global leader in providing innovative dispensing and packaging solutions, serving diverse industries like beauty, personal care, and pharmaceuticals. They focus on... Read More

  • 3 Restaurant Stocks To Buy Now

    Featured Content Brinker International, Inc. (EAT) Brinker International, Inc. operates well-known restaurant brands such as Chili’s Grill & Bar and Maggiano’s Little Italy. The company is a leader in the... Read More

  • 3 Investment Brokerage Stocks To Buy Now

    Featured Content Robinhood Markets, Inc. (HOOD) Robinhood Markets, Inc. is a financial services company known for its commission-free trading platform, which allows users to trade stocks, options, cryptocurrencies, and ETFs.... Read More

  • 3 Shipping Stocks To Buy Now

    Featured Content ZIM Integrated Shipping Services Ltd. (ZIM) ZIM Integrated Shipping Services Ltd. is a global container shipping company that provides cargo transportation services worldwide. The company operates a modern... Read More

  • 3 Mining Stocks To Buy Now

    Featured Content Perpetua Resources Corp. (PPTA) Perpetua Resources Corp. is a mining company focused on the exploration and redevelopment of the Stibnite Gold Project in Idaho, which is one of... Read More

  • 3 Airline Stocks To Buy Now

    Featured Content General Electric Company (GE) General Electric Company is a global industrial conglomerate with operations spanning sectors such as aviation, healthcare, power, and renewable energy. GE is known for... Read More